Voluntary Partnership Agreement Research Articles

Effect of the Timber Legality Requirement System on Lumber Trade: Focusing on EUTR and Lacey Act

This study provides novel insights into the policy effects of timber legality verification methods, specifically Due-diligence (under the European Union Timber Regulation (EUTR)) and Due-care (under the Lacey Act), on coniferous and non-coniferous lumber trade, highlighting their significance in the context of global lumber trade. Timber legality verification plays a pivotal role in the global timber trade. We comprehensively assess the impact of verification methods on coniferous and non-coniferous lumber trade, utilizing two decades of trade data (1997–2017) across approximately 160 countries. We employ the difference-in-differences method based on the gravity model of international trade, utilizing robust export–import data and demographic profiles. Our findings demonstrate that the effect of EUTR on coniferous lumber imports ranged between −0.32% and −0.05%, and that on non-coniferous lumber imports ranged between −0.44% and −0.05%, whereas the effect of the Lacey Act on coniferous lumber imports ranged between −0.93% and −0.09%. Non-coniferous lumber imports remained unaffected. The Voluntary Partnership Agreement (VPA) led to decreased exports to the EU and US. Our findings hold two key implications. First, Due-diligence exhibits more consistent policy effects than Due-care. Second, supporting VPA-participating countries is crucial for facilitating timber trade. These insights inform timber trade policies and sustainable practices.

Lndonesia-Europe Asymmetry Trade Agreement Post-Brexit UK

This study aims to estimate how the asymmetry of the agreement between the UK and Indonesia post-Brexit. A literature review on international trade agreements was carried out by tracing agreement data stored in the database of the Indonesian Ministry of Foreign Affairs in the 2010-2019 period. The result is that there is only one trade agreement between Indonesia and the UK, which is related to the Fourth Stage Multi-stakeholder Forestry Program (4th-MFP) project. In the same period, Indonesia also participated in a trade agreement with the European Union called the Voluntary Partnership Agreement - Forest Law Enforcement Governance and Trade (VPA-FLEGT). The VPA-FLEGT is asymmetric in favor of the European Union while the MFP is asymmetric in favor of Indonesia. After analyzing the two agreements, it was found that the tendency is that the UK will continue to encourage asymmetry due to its strict environmental laws and large demand for timber. The asymmetry will encourage Indonesia to continue supplying Britain with timber from legal sources post-Brexit.

Recognition on whose terms? Indigenous justice struggles in the EU-Honduran FLEGT Voluntary Partnership Agreement

Building on decolonial environmental justice (EJ) and indigenous resurgence theories, this article explores how indigenous organisations in Honduras have used the EU-Honduras Forest Law Enforcement, Governance and Trade (FLEGT) Voluntary Partnership Agreement (VPA) to pursue state recognition of procedural, self-determination and self-governance rights. Specifically, the article discusses indigenous engagements with the FLEGT VPA multi-stakeholder dialogues, the development of the VPA text and legality matrix and the FAO-EU-FLEGT donor funds as catalysers for the development of a – highly contentious – Free, Prior and Informed Consent (FPIC) bill, the development of FAO-EU-FLEGT-funded FPIC protocols, and the push for land titling and the formal recognition of indigenous governance institutions and practices. Applying decolonial environmental justice (DEJ) and indigenous resurgence insights, the article asks “on whose terms” recognition was obtained. It concludes that, while the VPA increased access to policymakers for longstanding indigenous agendas, it also reinscribed the colonial political hierarchy by ignoring, diluting and reinterpreting indigenous proposals in favour of state sovereignty over indigenous lands and people. The research was based on a combination of literature review, interviews and written communications with indigenous representatives and document analysis.

Social obligations in the logging sector in Cameroon, Ghana, Liberia and Republic of Congo

This paper offers a critical review of the social obligations (revenue redistribution, direct payments, payments in kind, and access to justice or compensation) of logging concessionaires to affected communities in Cameroon, Ghana, Liberia and Republic of Congo. The research draws on a full desk-review of relevant legal texts, and consultation with leading non-governmental organisations working in the forest sector in the four countries. It appears that the legal foundation of social obligations is mainly shaped by national context, and therefore important differences can be observed across countries. However, they are complex, incomplete and precarious, providing opportunities for elite capture, and communities – and the State – not reaping the benefits they are owed by law. A key conclusion is that legality-licensing schemes such as under a Voluntary Partnership Agreement (VPA) with the European Union (EU) tend to downplay social obligations compared to other aspects of legal compliance.

