Honduras

Background

Learn more about the Honduras-EU Voluntary Partnership Agreement (VPA), which aims to address illegal logging, improve forest governance and promote trade in legal timber products.

Honduras forest sector

About 5.4 million hectares of Honduras, or slighty less than half of the land area, are covered by forests. Roughly half of these forests are tropical rainforests, about a third are coniferous forests, and the remaining consists of mangroves, dry tropical forests and agroforestry systems.

Since 2015, Honduras lost about 12.5% of its forest area. Anthropogenic causes such as deforestation and illegal logging amount to 0.5% (24.000 ha annually), while loss due to climate changes impact is 12% of which 11% (600.000 ha) is due to pest infestation, and 1% (56.000 ha annually) is due to forest fires.

The forest sector amounts to an average of about 3.6 % of the GDP. The United States is Honduras’ main timber trade partner. However, exports have noticeably risen in neighboring countries, with El Salvador and Nicaragua constituting EUR 20 million (28%), the second trade partners of Honduran timber products.

Illegal logging and trade

Forests used to make an important contribution to the Honduran economy, providing jobs and livelihoods for local people. However, with increasing requirements regarding the legality of timber and timber products on international markets, its share in the economy has decreased. Deforestation and forest degradation have also increased, driven by rising poverty and illegal activities such as drugs trafficking. Between 1990 and 2010, Honduras lost almost three million hectares of forests. The VPA, with its emphasis on legality and good governance, has a role to play in helping the forest sector regain its prominence, provide rural jobs and generate income for Hondurans.

The volume of timber traded between Honduras and the EU is currently modest, representing less than 2% of Honduran timber exports. Despite this, Honduras has chosen to pursue a VPA with the EU to improve law enforcement, transparency and forest governance.

Access to markets other than the EU is also of interest to Honduras, with exports to the United States (US) being particularly important. In agreeing a VPA, Honduras aims to enable its wood products to meet the due diligence requirements of US legislation that prohibits imports of timber of illegal origin. Furthermore, Honduras has expressed a desire to also boost timber exports to other international markets, and sees the VPA as a useful tool to ensure legality.

What is a VPA?

A Voluntary Partnership Agreement (VPA) is a legally binding trade agreement between the EU and a timber-exporting country outside the EU. VPAs are a key component of the EU Forest Law Enforcement, Governance and Trade (FLEGT) Action Plan of 2003. A VPA aims to ensure that all timber and timber products destined for the EU market from a partner country comply with the laws of that country.

Besides promoting trade in legal timber, VPAs address the causes of illegality by improving forest governance and law enforcement. A major strength of VPAs is that they look beyond trade to consider development and environmental issues.

Stakeholders in government, the private sector and civil society – and, uniquely for Honduras, indigenous peoples – develop and implement VPAs through a participatory process. A VPA is, therefore, a vehicle for addressing the needs of different stakeholders and for including many people who have never before had a voice in decision making.

Key elements of a VPA

Key elements of a VPA are described in its main text and annexes. In Honduras and other countries where VPAs have already been initialled, these include:

A timber legality assurance system to verify that timber products are legal and can be issued with FLEGT licences
Commitments to legal reforms, public disclosure of information and other improvements to forest governance
A framework for overseeing, monitoring and evaluating implementation of the VPA and its economic, social and environmental impacts

How a VPA promotes legal timber trade

A VPA partner country that has implemented a timber legality assurance system and other VPA commitments can issue demonstrate the verified legality of timber products with through FLEGT licences. The advantage is that FLEGT-licensed timber products automatically meet the requirements of the EU Timber Regulation (EUTR), which prohibits EU operators from placing illegally harvested timber and timber products on the EU market.

The EUTR entered into force in 2013. It requires EU operators to perform due diligence checks to ensure the timber products they place on the EU market are legal. FLEGT-licensed timber meets the due diligence requirements under the EUTR.

A VPA partner country can only issue FLEGT licences through a timber legality assurance system that the EU and the partner country have agreed on, developed and testedevaluated. Before a country can begin FLEGT licensing, the EU and the partner country must confirm that the country’s timber legality assurance system works as described in the VPA. Confirmation by the two Parties means that the system is robust and will issue FLEGT licences only to legal timber products.

While FLEGT licensing is an important goal, it is not the end point of a VPA process. Governance reforms, legislative and policy reforms, impact monitoring, improvements to the timber legality assurance system and other activities continue.

Through progress on VPAs, the implementation of the EU Timber Regulation and dialogues with other important timber markets, including China, the EU and its VPA partner countries are contributing to a growing global movement to stop trade in illegal timber and timber products. Australia, the United States and Japan also seek to restrict the placing of illegal timber on their markets. The process to achieve FLEGT licences may therefore help VPA partner countries such as Honduras meet the legality requirements of markets beyond the EU.

VPA status

2022
September: VPA entered into force
2021
June: VPA ratified
23 February: VPA signed
2018
14 June: VPA agreed
2013
January: Negotiations started

European Forest Institute

4th round of negotiations in Brussels, 2015

The Honduras-EU VPA

Honduras is the first Latin American country (and the eighth overall) to sign a VPA with the EU.

The VPA negotiations began in January 2013 and the Agreement was signed in February 2021. Both Parties have now ratified the VPA, which is expected to enter into force soon.

The level of stakeholder participation in the VPA process in Honduras is unprecedented. This is mainly because, for the very first time in Honduras, the VPA process offers a space for political dialogue for environmental defenders and indigenous peoples to defend their rights. The acceleration of forest loss by illegal activities and the increasing climate change impacts have generated a sense of urgency to act within stakeholders involved in the forest sector, including local communities and indigenous peoples. The VPA process offers the opportunity for stakeholders with a weaker voice to bring about their concerns at the national level. Through the implementation of the VPA, Honduras will showcase EU support in: strengthening the legality of timber harvesting and trade; improving community forest livelihoods: mitigating climate change impacts; and safeguarding basic human rights.

