Analysis of trade data in the latest IMM Annual Report demonstrates that the goal of closing world markets to illegal wood products is already well advanced – even if recent steps towards regulation in China are discounted for now. In 2019, 66.5% (US$27.6 billion) of the total value (US$41.5 billion) of recorded tropical wood product exports worldwide were destined for countries with regulatory measures to eliminate illegal trade (Figure 1). This compares to 62.2% of tropical trade in 2018. The rise in the proportion of tropical wood products destined for regulated markets in 2019 was due primarily to the decline in imports by China, considered here an unregulated market, while US imports of wood products from tropical countries, particularly Viet Nam increased sharply during the year.
Figure 1: Value of global trade in tropical wood products, 2015 to 2019, by consumer country regulatory status.
The proportion of wood product exports destined for regulated countries was even higher for VPA partner countries (Figures 2 and 3). In 2019, 79% of all wood products exports by FLEGT licensing and VPA implementing countries was destined for regulated markets. In addition to EUTR, which accounted for 12% of total exports by FLEGT licensing and VPA partner implementing countries in 2019, a large share of exports went to destinations regulated by the US Lacey Act (42%), Japan Clean Wood Act (13%), Republic of Korea Sustainable Use Act (7%) and Australian Illegal Logging Prohibition Act (2%).
In 2019, the share of exports to regulated countries was particularly high for Indonesia (72%) and Viet Nam (85%). The share of exports to regulated markets was lower, but still significant, for VPA implementing countries in Africa (53%).
Figure 2: Value of global trade in tropical wood products in 2019, by FLEGT VPA status and consumer country regulatory status.
Source: IMM analysis of STIX trade data and national legislation (*legislation still in draft at end of 2019)
As=Asian partners, Af=African partners, Am=Latin American partners
Figure 3: Share of global trade value in tropical wood products in 2019, by FLEGT VPA status and consumer country regulatory status.
Source: IMM analysis of STIX trade data and national legislation (*legislation still in draft at end of 2019)
As=Asian partners, Af=African partners, Am=Latin American partners
Around US$13.9 billion of tropical wood product trade in 2019, 33% of total recorded trade, was destined for countries without import regulations. More than half was destined for China (Figure 6.2.4).
Figure 4: Tropical wood product imports into unregulated markets, by main importers, 2019.
Source: IMM analysis of STIX trade data and national legislation