June 2020 Message from Lead Consultant
IMM publishes market update and survey results
IMM has released a full market update of trade between the EU, VPA partner countries and non-VPA competing countries. The analysis shows that Indonesian wood furniture is the biggest winner in the EU tropical timber market, while plywood, doors and deckings from Indonesia have lost ground. At the same time, imports from Vietnam were stable at a high level and there was a sharp shift to wood furniture in the product mix from Malaysia.
Among the African VPA implementing countries, Cameroon lost ground while RoC made gains. Imports from the African VPA negotiating countries Cote d'Ivoire and DRC declined and those from Gabon flatlined. South American VPA partners Honduras and Guyana showed contrasting trends.
The market update also includes commentary on current and expected impacts of COVID-19 on EU27+UK tropical timber imports.
Also newly released are first results of the IMM 2019 EU trade survey. The survey found that some 80% of respondents preferred handling FLEGT-licensed timber to EUTR due diligence. EUTR was found to still affect the EU market for tropical timber products, with 38% of respondents in 2019 reporting either small or big decreases in the share of tropical timber in their overall timber imports due to introduction of EUTR. No major changes were shown in 2019 in the overall level of awareness of the FLEGT VPA process in the European timber and related sectors, with continuing need for awarness-raising highlighted especially further down the supply chain.