Honduras has expressed its intention to use the VPA to increase transparency in the forest sector. Like other VPA countries, its VPA includes an annex on public disclosure of information that lists the information the government commits to making publicly available.

The VPA process in Honduras is providing opportunities to make legal compliance and law enforcement much clearer, as well as to identify overlaps, gaps and inconsistencies in the current legal framework.

There is broad recognition among stakeholders in Honduras that land tenure is one of the key challenges to address in improving forest governance. At present, several government bodies have responsibilities for land tenure, hindering effective and coherent land tenure policy and implementation. Land conflicts are a major source of human rights abuses in Honduras. The VPA is bringing such challenges to the fore through the active participation of all stakeholders, and has a strong focus on human rights.

Honduras and the EU signed the VPA in February 2021. The VPA and its commitments will become legally binding once each Party has ratified it in line with their internal procedures. A Honduras-EU Joint Implementation Committee will oversee implementation and respond to concerns about problems as they arise. VPA implementation can therefore improve as it proceeds.

To issue FLEGT licences as required by the VPA, Honduras is developing a robust timber legality assurance system. The timber legality assurance system will build on existing national initiatives that aim to strengthen forest governance (see Honduran efforts to tackle illegal logging). Honduras will be able to issue FLEGT licences only when the timber legality assurance system has been successfully tested and Honduras and the EU are satisfied that it functions as described in the VPA.

Like other VPAs signed to date, Honduras has also included commitments to improve transparency, accountability, legislative clarity and other aspects of governance.

Key dates in Honduran’s efforts to tackle illegal logging

Honduras has made considerable efforts to address illegal logging, a problem the country has struggled with for decades. In 2005, in recognition of the scale of the problem, the National Commission for Human Rights launched an independent forest monitoring initiative to assess legal compliance, and observe and guide forest law enforcement systems.

In 2007, a new Forest Law entered into force, after an unprecedented participatory process that saw the Government, civil society and the private sector work together. The law established a new forest authority, called the Forest Conservation Institute (Instituto de Conservación Forestal, ICF). In 2010, ICF adopted a national strategy for the control of illegal harvesting and transport of forest products (Estrategia Nacional para el Control de la Tala y el Transporte Ilegal de los Productos Forestales, ENCTI). In 2013, Honduras became the first Latin American country to enter into VPA negotiations with the EU, and in 2021, it was also the first in the region (and the eighth overall) to sign a VPA with the EU under the FLEGT Action Plan.

1974
Honduras establishes the Forest Social System, which gives local communities rights to use, and responsibilities to protect, their forest resources.
1982
Honduras launches a nationwide land titling project to clarify land tenure and increase land productivity.
1992
Honduras passes the Law for the Modernisation and Development of the Agricultural Sector, which puts over 150,000 land titles in private hands.
2005
Honduras establishes an independent forest monitoring initiative, hosted by the National Commission for Human Rights.
2007
Honduras passes a new Forest Law, which establishes a new forest authority.
2010
Honduras adopts a national strategy for the control of illegal harvesting and transport of forest products.
2013
Honduras and the EU hold the first round of VPA negotiations.

Honduras and the EU hold the second round of VPA negotiations.
2015
Honduras and the EU hold the third and fourth rounds of VPA negotiations.
2016
Honduras and the EU hold the fifth round of VPA negotiations.

Honduras and the EU hold a VPA technical session.

Honduras and the EU test the VPA on the ground.
2018
Honduras and the EU initial the VPA.
2021
Honduras and the EU sign the VPA.
2022
VPA enters into force after Honduras and the EU each ratified the agreement in line with their internal procedures.

Honduras’ timber legality assurance system

As part of the VPA process, Honduras is developing a system for assuring the legality of its timber. The timber legality assurance system will be based on the existing national strategy against illegal logging (ENCTI).

As in all VPAs, the timber legality assurance system will have the following five components:

Legality definition:The legality definition states the aspects of a VPA partner country’s law for which the timber legality assurance system evaluates compliance with, for purposes of FLEGT licensing. Honduras has agreed a legality definition that builds on existing laws and is supported by all stakeholders. Honduras has also reached agreement on the timber products to be covered by the VPA.
Supplychain controls: Supply chain controls ensure that timber products verified as legal remain legal throughout all processes associated with the supply chain. Supply chain controls also prevent verified legal products being tainted by unverified products entering the supply chain. Honduras is currently working to develop supply chain controls.
Verification of compliance: Verification of compliance involves checks that all the requirements of the VPA legality definition and supply chain controls have been met to ensure that timber products are legal. Honduras is working to develop its approach to verifying compliance.
FLEGT licensing: A FLEGT licensing authority issues FLEGT licences to consignments of timber products that the verification mechanism has confirmed are legally compliant. FLEGT licensing cannot begin until a joint evaluation of the timber legality assurance system by Honduras and the EU confirms that the system works as described in the VPA (see Next steps).
Independent audit:The independent audit regularly checks that all aspects of the legality assurance system work properly. An annex to the VPA provides terms of reference for the auditor.

How the Honduras-EU VPA improves forest governance

Greater participation in decision making

The level of stakeholder participation in the VPA process in Honduras is unprecedented. Representatives of the Government, civil society, the private sector and indigenous peoples have actively participated in negotiations and committed to maintaining their engagement throughout implementation. The VPA process is, therefore, a vehicle for addressing the needs of different stakeholders and for including many people who have never before had a voice in decision making. In Honduras, stakeholder consultations are increasingly becoming a standard for developing legislation in the forestry sector.

Enhanced capacity to address illegality in the forest sector

The VPA process is strengthening the capacity of representatives from Government, the private sector, civil society and indigenous peoples to work together to address illegality in the Honduran forest sector. Dedicated regional platforms built the capacity of local stakeholders to engage with the VPA process.

More transparency

Honduras has expressed an explicit desire to use the VPA to increase transparency in the forest sector. Like VPAs negotiated in other countries, the Honduras VPA includes an annex on public disclosure of information that lists the information the Government commits to making publicly available. Through the VPA process, Honduras is already assessing tools to enhance transparency.

