External Europeanization through timber trade agreements: Tracing causality in environmental governance reform

Abstract

The business models of tropical timber production have long been configured around illegal practices that cause environmental degradation and hinder socioeconomic progress in the Global South. However, the global corporations trading timber often point to regulatory governance weaknesses in the jurisdictions where they source timber as hindering efforts to address illegalities in their supply chains. In an innovative response, the European Union (EU) combines mandatory due diligence for timber imports – the EU Timber Regulation (EUTR) – with EU Forest Law Enforcement, Governance and Trade (FLEGT) Voluntary Partnership trade Agreements (VPAs) that offer finance, technology transfer, and capacity building to support domestic regulation in timber exporting countries. Through process tracing, we assess the extent to which the EU's efforts have been effective in reforming domestic environmental governance to reduce illegal logging in Cameroon and Ghana. This allows for understanding the potential of external Europeanization, a theoretical approach explaining how and why countries (and the businesses they regulate) outside of the EU might adapt their domestic governance institutions and processes to EU rules and norms. As the EU considers similar approaches to regulate forest-related illegalities and deforestation in global agricultural supply chains, it is important to take stock of past and on-going policy efforts. We find that the causal mechanisms embedded in FLEGT have lost their transformative potential due to unfinished domestic reforms, the technocracy of supply chain traceability systems, and market leakage. Our findings suggest the VPA deliberations underpinning supply-side efforts have not shifted the power balance but rather distracted from the reality that there will be winners and losers as the countries shift toward a more transparent and accountable political economy.