The trade of illegal timber, often from illegal logging, has severe environmental, social and economic consequences. The EU’s response to this problem came with the Forest Law Enforcement, Governance and Trade (FLEGT) Action Plan, with its specific goal to end illegal logging, thereby improving sustainability of forest resources. In March 2013, an additional step was taken by implementing the EU Timber Regulation (EUTR). The EUTR requires proof of timber’s origin and legality to ensure that no illegal timber is imported into the EU. To this end the EU intends to block imports of any wood or wood product which comes from unknown sources. Certification of sustainable forest management will help EU importers minimize risk, which is an essential part of their required due diligence system. Monitoring organizations are established to assist trade associations and businesses to construct comprehensive due diligence systems. National competent authorities are designated to follow the trade of the new FLEGT-licensed timber and timber products. In the first year of the EUTR there are positive impacts, of which the most important is awareness of the disastrous situation with illegal logging, driven by exports of illegal timber. Another positive development is tropical timber exporters documenting the legality of their wood exports. Yet another positive feature is establishment of due diligence systems by EU importers. However, there are considerable problems for ensuring legal trade; for example the lack of comprehensive documentation of origin and legality. Analysis of recent trends establishes changes in the European timber trade in terms of sourcing, substitution, diversion to less-demanding countries. Short-term forecasts of market trends and changes will enable further policy assessment to achieve the objectives of improved legality in international timber markets.JRC.H.3-Forest Resources and Climat