Legal reforms and improved legal clarity

The VPA process in Honduras is providing opportunities to make legal compliance and law enforcement much clearer, as well as to identify overlaps, gaps and contradictions in the current legal framework.

Next steps

Sign and ratify the VPA

In June 2018, the EU and Honduras initialled the VPA to indicate that both Parties confirm that the wording contained in the document is the wording they have agreed. The Agreement was signed in February 2021, and later that year, ratified by both Parties. The Agreement will enter into force in the near future.

Implement the VPA

The VPA will enter into force after the EU and Honduras have ratified it. Both Parties need to officially notify each other that they have ratified the VPA. The EU and Honduras will establish a Joint Implementation Committee (JIC) to oversee implementation of the VPA. The two Parties have agreed interim governance arrangements to maintain their close cooperation before the entry into force of the VPA and to prepare for its implementation. For example, they have established a pre-JIC that oversees the carrying out of next steps for implementation of the process.
In 2019, the Parties agreed to set up the Administrative and Technical Secretariat of the VPA. That same year, the Parties also developed and approved the JIC communication strategy.
Honduras will need to revise and/or issue new legislation to realise the commitments of the VPA. Honduras will also need to develop the timber legality assurance system described in the VPA and build capacity to operate the system.
Honduras has committed to engage all stakeholders in the implementation of the VPA just as it has done during the negotiations.

Trade in FLEGT-licensed timber

When a joint EU-Honduras evaluation concludes that the Honduran timber legality assurance system is fully operational as described in the VPA, the joint implementation committee can propose that Honduras begin to issue FLEGT licences. Once a decision is made to commence FLEGT licensing, the Parties will follow their respective internal processes, including legislative measures, such as amending the FLEGT Regulation on the EU side.
Once FLEGT licensing begins, a valid FLEGT licence must accompany all exports to the EU of Honduran timber-based products listed in Annex I of the VPA. EU customs officials will deny entry to any products covered by the VPA that arrive without a valid FLEGT licence.

Independent market monitoring

The European Commission has appointed the International Tropical Timber Organization (ITTO) as the independent market monitor for all VPA countries. The independent market monitor will assess the trade in timber products between Honduras and the EU, and the impacts of FLEGT licensing on this trade.

Frequently asked questions about the Honduras – EU VPA

How was the VPA negotiated?

The European Commission’s Directorate General for International Cooperation and Development negotiated on behalf of the EU. For Honduras, the negotiation was led by the Honduran Forest Administration (known as Forest Conservation Institute or by its Spanish acronym, ICF), with support from 16 public institutions represented in a dedicated inter-ministerial FLEGT-VPA Steering Committee, which was set up in November 2014. In May 2018, the Steering Committee members signed a joint memorandum of understanding through which they committed to actively participate in the implementation of the VPA. A broad range of Honduran stakeholders also played active roles in the VPA negotiations.

What has been the role of stakeholders in the VPA process?

The VPA has acted as a catalyst for stakeholder dialogue. When negotiations began, coordination among different stakeholder groups, and sometimes even within stakeholder groups, was limited. The political crisis of 2009 had led to broad mistrust and severe polarisation. The negotiations helped overcome such challenges and resulted in constructive dialogue. Stakeholder consultation has included seeking comments on, and approval of, the VPA text and its annexes.

Private sector

The private sector has been involved on the VPA from the outset, through their main timber trade association, AMADHO (Asociación de Madereros de Honduras). Agro-forestry groups such as the Federation of Honduran Agroforestry Producers (FEPROAH) and the Honduran Agro-forestry Cooperatives Federation (FEHCAFOR) have also been actively involved from the beginning of the negotiations.
Engagement has extended to small-scale forest owners, who have used the VPA to start working in a more coordinated manner through the establishment of a professional association. In addition, small-scale producers and entities have also been involved in the process, albeit with more limited participation than other stakeholders.
The contribution of these private sector representatives has been particularly key in highlighting challenges they encounter in administrative procedures. More specifically, they have shared reflections on how to eliminate unnecessary bottlenecks that currently hamper the sector.
These representatives have also played a key role in defining the VPA indicators related to facilitating trade, and in developing an efficient bureaucratic system to run the sector.

Indigenous peoples

Honduras is the only VPA country that actively engaged indigenous peoples as a distinct stakeholder group in the national VPA negotiation committee.
The annex that relates to the definition of timber legality directly addresses issues related to indigenous peoples’ rights.
The legality definition of the VPA also includes a reference to a Honduran law to be adopted that will outline the obligation to seek Free, Prior and Informed Consent (FPIC) from indigenous peoples and local communities.

Civil society

A broad range of Honduran civil society organisations were formally represented on the VPA negotiation committee. This included those based in the capital, Tegucigalpa, and in timber-producing regions across the country.
Civil society organisations have been instrumental in moving the VPA negotiations forward. This is particularly praiseworthy given the extent of political divisions within Honduras.

When will FLEGT licensing start?

After the entry into force of a VPA, there is a period of intense technical work to establish all systems and procedures required for its implementation. FLEGT licensing will begin only after a joint assessment by Honduras and the EU confirms that the Honduran timber legality assurance system has been fully operationalised and fully meets the requirements described in the VPA.

How do the EU and Honduras oversee VPA implementation?

Once the VPA enters into force, Honduras and the EU will establish a Joint Implementation Committee (JIC) to oversee implementation of the Agreement. Honduras and the EU have agreed interim governance arrangements to maintain their close cooperation before the entry into force of the VPA and to prepare for its implementation. For example, they have established a pre-JIC that oversees the carrying out next steps for implementation of the process.

Active participation of a broad range of stakeholders is key to effective VPA implementation. The VPA text explicitly mentions this ample level of inclusiveness and the need to conduct regular consultations.

What products does the Honduras-EU VPA cover?

