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Twenty-first Report of Session 2019–21 Contents

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3Northern Ireland Protocol: Illegal timber arrangements4

These EU documents are legally and politically important because: it covers an area with which Northern Ireland must maintain alignment after the end of the post-Brexit Transition Period, but the UK and EU disagree on how the legality of timber imports into Northern Ireland from certain countries should be guaranteed. Action Write to the Minister. Draw to the attention of the Northern Ireland Affairs Committee, the Environment, Food and Rural Affairs Committee and Committee on the Future Relationship with the EU.

Overview

3.1Illegal logging has a negative impact on forests, and on the people who live in them and rely on the resources that forests provide. The EU Forest Law Enforcement, Governance and Trade (FLEGT) Action Plan encouraged trade in timber that is harvested legally and verified as such by partner countries. This system is governed by Voluntary Partnership Agreements (VPAs) between the EU and partner countries. Once a VPA has been agreed, partner countries can issue FLEGT licences to verify the legality of timber harvest.

3.2The Commission is proposing the conclusion, and signature, of a VPA between the EU and Honduras. While this will be the eighth such VPA to be concluded, only Indonesia has an approved licencing scheme and can issue FLEGT Licences.

3.3Under the terms of the Ireland/Northern Ireland Protocol annexed to the Withdrawal Agreement, Northern Ireland must continue to apply both the EU’s FLEGT Licencing Regulation5 and the EU Timber Regulation.6 In his Explanatory Memorandum, the Minister of State (Rt Hon. Lord Goldsmith of Richmond Park) acknowledges that the EU Regulation establishing the FLEGT licencing system will continue to apply directly in Northern Ireland after the Transition Period. The UK takes the view, however, that UK VPAs with partner countries will extend to Northern Ireland. As a consequence, the UK will need to negotiate with Honduras to replicate that country’s partnership agreement with the EU. That is in line, he says, with the UK’s wider commitment to replicating the EU’s VPAs with partner countries as they become able to issue FLEGT licences to ensure that UK timber traders can still import FLEGT-licenced timber.

3.4To date, adds the Minister, the UK has agreed and ratified a VPA7 with Indonesia (the only country currently capable of issuing FLEGT licences), and is in the process of agreeing a VPA with Ghana and will shortly be beginning work on a VPA with Vietnam. The Government has written to the remaining VPA countries — including Honduras — to express the UK’s continued commitment to FLEGT.

3.5The Minister also notes, in parentheses, that the UK’s position has not yet been expressly accepted by the EU. In fact, the European Commission is clear in a Brexit Preparedness notice8 that Northern Ireland would be covered by EU VPAs rather than UK VPAs. The Commission explains that, as imports of timber into Northern Ireland constitute imports into the EU for the purposes of compliance with the Protocol, such imports from a FLEGT licencing country will have to be accompanied by FLEGT licences issued by that country under the VPA with the EU.

Our assessment

3.6We note the difference of opinion between the Government and the Commission as to the application of EU VPAs to Northern Ireland. Clearly, it is a matter which requires swift resolution.

3.7In its preparedness notice, the Commission sets out its reasoning, notably that:

• in the Protocol, the EU and the UK have agreed that, insofar as EU rules apply to and in Northern Ireland, Northern Ireland is treated as if it were a Member State; and
• timber and timber products imported into Northern Ireland from a FLEGT licencing country will amount to imports into the EU and will have to be accompanied by FLEGT licences issued by that country under the VPA with the EU.

3.8The Commission presents its argument as a logical outcome of the agreement that the EU Timber Regulation and EU FLEGT Licencing Regulation continue to apply in Northern Ireland. From a wider perspective, the over-arching logic of the Protocol is to avoid the need for border checks on goods crossing the land border between Northern Ireland and the Republic of Ireland.

3.9On the other hand, the Government accepts its responsibilities under the Protocol but argues that Northern Ireland can be covered under UK VPAs as they will replicate EU VPAs. Even if the Commission accepted this statement of intent, we consider it possible that the EU might seek a legally-binding commitment in order to protect the integrity of its single market and avoid the need for checks on timber and timber products crossing from Northern Ireland into Ireland.

3.10We will seek further clarity from the Minister in response to the Commission’s preparedness notice and the nature of any commitment that the Government would be willing to give on replicating the EU’s VPAs.

Action

3.11Based on our assessment, we have written to the Minister, as set out below, to clarify the Government’s approach. We are copying our letter to the Northern Ireland Affairs Committee, the Environment, Food and Rural Affairs Committee and the Committee on the Future Relationship with the EU.

Letter from the Chair to the Minister of State (Rt Hon. Lord Goldsmith of Richmond Park), Department for Environment, Food and Rural Affairs

We have considered your Explanatory Memorandum (EM) on the above documents.

We wish to explore your position that Northern Ireland — which is required to maintain alignment with the EU’s FLEGT Licencing Regulation — should be covered by UK Voluntary Partnership Agreements replicating those that the EU has agreed with partner countries. You note, in parentheses, that the EU has not expressly accepted your position. In fact, the European Commission appears to take the opposite view — that Northern Ireland should be covered by EU VPAs with partner countries.

We would welcome your view on the logic set out by the Commission in its Brexit preparedness notice on this matter — i.e. that imports into Northern Ireland will effectively be imports into the EU as the UK and EU have agreed that insofar as EU rules apply to and in Northern Ireland (as the FLEGT Licencing Regulation does), Northern Ireland is treated as if it were a Member State; and that consequently the products will have to be accompanied by FLEGT licences issued by that country under the VPA with the EU. We ask that you explain clearly how the UK in respect of Northern Ireland could meet its obligations under the Protocol without applicable products being covered by EU VPAs.

From your EM, your argument appears to be based on the UK’s intention to replicate the EU’s VPAs with partner countries. Could you please spell out what form those commitments have taken and whether you would be willing to grant a legally-binding guarantee to replicate the EU’s VPAs?

The over-arching logic of the Protocol is, of course, to avoid the need for border checks on goods crossing the land border between Northern Ireland and the Republic of Ireland and so this is an important matter to resolve as soon as possible.

We look forward to your response within ten working days.

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