Explanatory Memorandum to COM(2022)200 - Conclusion of the Voluntary Partnership Agreement with Guyana on forest law enforcement, governance and trade in timber products to the EU - Main contents
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| dossier | COM(2022)200 - Conclusion of the Voluntary Partnership Agreement with Guyana on forest law enforcement, governance and trade in timber ... |
|---|---|
| source | COM(2022)200  |
| date | 10-05-2022 |
1. CONTEXT OF THE PROPOSAL
• Reasons for and objectives of the proposal
The action plan on forest law enforcement, governance and trade (FLEGT) 1 , endorsed by the Council in 2003 2 , proposes a set of measures to stop illegal logging. These measures include support to timber-producing countries, multilateral collaboration to tackle trade in illegal timber, support to private sector initiatives, and action to discourage investment in activities that encourage illegal logging. The cornerstone of the action plan is the establishment of FLEGT partnerships between the EU and timber-producing countries. In 2005, the Council adopted Regulation (EC) No 2173/2005 on the establishment of a FLEGT licensing scheme for imports of timber into the European Community 3 , that enables checking the legality of timber imported into the EU under FLEGT partnerships.
In 2005, the Council authorised the Commission to negotiate FLEGT partnership agreements with timber-producing countries 4 .
The Commission entered into negotiations with the Co-operative Republic of Guyana in 2013. The Commission has kept the Council updated on progress regularly, with reports to the Working Party on Forests and the FLEGT/EU Timber Regulation Committee. The Commission has also kept the European Parliament and stakeholders informed about the negotiations.
The Voluntary Partnership Agreement between the EU and Guyana addresses all elements of the Council negotiating directives. In particular, it establishes a licensing scheme that checks and confirms the legality of timber products exported to EU and non-EU countries, as well as timber sold domestically. For imported timber, Guyana commits to ensure that such timber has been harvested according to the law of the country of origin. To do this, Guyana will enact specific legislation based on due diligence principles. The definition of legality is based on a comprehensive set of national and international laws ratified by Guyana, reflecting the three strands of sustainable forest management.
Guyana also commits to reviewing its forestry laws and strengthen them where necessary. It has also set out a framework to monitor compliance and for independent evaluations of the system. To carry out these measures, the parties have agreed to an ambitious timeline of 6 years (from the entry into force). These elements are set out in annexes to the Agreement, which provide a detailed description of the structures that will support the development of the Guyana Timber Legality Assurance System, as well as criteria to take a future decision to start the FLEGT licensing scheme.
The Agreement establishes a Joint Monitoring and Review Committee for dialogue and cooperation between the EU and Guyana on the licensing scheme. It sets out a framework for involving stakeholders, social safeguards, and accountability and transparency. It also describes how complaints are handled and how monitoring and reporting will be carried out.
Besides the products set out in Annex II to Regulation (EC) No 2173/2005, the Agreement also covers all timber products currently produced in, imported into, and exported from Guyana.
The Agreement is underpinned by the principle of non-discrimination, which means that stakeholders from both within and outside the forestry sector will be involved. These include those from the private sector, civil society, local and indigenous communities, as well as other people dependent on forests.
The Agreement provides for import controls at the EU’s borders under Regulation (EC) No 2173/2005 on the FLEGT licensing scheme and Regulation (EC) No 1024/2008 laying down detailed measures for implementing it. The Agreement describes Guyana's FLEGT licence, which uses the format prescribed in the Implementing Regulation.
• Consistency with existing policy provisions in the policy area
The proposal is consistent with Regulation (EU) No 995/2010 because the timber products, covered by FLEGT licences issued in Guyana according to the Agreement, will be deemed legally harvested as laid down in Article 3 of that Regulation.
• Consistency with other Union policies
The conclusion of this Agreement is relevant for EU development cooperation policy because it promotes trade in legally harvested timber and strengthens forest governance in Guyana by improving transparency, accountability and participation by stakeholders. The Agreement will also strengthen sustainable forest management and will contribute to combating climate change through reduced emissions caused by deforestation and forest degradation.
2. LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY
• Legal basis
The legal basis is the first subparagraph of Article 207(3) and the first subparagraph of Article 207 i of the Treaty on the Functioning of the European Union (TFEU), combined with Article 218(6)(a)(v) and Article 218(7).
Since the Agreement provides a legal framework to ensure all timber and timber product imports into the EU from Guyana have been legally produced, the EU has exclusive competence to conclude it in line with the first subparagraph of Article 207(3) and the first subparagraph of Article 207 i of the TFEU. Article 218(6)(a)(v) of the TFEU provides that the Council concludes such agreements. Article 218(7) of the TFEU empowers the Council to authorise the negotiator to approve amendments to the Agreement on the EU’s behalf, where the Agreement provides for amendments to be adopted by a simplified procedure or by a body set up by the Agreement.
• Subsidiarity (for non-exclusive competence)
Not applicable.
• Proportionality
The conclusion of this Agreement is in line with the EU FLEGT action plan and does not go beyond what is necessary to achieve its aims.
• Choice of the instrument
This proposal is in line with Article 218(6)(a)(v) of the TFEU, which provides that the Council adopts decisions on concluding international agreements.
3. RESULTS OF EX-POST EVALUATIONS, STAKEHOLDER CONSULTATIONS AND IMPACT ASSESSMENTS
• Ex-post evaluations/fitness checks of existing legislation
Not applicable.
• Stakeholder consultations
Not applicable.
• Collection and use of expertise
Not applicable.
• Impact assessment
Not applicable.
• Regulatory fitness and simplification
Not applicable.
• Fundamental rights
Not applicable.
4. BUDGETARY IMPLICATIONS
This initiative does not have budgetary implications.
5. OTHER ELEMENTS
• Implementation plans and monitoring, evaluation and reporting arrangements
Not applicable.
• Explanatory documents (for directives)
Not applicable.
• Detailed explanation of the specific provisions of the proposal
Not applicable.