Annex I of the VPA lists the products the Agreement covers. They include the five obligatory products under EU FLEGT Regulation (logs, sawn timber, railway sleepers, plywood and veneer) and 14 additional products selected by Honduras and based on a review of data from selected official sources. The Honduran law also prohibits the export of certain timber products, in particular roundwood from broadleaf species. In addition, in 2013, Honduras consulted a range of forestry sector operators about the timber products that should be included in the VPA. Their views have also been taken into account when deciding which products the VPA should cover.

The VPA timber legality assurance system and related regulations will apply to these products that Honduras exports (to the EU and other markets) or which are destined for the domestic market. However, only exports to the EU will receive a FLEGT licence.

The timber legality assurance system will not cover timber in transit between Honduras and other countries, or confiscated timber.

How important is the trade in timber products from Honduras to the EU?

The EU is a currently not a major market for timber products from Honduras. However, Honduras has expressed an interest in increasing its exports to the EU and sees the VPA as a good means to achieve this goal.

How much of Honduras’ timber production does the VPA cover?

Once operational, the VPA timber legality assurance system will cover all timber and timber products listed in Annex I of the Agreement, which encompass the large majority of products acquired or in circulation in Honduras (see above). This includes wood and timber products imported into Honduras.

How useful is the VPA, given that most of Honduras’ timber exports go to markets outside of the EU?

The VPA timber legality assurance system and related regulations will apply to all export markets, as well as the domestic market.

With this commitment, the control and verification of operations will be the same for all timber and timber products produced, acquired and/or in circulation in Honduras. FLEGT licences, however, will be only issued to exports destined for the EU market.
FLEGT alone cannot stop trade in illegal timber, especially if major markets remain less regulated. Indeed, under the EU FLEGT Action Plan, the EU seeks to work with other major timber consumers to develop a more comprehensive framework to reduce imports of illegally harvested timber.
China, which is the world’s largest importer of tropical timber, is developing its own legality assurance system and there are efforts to link it to FLEGT under the EU-China Bilateral Coordination Mechanism on Forest Law Enforcement and Governance (FLEG).
Other markets have implemented or are designing measures to eradicate illegal timber from their imports. These markets include the United States, Australia, Japan and South Korea.

What is the Honduras Timber Legality Assurance System?

The core of the VPA describes a national timber legality assurance system (whose Spanish acronym is SALH), which will ensure that timber products are verified to be legal according to specified requirements for all stages of the supply chain, from the forest or the point of import to the point of final sale or export.

What is a FLEGT licence?

A FLEGT licence is a licence issued by a timber-producing country that has implemented a Voluntary Partnership Agreement with the European Union. The licence attests to the legality of the timber or timber products. When Honduras’s timber legality assurance system is fully working as described in the VPA, Honduras will issue FLEGT licences for timber bound for the EU.

FLEGT-licensed timber products are deemed to meet the requirements of the EU Timber Regulation, which prohibits EU importers and domestic producers from placing illegally harvested timber and timber products on the EU market.

Until Honduras issues FLEGT licences, what requirements must its timber meet to enter the EU market?

Until the start of FLEGT licensing, timber products Honduras exports to the EU will have to go through the normal due diligence process under the EU Timber Regulation (EUTR). The EUTR prohibits the placing on the market of illegal timber and requires companies placing timber on the EU market to assess and mitigate the risk of illegal timber entering their supply chain. Once FLEGT licensing starts, FLEGT-licensed products automatically meet the EUTR requirements, meaning that no due diligence is required.

How does the VPA define legally produced timber?

The VPA defines ‘legally produced timber’ as timber products harvested or imported and produced in accordance with legislation of Honduras, as set out in the legality definition and other relevant provisions of the VPA. In the case of imported timber, it means timber products harvested, produced and exported in accordance with relevant legislation of the country of harvest (covering rights to harvest, forestry activities, taxation and fees, and trade and customs). The laws that need to be observed include those related to the forest sector, and those related to environmental, economic and social issues.

The VPA legality definition itself sets out the core requirements of legislation applicable to timber in Honduras in the form of principles, criteria and indicators. Timber and timber products must comply with all elements of the legality definition to be considered to have been legally produced.

The principles included in the VPAs are:

Land ownership rights and land tenure of forest areas
Rights of the indigenous and Afro-Honduran peoples living in forest areas
Compliance with the laws and regulations on forest management and the harvesting, transport and industrialisation of, and trade in, timber products by operators in the forestry sector
Labour and occupational health and safety obligations
Rules on international trade in timber products
Tariff and tax-related obligations

How does the VPA deal with the timber Honduras imports?

The VPA includes requirements for Honduran operators to exercise due diligence to assess the legality of timber and timber products they import.

What does ‘due diligence’ mean in the context of the VPA?

The concept of due diligence is an important element of the risk-based approach for the implementation of the VPA timber legality assurance system. Honduras will develop dedicated legislation to set out the details of this approach.

For products imported to Honduras, due diligence includes two main elements:

The prohibition to import illegal timber into Honduras, that is, timber that breaches the laws of the country of origin.
The importers’ responsibility to ensure the timber it is importing is legal. To do that, they must collect information about the timber, analyse the risks associated with it and mitigate them.

Do companies that hold voluntary certiﬁcation (such as FSC or PEFC) also have to follow the VPA timber legality assurance system?

Voluntary certification exists in Honduras in some broadleaved and pine forest areas for both management and chain of custody.

The Honduran Forest Administration will analyse the guidelines and criteria, and the verification procedures, used by voluntary certification schemes. The result of this assessment will dictate whether or not Honduras recognises these schemes as meeting the VPA legality requirements.

How does the VPA address conversion of forests, such as for agriculture?

The VPA established that timber products sourced from land subject to a duly authorised change in use may enter the supply chain. Cutting all the trees on any area is allowed:

In forests affected by natural disasters, pests or diseases.
In areas where public or private infrastructure is being built, subject to an approved Environmental Impact Assessment.
In agricultural lands for which the owner requests a land-use change, subject to an approved Environmental Impact Assessment.

How will the impacts of the VPA be monitored?

