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Cogesoa Resarc SenUe


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February 26, 2019


International Illegal Logging: Background and Issues


Background
Illegal logging is a pervasive problem throughout the world
and generally is defined as the harvest, transport, purchase,
or sale of timber in violation of national laws. Illegal
logging can lead to degraded forest ecosystems and loss of
biodiversity, impede economic development, challenge
local governance, and contribute to crime and corruption. In
regions with large tropical forests, such as the Amazon and
areas in Central Africa and Southeast Asia, illegal logging
is estimated to account for 50%-90% of all forestry
activities, according to the International Criminal Police
Organization (INTERPOL).  INTERPOL also   reports that
the trade in illegally harvested timber is between $51 billion
and $152 billion annually. This figure does not take into
account the reduction in legal timber prices caused by
illegal logging, which is estimated to be between 7% and
16%. Some  express concern that U.S. demand for tropical
timber from countries in Latin America and Southeast Asia
could, in part, drive illegal logging in those areas. The
United States is the world's largest wood products
consumer  and one of the top importers of tropical
hardwoods, including Peruvian mahogany, 90% of which is
estimated to come from illegal logging. Illegal logging
activities can devalue U.S. timber exports. One source
estimates that if illegal timber were eradicated in the global
market, the value of U.S. timber exports could increase by
an average of approximately $460 million annually.

Scope and Scale
Due to the often clandestine nature of illegal logging, the
variability in defining illegal logging, and the difficulty of
obtaining large-scale data on illegal logging practices in
many  countries, estimates of the extent of illegal logging
are difficult to quantify specifically. Researchers estimate
that the percentage of illegal logging is highest in
Cameroon,  Indonesia, Brazil, Democratic Republic of the
Congo  (DRC), Myanmar,  Papua New  Guinea, Ghana, Peru,
and Laos. See Table 1 for estimates of illegal logging in
selected countries.

Table  I. Illegal Logging in Selected Countries

  Country  of Origin      Estimated %  of Illegal Logging

Brazil                                             50%
Cameroon                                       50%-65%
DRC                                                90%
Ghana                                          34%-70%
Indonesia                                      60%-80%
Laos                                           35%-80%

Malaysia                                            35%


  Country  of Origin      Estimated  % of Illegal Logging

Papua New Guinea                                   70%
Peru                                           80%-90%
Republic of Congo                                  70%

              .i          10%-15% in Northwest and 50% in
Russian Federation                        FrEs    usa
                                          Far East Russia.
Sources: A. Hoare, Tackling Illegal Logging and the Related Trade,
Chatham House Report, July 2015; and World Bank, Strengthening
Forest Law Enforcement and Governance, August 2006.

The top consumers of international illegal logging include
China, India, Japan, the United States, and countries within
the European Union (EU).

U.S.   Laws   That   Address Iega         Logging
The United States has several laws that address aspects of
international illegal logging. These laws focus on the
import of timber from foreign countries and authorize
funding to combat illegal logging. Importing timber of
certain species can be regulated or banned if the timber
species is listed under the Endangered Species Act (ESA;
16 U.S.C. §§1531-1543). (Foreign species can be listed
under ESA.) Permits generally are required to import ESA-
listed timber. ESA-listed timber also may be listed under
the Convention on the International Trade in Endangered
Species of Wild Flora and Fauna (CITES). CITES regulates
trade of protected plant and wildlife species, which are
classified according to how trade threatens their survival.
U.S. imports of wood and wood products from CITES-
listed tree species are regulated according to their status.
Currently, 73 tree species are listed as trade-restricted under
CITES.  Listed species are traded through a permit system,
which provides oversight over trade and how it affects
species. If any of these laws or other federal, state, and
foreign laws are violated, the Lacey Act (16 U.S.C.
§§3371-3378)  could be invoked.

The Lacey Act makes  it unlawful to import, export,
transport, sell, receive, acquire, or purchase in interstate or
foreign commerce any plant, fish, or wildlife taken,
possessed, transported, or sold in violation of any U.S. or
state law or regulation, or in violation of any foreign law. In
relation to foreign timber, the Lacey Act makes it illegal to
import plants and plant products that have been harvested
or processed in violation of foreign and domestic laws. The
Lacey Act is often considered the primary policy
mechanism  the United States can use to curb illegal
logging. U.S. companies that import timber have to conduct
due diligence to make sure their shipments were harvested
and processed legally according to U.S. and foreign laws. If
a law was broken, a U.S. company could be subject to civil


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