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NewsTimber Utilisation Contracts ratified by Parliament to facilitate trade

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Timber Utilisation Contracts ratified by Parliament to facilitate trade

Parliament on Thursday ratified eleven Timber Utilisation Contracts (TUCs), marking a pivotal step towards facilitating timber exploitation and trade in Ghana.

These TUCs, out of the initial nineteen submitted for ratification as mandated by the Constitution, enable Ghana to issue Forest Law Enforcement, Governance and Trade (FLEGT) Licences. These licences are crucial for exporting timber and timber products to the European market.

Ghana’s ratification of these contracts positions it as the first African country, and the second globally after Indonesia, to issue FLEGT Licences for timber products. This achievement underscores Ghana’s commitment to sustainable forest management and compliance with international trade standards.

The decision to ratify these TUCs follows the Cabinet’s approval on March 31, 2022, during its 26th meeting, to convert 156 timber concessions and permits into TUCs under Section 19 of Act 547. This legislative framework, effective since March 18, 1998, mandates that timber harvesting must be conducted under a valid TUC, replacing previous forms of timber rights under the Concessions Act of 1962 (Act 124).

“The conversion of these concessions and permits into TUCs represents a significant policy reform aimed at establishing a competitive and transparent system for allocating Ghana’s timber resources,” stated a government official familiar with the matter.

Section 19 of Act 547 stipulates that holders of existing timber rights before the Act’s implementation were required to apply for TUCs within six months. Despite the lengthy process spanning nearly 25 years, these conversions are now legally ratified by Parliament, aligning with European Union requirements and enhancing Ghana’s legal timber trade.

“This Parliamentary ratification marks the culmination of efforts to formalise timber rights in Ghana, signifying a pivotal moment in our sustainable forest management strategy,” affirmed a government spokesperson.

The ratification of these TUCs not only positions Ghana to meet its commitments under the Voluntary Partnership Agreement (VPA) with the EU but also strengthens efforts to combat deforestation and forest degradation.

These initiatives are integral to improving environmental governance and contributing to the achievement of Sustainable Development Goals (SDGs).

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