Understanding Stakeholders’ Perspectives on the Indonesia–EU FLEGT-VPA Scheme Implementation

Illegal logging comprises illegal activities that impact the economy, environment, and social aspects. This situation is addressed by the Forest, Law Enforcement, Governance, and Trade Voluntary Partnership Agreement (FLEGT-VPA) scheme. In 2014, Indonesia and the European Union ratified the FLEGT-VPA and then started the FLEGT Licensing in 2016. This study intended to discover stakeholder satisfaction from the perspectives of the government institutions, civil society organizations, and the private sector on the Indonesia–EU FLEGT-VPA scheme, and it was accomplished by performing a mixed-method sequential explanatory research design. First, the quantitative data, collected through a web-based questionnaire (n = 103), resulted in the stakeholders’ satisfaction (dependent variable), in connection with all of the independent variables, showed that all three stakeholders were satisfied with sustainable forest management, new market opportunities, timber legality, and law enforcement. In contrast, they were slightly satisfied with the social safeguards. From the measurement of the multiple regression model, the results showed that each independent variable has a positive and significant effect on stakeholder satisfaction. We discovered that timber legality performed the highest significance to stakeholders’ satisfaction. Second, qualitative data were collected to briefly explain the preceding quantitative findings through web-based in-depth and focus group interviews (n = 20). All three stakeholders seemed to agree to the scheme implementation that supported the application of sustainable forest management principles, improved the legality and traceability, promoted good governance, and strengthened the social safeguards, while it improved the new market opportunities to a lesser degree. Finally, all three stakeholders explained that there are still main challenges to be solved in improving the scheme implementation such as (1) administrative problems mainly experienced by small and medium enterprises; (2) uncompetitive FLEGT license products that are not well known to buyers; and (3) the absence of incentives given by both parties (Indonesia and the EU) to the FLEGT-licensed product exporters.

Impact of the FLEGT license on Indonesian plywood competitiveness in the European Union

Indonesia is the only country with the FLEGT (Forest Law Enforcement, Governance, and Trade) license that allows them to sell plywood in the EU market. However, an assessment of the impact of FLEGT on Indonesian plywood competitiveness has not yet been made. This study aims to determine the impact of the FLEGT license on Indonesian plywood competitiveness in the EU market. The study was conducted using secondary data from January 1999 to July 2021. RCA, two-stage least squares, and Propensity Score Matching were used to analyse the data. The result shows that the FLEGT license has deceased Indonesian plywood competitiveness in the EU market. However, this condition is still better than implementing the Voluntary Partnership Agreements phase. Indonesian plywood competitiveness has also reduced due to the increase in the consumer price index and the Indonesian plywood price. Therefore, we recommend strengthening the promotion of Indonesian plywood in EU countries, educating Indonesian plywood stakeholders about the FLEGT system, and managing the inflation rate.

Examining the EU Forest Law Enforcement, Governance and Trade (FLEGT) action plan in Ghana through a governmentality lens