The EU and Honduras made a joint commitment to monitor the social, economic and environmental effects of the VPA. Impacts will be assessed to minimise any potential negative impacts. Under the VPA, the EU and Honduras commit to take reasonable steps to ensure mitigation is effective and may agree to take additional measures when necessary.

How will the VPA beneﬁt Honduras?

The VPA is expected to bring economic, social and environmental benefits to Honduras.

The VPA should strengthen the market position of verified-legal timber products in the EU and elsewhere.
FLEGT-licensed timber will automatically meet the requirements of the EU Timber Regulation so will be exempt from any due diligence assessment process, saving time and money. This should increase EU importer confidence in timber products from Honduras and should make their products more attractive compared with equivalent products without FLEGT licences.
The VPA will increase Government revenues by blocking access to export and domestic markets for illegal operators who do not pay appropriate taxes and fees.
The VPA will make it easier for Honduras to sustainably manage forest resources, notably through better monitoring and data for sustaining yield.
The VPA will raise the international profile of Honduras as it will highlight its efforts to improve governance in one of its main economic sectors.

What benefits have already arisen from the VPA process?

Several positive developments have emerged during the VPA negotiations:

Stakeholder participation:Government institutions, civil society organisations, indigenous peoples, agroforestry groups and the private sector were actively engaged throughout the VPA negotiations. This included regular meetings and the establishment of dedicated bodies such as regional consultative platforms. The result has been a process defined by consultation and consensus.
Indigenous peoples’ representation:Honduras is the only VPA country in which indigenous peoples were officially represented in the VPA negotiating committee. This has given them an opportunity to express their needs and advocate for their rights.
Trust among stakeholders:The VPA has enabled previously polarised stakeholders to build trust and open an honest dialogue about the challenges facing the forest sector in Honduras. It has instigated them to find common solutions to shared problems.
Consolidation of legislation and regulations:Honduras has taken steps to consolidate the legislative and regulatory framework. This has included a review of the forest law to identify elements in it that need amending or strengthening.
Land rights: the Honduras VPA has opened up discussions about land rights and land allocation, a complex and often controversial issue in the country.

How can the VPA address corruption?

The VPA establishes procedures for reporting any problems, including corruption, related to the implementation of the timber legality assurance system.

The VPA proposes the engagement of a broad range of stakeholders in the implementation phase. They will be consulted regularly basis and all views will be taken into account. Such broad participation will make corruption more difficult as stakeholders jointly safeguard the robust implementation of the VPA and raise concerns to have them jointly addressed.

The VPA also includes a mechanism to handle complaints, as well as provisions for access to public information and increased transparency. These elements will jointly contribute to strengthening the rule of law and citizen participation.

Is the VPA fair to small-scale operators in the sector?

Yes. The definition of operators in the forestry sector includes categories of small-scale operators such as rural communities and community groups. They are recognised as having their own needs and requirements. The VPA is also explicit about the need to create safeguards for vulnerable groups so potential adverse effects are mitigated. Vulnerable groups include small-scale operators, indigenous and Afro-Honduran peoples, local communities and other forest-dependent people.

Forest areas on land traditionally owned by indigenous and Afro-Honduran peoples are officially recognised and respected as such by the State. This is in line with national laws and the Indigenous and Tribal Peoples Convention, also known as the International Labour Organization (ILO) Convention 169, whether or not they hold the title deed.

How does the VPA protect indigenous peoples’ rights?

The Honduras-EU VPA is the first VPA to have recognised indigenous peoples as a distinct stakeholder group. Indigenous peoples were represented in the negotiating committee and put forward their proposals to address their specific needs and challenges. They are now engaged in the implementation of the VPA.

One of the principles underpinning the VPA legality definition is specifically related to indigenous and Afro-Honduran peoples. It requires the State of Honduras to comply with ILO Convention 169 in terms of recognising their rights to be consulted about forest-related activity in lands belonging to them.

What will the FLEGT licence from Honduras look like?

The FLEGT licence looks like the template in Annex IV of the Honduras-EU Voluntary Partnership Agreement (VPA).

What is the link between FLEGT licensing and CITES in Honduras?

The Honduran timber legality assurance system will subject timber from species that are subject to the provisions of the Convention on International Trade in Endangered Species (CITES) to the same control and verification procedures as other timber.

The CITES Management Authority of Honduras will issue CITES permits for shipments into the EU that contain only timber that are subject to the provisions of CITES. In line with the FLEGT Regulation, timber and timber products which are subject to the CITES provisions shall be exempted from FLEGT licensing requirements. Shipments which do not contain timber subject to the provision of CITES shall require a FLEGT licence.

How will FLEGT licences be issued?

FLEGT licences shall be granted for each export shipment of timber that is listed under Annex I (which defines the product scope) of the VPA and exported to the EU market, provided that such shipment and the exporter have met with all the requirements set out in the legality definition and supply chain control and verification under Honduras’s timber legality assurance system. FLEGT licences shall be granted by a Competent Authority assigned by the Government of Honduras (see below).

What is the Licensing Authority?

The licensing authority in Honduras is the Honduran Forest Administration (known as Forest Conservation Institute or by its Spanish acronym, ICF), through the FLEGT Licensing Unit. The ICF’s Legality Verification Unit is responsible for verifying legal compliance.

What does VPA implementation entail?

Honduras will need to revise or issue new legislation to realise the commitments of the VPA. It will then need to develop the timber legality assurance system elements and build capacity to operate the system.

Several Government agencies will be involved in the enforcement of the timber legality assurance system. They include the Honduras Forest Administration (ICF), the Agrarian National Institute (Instituto Nacional Agrario or INA), the Land Titling Authority (Instituto de la Propiedad), the Ministry of Energy, Natural Resources, Environment and Mines (MiAmbiente), the Revenue Administration System (Sistema de Administración de Rentas or SAR), the Secretariat for Labour and Social Security (Secretaría del Trabajo y Seguridad Social or STSS), the Honduran Institute for Social Security (Instituto Hondureño de Seguridad Social or IHSS) and the regional governments (Municipalidades). Other official institutions, such as the National Police, the Armed Forces, the judiciary or the Ombudsman, will also play a role in ensuring the effective implementation of the VPA.

