timbertrade

Timber trade is the international exchange of wood and wood products, including logs, sawnwood, veneers, plywood, wood pulp and paper, and biomass. It involves actors ranging from forest owners and harvesters to traders, processors, exporters, importers, and retailers, with goods moving by sea, rail, and road.

Trade flows reflect patterns of demand for construction, housing, packaging, and consumer goods. Regions with large forest areas or strong manufacturing sectors dominate production and consumption, with major exporters supplying markets in other continents and vice versa.

The trade is regulated to address legality and sustainability. The European Union Timber Regulation requires due diligence to ensure timber placed on the EU market is legally harvested. The United States Lacey Act prohibits import of timber taken in violation of local laws. In addition, FLEGT licenses certify legality for timber from partner countries under EU agreements, facilitating access to European markets. Wholesale and retail buyers increasingly apply due diligence and risk assessment to avoid illegal timber.

Certifications and standards underpin market preferences for sustainable wood. Independent schemes such as the Forest Stewardship Council (FSC) and the Programme for the Endorsement of Forest Certification (PEFC) provide forest management and chain-of-custody certifications to verify responsible sourcing.

Challenges and trends. Illegal logging and illegal timber trade contribute to deforestation and social issues, while supply chains can be opaque and unevenly enforced. Market responses include greater traceability, certification, and compliance with legality requirements, as well as growing demand for certified and engineered wood products supported by digital tracking and monitoring technologies.