Over the past decade, the EU Forest Law Enforcement, Governance and Trade (FLEGT) action plan has emerged as a key global initiative in addressing deforestation and forest degradation. Yet, there is considerable scholarly debate and disagreement about the impact of FLEGT on forest governance, and ultimately, its effectiveness in arresting deforestation and degradation. This article contributes to this debate through a detailed examination of FLEGT in the case of Ghana. It applies a governmentality analytical lens that examines practices of problematization, knowledge production, intervention and subjectification. The article builds on a detailed review of the substantial literature on FLEGT in Ghana, the first timber producing country to enter into a voluntary partnership agreement with the EU. The article illustrates how FLEGT frames illegal logging as the central problem, and how this focus relegates other problems – especially those concerning tree tenure and benefit sharing – to secondary positions. This goes hand in hand with production of knowledge that stabilizes illegal logging as the key problem and provides legitimacy to the FLEGT implementation. The article then examines the many interventions which FLEGT has triggered. On the positive side, it has enhanced consultation and participation of private sector and civil society in forest governance, as well as increased forest sector transparency. Despite its stipulated aims, FLEGT has been less successful in nurturing deeper forest governance reforms that could provide incentives for agents in the sector to engage actively in forest conservation and cultivation of trees. FLEGT focuses on technical issues and challenges, failing to address inherently political issues concerning forest and tree tenure. It maintains local populations living in and close to the forest as passive subjects with limited rights to the forest or influence over its management. The article concludes that to achieve its aims, FLEGT needs to move away from its current technical focus and colonial forest governance model to seriously address issues of tree tenure, benefit sharing and access. It discusses what is required for such a change to take place, and more generally, what a governmentality lens has to offer political ecology.

Pembuatan Barcode Produk Industri Meubel dan Furniture untuk Mendukung Ekspor Produk Ber-Sertifikat Legalitas Kayu

Timber Legality Certificate is to meet the requirements of the legality of timber for the forest industry. Application of timber legality verification system allows Indonesia opened wider timber market, especially European market, through the signing of the Voluntary Partnership Agreement (VPA) in September 2013. The forestry industry, timber legality certificate must fulfill in order to be able to do eskport product. Must to get the V-legal documents in any export activity forestry product timber legality certified consequences must be applied to production management system and marketing system. The research objective is to create a system of production information via barcode for small industries that already have a certificate of Timber Legality. The results showed that the ability to prepare the production and marketing of information systems to support the administration of V-legal documents in the export activities for small industries, a serious problem in meeting the document export goods. Therefore, barcode software development program to help solving the problems facing SMEs in the furniture industry and furniture administrating V-legal documents.

FLEGT Voluntary Partnership Agreement implementation in Ghana: insights from a SWOT analysis

The European Union Forest Law Enforcement, Governance and Trade (FLEGT) Voluntary Partnership Agreements (VPA) is an important international forest governance initiative, yet various implementation challenges remain. The FLEGT VPA implementation challenges are well-documented in the scientific literature, where various methodologies and research approaches have been used. As the empirical case indicated various contradicting and overlapping claims, where different respondents framed the same situations as strengths as well as weaknesses, and/or as threats as well as opportunities, we used the strengths, weaknesses, opportunities and threats (SWOT) approach to assess the associated governance changes in FLEGT VPA implementation in Ghana. This paper offers new insights derived from participant observation of the second independent technical evaluation of the Ghana Timber Legality Assurance System (GhTLAS) conducted in July 2019, and from semi-structured interviews with key informants and a document review. What are considered the greatest perceived strengths – namely multi-stakeholder engagement, clarification of regulatory frameworks, and access to information – are brought into question once the identified weaknesses and threats are explored in more detail. The identified weaknesses include the top-down nature of the multi-stakeholder process, fatigue related to additional legality principles, and bureaucracy of the GhTLAS, which negatively affect VPA implementation activities and processes in Ghana.

Tracing timber legality in practice: The case of Ghana and the EU

The traceability of products has become an ever more important topic in global value chains because governments, producers and consumers wish to have in-depth information on the origin, quality, safety and sustainability of the products they regulate, trade or buy. However, traceability systems come with criticisms and challenges. This article describes how timber traceability is being realized in Ghana in the context of the Voluntary Partnership Agreement (VPA) between Ghana and the EU, which is part of the Forest Law Enforcement, Governance and Trade (FLEGT) initiative. Building on practice theory, this article conceptualizes traceability systems as ensembles of procedures, interpretations and activities. Empirically, it presents an analysis of the Ghanaian Legality Assurance System (LAS) and Wood Tracking System (WTS). Results show that the LAS/WTS moved from a ‘digitalized regulatory track-and-trace system’ on the design table towards a more hybrid one in practice, integrating elements of a communication governance mode and of a mass-balance model too, and keeping alive a parallel paper-based infrastructure. While particularly governmental officials are satisfied with the LAS/WTS, it is also important to recognize that stakeholders interpret aspects of the system quite differently, and deal with implementation issues on the ground quite differently, implying that ‘legality-on-paper’ and ‘legality-in-practice’ are not necessarily the same.

The (post)politicisation of timber trade: (Un)invited participation in the EU-Vietnam Voluntary Partnership Agreement

This article analyses the Voluntary Partnership Agreement (VPA) between the European Union (EU) and Vietnam as a form of postpoliticisation. In addition to their primary objective the governing of bilateral timber trade value chains, VPAs also entail an element of democratisation, as they are conditional upon stakeholder and civil society participation. Building on poststructuralist discourse-theory (PDT) and Erik Swyngedouw's notion of ‘the postpolitical condition’, this article asks how (un)invited non-state actor participation in the EU-Vietnam VPA discursively (re-)articulates and (de)politicises problems and solutions. The article finds that invited participation in Vietnam was characterised by consensual and technocratic governance practices and a discursive foreclosure of problems and solutions. The VPA's consensual space was ruptured by uninvited participation by several Cambodia NGOs, who questioned the VPA's rationalistic logics of legality verification and certification for imported timber products. These concerns were dismissed as nonsensical by the EU, demonstrating the postpolitical discursive foreclosure for non-state actor engagement. The research is based on 33 interviews with respondents in Vietnam and Europe as well as a document analysis of the VPA text and annexes, EU communications, NGO advocacy materials and media appearances by Cambodian NGOs.

Navigating Through the Maze: Practical Constraints in the Implementation of Forest Regulations (FLEGT) in Ghana

The European Union Forest Law Enforcement on Governance and Trade (EU-FLEGT) Action Plan seeks to promote widespread sustainable forest management and relies largely on transnational actors and international law in its operationalization. The EU FLEGT sets out EU custom regulation through Voluntary Partnership Agreements (VPAs) which is a bilateral agreement between the EU and wood exporting countries with instruments aimed at promoting sustainable practices within the forest resources value chain. Ghana became a signatory to the FLEGT VPA since 2007, as part of the process, it is required to use technology to track timber logging from source to point of export. Issues of networks and inter-agency collaboration and dealing with human elements remain crucial in ensuring effective operationalization. Adopting a qualitative case study design as well as theories and concepts from the public policy implementation literature, this study examines the implementation vagaries of the FLEGT VPA in Ghana. Although the VPA is a laudable idea of using Information Technology (IT) in effectively tracking timber to its original source to ascertain legality or otherwise of the timber, the needed IT infrastructure and resources have not matched up with the goal. Additionally, the VPA implementation is expensive and has come with additional cost to the implementers, The study further observes that the increasing ‘red flags’ that are raised on the Ghana Wood Tracking System is a blend of technical errors emanating from negligence or capacity challenges and human manipulation. This calls for regular consultations and workshops with relevant stakeholders in order to assess which skills are deficient and a need to beef up through on-the-job training. The domestic market and trading activities tend to fuel demand for illegal timber hence a constraint to the full realization of the VPA objective. The study makes policy suggestions on how to address these implementation challenges.

Enforcing Sustainable Forest Management Policies: An Assessment of the Institutional Structures for VPA Implementation in Ghana

Public policy formulation in the forestry management space is an essential step in addressing issues of environmental degradation. That notwithstanding, policies will remain mere intents if they are not forged with appropriate structures and institutional underpinnings. This study assesses the institutional and structural mechanisms adopted to foster effective implementation of the Voluntary Partnership Agreement in Ghana. The qualitative case study design was employed to gather data from purposively selected respondents. The study observes that after ratification of the VPA in Ghana, this was forged with subsequent measures to ensure smooth operationalization of same. The structures include a Legality Assurance System (LAS); chain of custody and wood tracking system (GWTS); establishment of a Timber Verification Department to check and verify the legality of all timbers among others. The structures also entail collaborative governance, transparency and accountability measures to ensure operationalization of the VPA requirements. The study observes that where there are multiple, overlapping and independent actors along the value chain, trust and credibility is built such that those in the downstream of the implementation remain very careful and conscientious in their operations and dealings. The study concludes that relevant implementation structures interspersed with actor constellations, and multi-stake holding remain cornerstone of SFM arrangements.

On the Question of Sustainable Forest Practices? An Assessment of Ghana’s Ratification of the Voluntary Partnership Agreement

Between 2015 and 2020, the rate of deforestation was estimated at 10 million hectares per year. Continued forest degradation raises serious socio-economic and environmental concerns which has led to policy proposals emanating from both local and international sources. What would make a sovereign country kowtow to externally driven policy intervention? This study contributes to the literature on sustainable forest management by assessing why countries would ratify interventions that are proposed by parties external to the sovereign state. Being the first country to ratify the European Union Voluntary Partnership Agreement (VPA), this study assesses the rationale for Ghana’s ratification of the VPA. The study adopts the qualitative case study design to purposively select key respondents who play critical roles in VPA value chain in Ghana. The study observes that although the VPA and its requirements are from external sources, they nonetheless fall in line with local ongoing efforts by the Forestry Commission of Ghana. The study concludes that a policy even if originates from external source is more likely to be embraced if does not challenge but feeds into government’s prevalent activities, the legitimacy of that agreement/policy and enforcement remains higher. The study argues for a convergence of local and external interventions and the development of innovative mechanisms to effectively manage forests sustainably, to improve peoples’ livelihoods, and protect natural resources. Keywords: Sustainability; forest management; VPA; Policies; sustainable livelihoods DOI: 10.7176/JRDM/73-05 Publication date: February 28 th 2021

Eighty-six EU policy options for reducing imported deforestation

Eighty-six EU policy options for reducing imported deforestation

Mandatory legality licensing for exports of Indonesian timber products: Balancing the goals of forest governance and timber industries

The government of Indonesia implements a Timber Legality Verification System (Sistem Verifikasi Legalitas Kayu/ SVLK) as an instrument to improve forest governance and secure better trade linkages to foreign markets. It obliges all exports to be legally verified. Nonetheless, legality licensing has become increasingly controversial in the past decade because export policies keep changing whether to require the licensing for all types of products and scales of manufacturing. This paper discusses the pros and cons of mandatory legality licensing for exports. While overall there is a compelling argument that Indonesian exports have tended to increase in aggregate terms, different types and scales of forest industries have had different experiences with legality licensing. More specifically, small and medium-sized enterprises (SMEs) are experiencing with significant technical and financial burdens in contrast with the consummate ease with which larger manufacturers engage in legality. However, a complete termination of legality licensing for all exports, as was promoted and ruled on in early 2020, might not be the best viable solution. We argue that the termination will not necessarily result in a boost for SMEs, nor will such a decision solve challenges faced by small operators in engaging in global markets. Such a measure could also be viewed as a violation of the country’s Voluntary Partnership Agreement with the European Union (EU). Instead, we recommend revisions to the legality systems and its policies, addressing the key issues and challenges that SMEs face and identifying support mechanisms for SMEs to navigate adverse impacts. In deregulating the legality policy, the Government of Indonesia will also need to establish communication and dialogues with the EU to explore the potential of opening new negotiations on any recommended amendments.

Indonesian Government’s Strategies on Obtaining Market Access of Wood Products in EU Countries with Forest Law Enforcement, Governance and Trade - Voluntary Partnership Agreement (FLEGT-VPA) (2007-2016)

Forestry has played an important role in Indonesia's economic development. Forestry and related products contribute approximately 3.5 per cent to Indonesia’s GDP and contribute to the livelihoods of 15 million Indonesian people. Major importer countries of Indonesian wood products comprise to several countries including European Union (EU). However, Indonesia export on wood product activities has significant challenge on the legality of forestry and related products. Illegal logging issues in Indonesia have become Indonesia’s major historical problem around the forestry industries. This is related to the issues that most of the wood products produced by the Indonesian timber industry are derived from illegal timber so that buyers from European Union countries are forced to reject the import of these wood products. Thus, the purpose of this article is to analyze Indonesian government strategy to obtain woods market in EU. Following by the issues, Indonesia need to reform the certification system and also the policy reforms to adjust the EU standard regulation. That is why Indonesian government began to cooperate with the European Union through the FLEGT-VPA program.

Voluntary Partnership Agreements: Assessing impacts for better policy decisions

The European Union's Forest Law Enforcement, Governance and Trade (FLEGT) Action Plan is an ambitious strategy to fight illegal logging and its negative impacts. The FLEGT theory of change is based on three types of FLEGT actions, namely timber production, demand, and global timber trade standards and dynamics. FLEGT works in more than a dozen countries through Voluntary Partnership Agreements (VPA). Very few studies exist on the global or country-level impact of the FLEGT-VPA process. We sought to understand the contribution of FLEGT-VPAs in three countries (Cameroon, Ghana, and Indonesia) at different stages of VPA implementation. A uniform methodology was applied to provide cross-cutting results on perceived changes directly linked to the FLEGT expected impacts while allowing for contextual specificities. This approach is designed to be easily replicable in all VPA countries and directly linked to the FLEGT global theory of change. This commentary presents our findings and their implications for policy makers.

Transparency Index of the Supplying Countries’ Institutions and Tree Cover Loss: Determining Factors of EU Timber Imports?

Illegal logging and the associated deforestation have serious consequences for biodiversity, the climate, the economy and society. The EU Timber Regulation (EUTR) prohibits the placing of illegally harvested timber or timber products on the market. The objective of this paper is to analyse the recent evolution of EU imports of these products from the international market, in order to check how the transparency index of the supplying countries’ institutions and tree cover loss have influenced this trajectory. To that end, a panel data model is estimated with 228 observations from 38 exporting countries between 2012 and 2017. The results show that EU timber imports have a direct association with the transparency index and an inverse relationship with tree cover loss; both these relationships are highly significant at the one-percent level. Other significant factors are the performance of the EU construction sector (as a proxy for timber demand) and timber supply. In the short and medium-term, Voluntary Partnership Agreements (VPAs) signed between the EU and non-EU timber-producing countries have a negative influence on the supply to EU member states. This study presents an analysis of EU timber imports after the implementation of the EUTR, providing specific conclusions that can inform policymakers’ efforts to foster sustainable forest management.

Monitoring Implementation Impact of the EU-Indonesia’s VPA on SME Livelihood

The Europe Union (E.U.) has agreed to grant the Forest Law Enforcement, Governance and Trade (FLEGT) license to Indonesia as the first country in the world to receive it. FLEGT VPA (Voluntary Partnership Agreement) is a bilateral agreement between the European Union (E.U.) and wood exporting countries, to improve forest governance sector and ensure that timber and wood products imported into the E.U. are produced by the laws and regulation of partner countries. The Indonesian government has obliged to implement Article 12 relating to social safeguards. Indonesia has to periodically monitor to see the extent to which the VPA has an environmental and social impact that affect the lives and welfare of vulnerable and marginalised groups. The purpose of this study is to analyse how the effect of implementation of the Sistem Verifikasi Legalitas Kayu (SVLK) as part of VPA in the small and medium forestry industry sector. Methodology survey with focus group discussions, structured interviews, and semistructured interviews to find out the response and opinion of SME’s owner and employee addressed the effect of SVLK in East Java and Central Java, Indonesia. The theory of change (ToC) was used to consider the implications of SVLK implementation on the sustainable livelihood of small and medium enterprises (SME’s). The results of this study showed that SVLK had a more significant impact on livelihoods, as follows. First, the vulnerable and marginalised groups need to be supported by stakeholders to encourage readiness in faces of SVLK impact. Second, SVLK is susceptible to the effects and at risk of losing livelihoods for women and disabled groups in a short time. This group includes vulnerable groups of aspects of adaptability and sensitivity to the effect. Third, SME’s worker groups who do not have a labour organisation are sensitive to the impact on the workplace company. This group is classified as a group that is quite vulnerable if the effect lasts long enough and on a large scale of impact.