VPA implementation will also require continuation of consultation with stakeholders in Honduras, continued involvement of the EU delegation, external technical assistance and support, and for Honduras to mobilise resources to implement the timber legality assurance system.

Before the FLEGT licensing scheme can become operational, the EU and Honduras will undertake a joint assessment to confirm that the timber legality assurance system is operating as described in the VPA.

Who has oversight of the VPA? What if problems emerge?

A Honduras-EU Joint Implementation Committee (JIC) will oversee implementation of the VPA and will handle any issues as they arise. In the interim, a pre-JIC maintains the close cooperation between the two Parties before the entry into force of the VPA and prepares for its implementation.

The Honduran Forest Administration (ICF) will also enter into cooperation agreements with civil society organisations interested in the functioning of the mechanism employed by the ICF to handle complaints, follow them up and publish final reports on investigation of the complaints in a coordinated manner.

The JIC will review and approve the reports from the organisation acting as the independent auditor, examine any complaints on the functioning of the FLEGT licensing system, and manage the implementation of the recommendations on the territory of each Party.

If any breaches of the timber legality assurance system occur, a devoted assessment will determine the nature of the breach. If it is an administrative breach, the ICF will issue an administrative sanction. If it is a crime, it will follow the penal judiciary channels.

Honduras currently has various independent oversight mechanisms in place. These include Forest Consultative Committees and a civil society-led Independent Forest Monitoring initiative. They constitute one important element of a system of checks and balances.

Who is the independent auditor?

Honduras will appoint the independent auditor following discussions with the EU, through the Honduras-EU Joint Implementation Committee.

Are the reports of the independent auditor public?

Once independent auditing starts, summaries of the reports will be made publicly available.

What happens when the legality assurance system fails to detect illegal timber?

If and when illegal timber is shown to have passed through the timber legality assurance system undetected, this will provide opportunities to strengthen the system to avoid a reoccurrence of the breach.

The VPA is part of a holistic yet gradual improvement of forest governance in Honduras.
The VPA will not eliminate illegal logging overnight.
The timber legality assurance system is adaptive and subject to continuous improvement, informed by regular reports from internal controls and evaluations, independent observers and the VPA independent evaluator.
The Honduras-EU Joint Implementation Committee oversees the VPA and will take remedial actions if systematic failures are identified.

Is the VPA fair to small-scale operators in the sector?

The VPA process has opened up spaces for small-scale operators to participate in forest policy. It has also provided support to help small-scale operators comply with the new market requirements.

Small and medium operators in Cameroon are working to comply to the legal framework and with the VPA. The VPA has strengthened the capacity of the small private sector. This has included trainings on market requirements and linking small operators from Cameroon with importers in Europe. See: Legal timber trade with EU can be big business for small companies.
As well as needing to provide timber that is verified as legal, small and medium operators face additional challenges. The legal requirements for trade in timber and timber products are often a great burden for small operators. EU importers also demand large quantities of timber, which must be of high quality and delivered in a timely manner. Through the VPA, small and medium operators have established a timber trade federation that represents them and links them with EU importers.

Video: Cameroonians with small timber businesses visit Belgium to discuss trade in legal timber with the EU. This video is also available in French.

How does the VPA protect community rights?

Civil society representatives actively engaged in negotiating the VPA and pushed for the recognition of community rights within the VPA. As a result, the VPA contains specific provisions to respect and protect the rights of communities. In addition, the VPA has opened up spaces for communities and civil society to work with the Government of Cameroon to improve the recognition of community rights in Cameroonian laws and policies related to the forest sector.

The Cameroon and EU commitment to protect and promote community rights is reflected in Article 17 of the VPA on social safeguards. This is a commitment by both parties to monitor the impacts of the VPA implementation in the long term including its impact on livelihoods and vulnerable groups.
The VPA timber legality assurance system includes the obligation by operators to respect the payment of taxes and social agreements made with communities within its areas of work. Until 2016, a 10% share of forest taxes was dedicated to the communities. This share was sustained through improved collection of fiscal revenue. There is an ongoing discussion in Cameroon for the restoration of the 10% of forest taxes to local communities. In addition, the system contains special legality standards for timber from community forests (under State management). The VPA commits to develop an additional legality standard for communal forests and for community forests (without State management) during the operationalisation of the system.
During VPA negotiations, insufficiencies in Cameroonian law around the rights of communities and indigenous peoples came to light. The Government responded by outlining a reform process in the VPA to address them and is currently revising its forest law.

Video: The director of the Cameroonian NGO APED explains that FLEGT is an opportunity to challenge and question the Government about taking community rights into account.

Communities were not directly represented during VPA negotiations, but a commitment was made to involve them during the implementation of the Agreement. The national monitoring committee (NMC), central to the implementation of the VPA, has one seat each for NGOs, local communities, indigenous peoples and representatives of communal forests. Representatives of civil society and communities have also been regularly invited to attend the VPA joint monitoring committee meetings.
A recent assessment of voluntary certification in VPA countries seems to indicate that certified companies have established dynamic relations and regular contact with local communities. Similar positive results have not been reported in the context of the VPA because the implementation of the VPA is still ongoing.

How does the VPA deal with the rights of indigenous peoples?

The Cameroon – EU VPA mentions the rights of indigenous peoples and takes specific measures to protect them.

The preamble to the VPA refers to the vital role of indigenous peoples and other local communities in environmental management and development.
Under the VPA timber legality assurance system, operators are required to pay taxes to and to respect the agreements made with communities, including indigenous peoples, within its areas of work. That means that the 10% share of forest taxes (RFA) which was until recently dedicated to the communities can be sustained through improved collection of fiscal revenue. There is an ongoing discussion in Cameroon for the restoration of the 10% of forest taxes to local communities.
During VPA negotiations, insufficiencies in Cameroonian law around the rights of indigenous peoples came to light and Cameroon responded by outlining a reform process in the VPA to cover. Cameroon is currently revising its Forest Law.
The Cameroon government’s commitment to protect indigenous peoples is also reflected in Article 17 of the VPA on social safeguards. This is a commitment by both parties to monitor the impacts of the VPA implementation in the long term including its impact on indigenous peoples, in order to mitigate any potential adverse effect.
In addition, the VPA has opened up spaces for participation for indigenous peoples. The national monitoring committee (NMC), central to the implementation of the VPA, has one seat for indigenous peoples. Representatives of indigenous peoples have also been regularly invited to attend the VPA joint monitoring committee (JMC) meetings.

