Illicit Trade in Forestry Products |
Illegal logging and illicit trade in timber undermines sustainable economic growth, economic development, and environmental conservation. It not only puts the livelihoods of forest-dependent populations at risk, but also undermines legitimate actors within the forestry sector by distorting timber markets and reducing profitability. This, in turn, results in a loss of government revenue. The estimated annual retail value of illegal logging is US$ 52 to US$ 157 billion, making it the most profitable natural resource crime (Global Financial Integrity, 2017).
In contrast to the trade in many other illicit goods, consumers of wood-based products remain largely unaware of the illegal origins of what they are buying. The potential costs to legitimate actors in the forestry sector includes loss of market shares, particularly due to unfair competition practices, reputational risks, increased monitoring of the supply chain, and security and insurance costs. |