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February 26, 2019
International Illegal Logging: Background and Issues
Background
Country of Origin
Estimated % of Illegal Logging
Illegal logging is a pervasive problem throughout the world
and generally is defined as the harvest, transport, purchase,
Papua New Guinea
70%
or sale of timber in violation of national laws. Illegal
logging can lead to degraded forest ecosystems and loss of
Peru
80%-90%
biodiversity, impede economic development, challenge
Republic of Congo
70%
local governance, and contribute to crime and corruption. In
regions with large tropical forests, such as the Amazon and
10%-15% in Northwest and 50% in
Russian Federation
areas in Central Africa and Southeast Asia, illegal logging
Far East Russia.
is estimated to account for 50%-90% of all forestry
Sources: A. Hoare, Tackling Illegal Logging and the Related Trade,
activities, according to the International Criminal Police
Chatham House Report, July 2015; and World Bank, Strengthening
Organization (INTERPOL). INTERPOL also reports that
Forest Law Enforcement and Governance, August 2006.
the trade in illegally harvested timber is between $51 billion
and $152 billion annually. This figure does not take into
The top consumers of international illegal logging include
account the reduction in legal timber prices caused by
China, India, Japan, the United States, and countries within
illegal logging, which is estimated to be between 7% and
the European Union (EU).
16%. Some express concern that U.S. demand for tropical
timber from countries in Latin America and Southeast Asia
U.S. Laws That Address Illegal Logging
could, in part, drive illegal logging in those areas. The
United States is the world’s largest wood products
The United States has several laws that address aspects of
international illegal logging. These laws focus on the
consumer and one of the top importers of tropical
import of timber from foreign countries and authorize
hardwoods, including Peruvian mahogany, 90% of which is
funding to combat illegal logging. Importing timber of
estimated to come from illegal logging. Illegal logging
certain species can be regulated or banned if the timber
activities can devalue U.S. timber exports. One source
species is listed under the Endangered Species Act (ESA;
estimates that if illegal timber were eradicated in the global
16 U.S.C. §§1531-1543). (Foreign species can be listed
market, the value of U.S. timber exports could increase by
under ESA.) