Explanatory Memorandum to COM(2023)383 - Conclusion of the Voluntary Partnership Agreement with Côte d'Ivoire on forest law enforcement, governance and trade in timber and timber products to the EU (FLEGT)

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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 20032, 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 Community3. This enables authorities to check 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 countries4.

The Commission entered into negotiations with Côte d’Ivoire 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 Côte d’Ivoire covers all aspects 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, Côte d’Ivoire commits to ensure that the timber has been harvested according to the law of the country of origin. The definition of legality is based on a comprehensive set of national and international laws ratified by Côte d’Ivoire, reflecting the three strands of sustainable forest management.


Côte d’Ivoire also commits to continuing its regulatory reforms to complete and strengthen the legal framework where necessary. It has adopted a framework to monitor compliance and to carry out independent evaluations of the system. These details are set out in annexes to the Agreement, which provide a detailed description of the structures underpinning the timber legality assurance system of Côte d’Ivoire. They also set out the criteria to take a future decision to start the FLEGT licensing scheme.

The Agreement establishes a mechanism for dialogue and cooperation between the EU and Côte d’Ivoire on the licensing scheme, via a joint implementation committee (CCMO – Comité conjoint de mise en oeuvre). 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.

The Agreement is not limited to the product coverage set out in Annex II to Regulation (EC) No 2173/2005 and covers a wide range of exported timber products.

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 stakeholders from the private sector, civil society, and local communities.

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 the scheme. The Agreement describes FLEGT licence of Côte d’Ivoire, 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 Côte d’Ivoire under the Agreement will be deemed legally harvested as laid down in Article 3 of that Regulation.

Consistency with other Union policies

This Agreement is relevant to EU development cooperation policy because it promotes trade in legally harvested timber and strengthens forest governance in Côte d’Ivoire by improving transparency, accountability and participation by stakeholders. The Agreement will also strengthen sustainable forest management and will help combat climate change by reducing the emissions caused by deforestation and forest degradation. The Agreement is relevant to the EU Biodiversity strategy 2030 because it combats illegal timber trade and promotes sustainable forest management and effective participation of local communities, which will help preserve biodiversity. To respect bilateral commitments the EU has entered into and to preserve the progress achieved with partner countries, the upcoming EU Regulation on the making available on the Union market and the export from the Union of certain commodities and products associated with deforestation and forest degradation5 includes a provision declaring wood covered by a FLEGT license to have fulfilled the legality requirement. However, given that the upcoming Regulation covers not only legality but also requires products to be deforestation-free, operators will still need to exercise due diligence to ensure that the timber they place on the EU market is deforestation-free.

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).

The Agreement provides a legal framework to ensure all timber and timber product imports into the EU from Côte d’Ivoire have been legally produced. Therefore, 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 it is for the Council to conclude 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, if amendments can be adopted by 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 it is for the Council to adopt 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.