How does the VPA address timber produced from the conversion of forests to other land uses, such as for agriculture?

The VPA timber legality assurance system is intended to ensure that all timber and timber products can be traded nationwide or exported only if they have met legal obligations. The VPA joint monitoring committee (JMC) is tasked with ensuring that the VPA timber legality assurance system remains credible. In this context, the challenges posed by timber from forest conversion is an issue that the JMC monitors.

How has the VPA responded to the claims around the Herakles Farms (SGSOC) concession and what were the outcomes?

The VPA has offered a political avenue for stakeholders to raise concerns over illegalities linked to the oil palm plantation project of the US firm Herakles Farms (SGSOC). This case has also helped highlight and understand credibility issues that conversion timber poses for the VPA.

The VPA joint monitoring committee (JMC) and Council have followed closely the actions of Herakles Farms. Cameroon and the EU shared key information on this project, including the presidential decrees n°416, 417 and 418 of 25 November 2013 on the attribution of the provisory agricultural lease to SGSOC.
The parties first discussed the problems linked to SGSOC during the third meeting of the VPA Council (July 2013), when Cameroun announced that the initial allotment of 73 000 hectares (awarded incorrectly) had been reduced to 20 000 hectares in a less contentious area. At the fifth Council meeting (December 2013), the Cameroon administration recognised the key role played by civil society in the redefinition of the Herakles Farms project.
Herakles Farms abandoned operations on 29 May 2015 and closed its offices. After the withdrawal of the US-based firm, SGSOC continued to operate the 20 000 hectares palm oil plantation. SGSOC’s land lease was granted for three years, and runs until November 2016.

EU reactions to the challenges highlighted by the Herakles Farms case:

In reaction to this case, in March 2016, the EU launched a call for proposals to support responsible governance of land tenure through promoting the Voluntary Guidelines on the Responsible Governance of Tenure (VGGT). With this programme the EU seeks to support Cameroonian stakeholders to address the challenges of land use planning and land governance in respect of community rights.
The Herakles Farms case highlighted the security challenges for individuals and communities affected by projects that they oppose. Nasako Besingi, a local community leader winner of several international awards for his peaceful protests against SGSOC palm oil project, was sued by the company and convicted for defamation and propagation of false publications. This issue was brought by civil society organisations in the VPA process. The need to improve the protection of human and environmental rights defenders such as Nasako motivated the EU to fund a three-year project ‘Greening the respect for human rights in the Congo Basin’ (Verdir le respect des droits de l’Homme dans le Bassin du Congo). This project provides support, including legal assistance, to human rights defenders in the Congo Basin, including Cameroon.

What if problems emerge? Who has oversight of the VPA?

Two joint (EU-Cameroon) structures oversee implementation of the VPA and will respond to any concerns about problems in implementation as they arise: the Joint Monitoring Committee (JMC) and the Joint Implementation Council. In other VPAs. Implementation therefore improves as it proceeds. See Article 19 and Annex XI of the VPA.

The VPA gives independent observers, civil society organisations and any interested stakeholder the space to provide information to the independent auditor if the timber legality assurance system is not working as foreseen or if companies do not comply with the Cameroonian legality standard. Complaints can also be put on the agenda of the JMC.
The independent auditor in the Cameroon-EU VPA will regularly assess whether the timber legality assurance system functions as described in the VPA and will report to the Joint Implementation Council via a report to the JMC. See Annex VI of the VPA.

How does the VPA address grievances?

The VPA includes a mechanism to resolve grievances. Under the agreement, stakeholders can raise issues with the Cameroon-EU Joint Monitoring Committee (JMC) through the independent auditor or by putting matters of concern on the agenda for JMC meetings. See Annex XI.c of the VPA.

Who is the independent auditor?

The independent auditor is an organisation (with auditing qualifications following ISO rules) whose role is to regularly assess whether the timber legality assurance system functions as described in the VPA. The independent auditor reports findings to the Cameroon-EU Joint Implementation Council via a report submitted to the VPA Joint Monitoring Committee (JMC). A public summary of the reports will be made available.

An annex in the VPA describes the status, skills and tasks of the independent auditor. The team assigned to carry out the independent audit shall not be directly engaged in the implementation of the VPA timber legality assurance system and shall demonstrate auditing experience. See Annex VI of the VPA.
In 2012, Cameroon recruited an independent auditor in consultation with the EU. An independent auditor was in place between 2013-2014.
Due to the VPA’s timber legality assurance system not being in place during its first period of activity, the independent auditor did not carry out any audit of the system. Its activities focused on strengthening the implementation of the legality assurance system before the issue of the first FLEGT licences. During 2013-2014, the independent auditor developed audit procedures, assessed the conformity of documents related to the allocation of forest titles (required as verifiers by the VPA’s legality grid) and made an assessment of procedures and volume of confiscated timber in Cameroon. These three tasks were foreseen under the terms of the VPA.
The independent auditor shared its findings with the JMC. In 2014, the JMC set up a multistakeholder working group to propose measures to ensure the compliance of existing forest titles with the VPA. Among the actions to be taken, Cameroon and the EU foresee work to review the legality grids to assess whether amendments are necessary. Until decisions are taken, Cameroon has decided to delay the issuance of certificates of legality, a procedure foreseen in the VPA that was underway.
The parties will appoint a new auditor before FLEGT licences are issued. A new forest governance project under the 11th European Development Fund’s (EDF) National Indicative Programme (2014-2020) for cooperation between Cameroon and the EU includes a financial provision for an independent auditor.

Are the results of the independent audits available?

Once independent audits start, public summaries of the reports will be available on the VPA website of the Cameroonian Ministry of Forests and Wildlife (MINFOF).

What has been the result of the audits carried out by the independent auditor and what where the outcomes?

The VPA independent auditor in place between 2013-2014 assessed the conformity of documents related to the allocation of forest titles and made an inventory of confiscated timber in Cameroon. As the VPA’s timber legality assurance system was not in operation during the period of activity of the independent auditor, no audit of the system was carried out.

The audit on the existence, availability and reliability of documents related to the allocation of forest titles (required as verifiers by the VPA’s legality grid) highlighted the failure of the Cameroonian Government to systematically file documents required to verify legal compliance.
The VPA Joint Monitoring Committee (JMC) set up a multi-stakeholder working group in 2014 to propose measures to ensure the compliance of existing forest titles with the VPA. Among the actions to be taken, Cameroon and the EU foresee work to review the legality grids to assess whether amendments are necessary.
Until decisions are taken, Cameroon has decided to delay the issuance of certificates of legality, a procedure foreseen in the VPA that was underway, for forest operators affected by the findings of the independent auditor.
The assessment of seized timber by the independent auditor has demonstrated that the implementation of MINFOF procedures for seizure, auctioning and release of seized timber is inconsistent across the different regions. This leads to significant opacity in the documentation of related timber flows.

What is the role of independent observers in the VPA?

During the VPA negotiations, Cameroonian stakeholders from Government, the private sector and civil society decided that independent observation has a role to play to monitor forest governance in the context of the VPA, but that it should not be a compulsory part of the legality assurance system.

The Cameroon-EU VPA does not foresee independent observation to have a role in the timber legality assurance system, but it notes that independent observation by civil society is a source of information for forestry control and compliance with legality to be used within the VPA system, for example by the independent auditor.
Cameroon is the country with longest experience in formal independent observation in the world. Formal independent observers were active in Cameroon between 2000-2013. A new forest governance project under the 11th European Development Fund’s (EDF) National Indicative Programme (2014-2020) for cooperation between Cameroon and the EU includes a financial provision for a formal independent observer.
Cameroonian civil society has carried out self-mandated (external) independent observation activities for more than two decades. Self-mandated independent observation by civil society grew considerably after 2010, partly as a result to the ratification of the VPA and support projects to operationalise its commitments.
In 2014, national civil society set up a network of independent observers, the standarised system for external independent observation (Système normalisé d’observation indépendante externe – SNOIE), to provide information to the competent administrations in charge of forest controls. The purpose of the SNOIE is to formalise the framework of external independent observation by civil society and enhance its reliability and credibility. At its 15 December 2015 meeting, the VPA Joint Implementation Council recognised the role of civil society independent observation in the implementation of the Cameroonian National Forest and Wildlife Law Enforcement Strategy. See the meeting minutes.

What complaints have independent observers made and what were the outcomes?

Since 2014, after over a decade of formal independent observation, national civil society has been organised in a network of independent observers. The standarised system for external independent observation (SNOIE) provides information to the competent administrations in charge of forest controls.

Early 2016, the reports of the network of independent observers allowed the Ministry of Forests and Wildlife (MINFOF) to take sanctions against two companies operating illegally in the east and littoral regions of Cameroon.
In the first quarter of 2016, the MINFOF suspended the licences of four logging companies (SITAF, SCDC, South & FILS and SOFIE), issued 34 other companies with warning notices and generated 54.2 million FCFA (EUR 82.6 million) in fines related to illegal activities in the forest sector. These sanctions were taken after a mission of the Cameroonian National Forest Law Enforcement Brigade following civil society findings based on independent observation. Cameroon committed to the publication of such information in the VPA. The quarterly register presents information on cases of illegality in the forest sector and on sanctions imposed against companies.

What will happen to FLEGT licensed timber that is shown to be illegal?

If a FLEGT-licensed shipment is reported to be illegal in Cameroon before it leaves the country, the Cameroonian licensing authority shall cancel the licence and prevent the corresponding shipment from leaving the country.
If a FLEGT-licensed shipment is proven to be illegal in Cameroon after it leaves the country, the licensing authority would inform the relevant EU competent authority. If the licensing authority can contact the EU competent authority before the shipment is released by customs in the EU, the shipment would be seized and would not be placed on the EU market.
Enforcement actions would be taken against the companies involved in the production and trade of the related timber in Cameroon. Authorities in the EU may also take action against the importers.
If the licensing authority can only contact the relevant EU competent authority after the FLEGT licensed timber has been released by customs in the EU, the competent authority would investigate and when non-compliance is confirmed, Cameroon and the relevant EU Member State may take enforcement actions against implicated companies, including prosecution and timber seizure.

What happens when the legality assurance system fails to detect illegal timber?

If and when illegal timber is shown to have passed through Cameroon’s timber legality assurance system undetected, this will provide opportunities to strengthen the system to avoid a reoccurrence of the breach.

The VPA is part of a holistic yet gradual improvement of forest governance in Cameroon.
The VPA will not eliminate illegal logging overnight.
The timber legality assurance system is adaptive and subject to continuous improvement, informed by regular reports from internal controls and evaluations, independent observers and the VPA independent audit.
The VPA Joint Monitoring Committee (JMC) and the Joint Implementation Council oversee the Agreement and will take remedial actions if systematic failures are identified.

About the VPA Africa – Latin America Facility

The VPA Africa – Latin America Facility supports the implementation of the EU FLEGT Action Plan with a focus on Voluntary Partnership Agreements (VPAs). The Facility contributes to combating illegal logging and strengthening forest governance while encouraging sustainable economic development in countries that produce or process timber and export to the EU. The Facility is hosted by the European Forest Institute (EFI) and was established in November 2019.

Disclaimer

This website has been produced with the financial assistance of the European Union. The views expressed herein can in no way be taken to reflect the official opinion of the European Union.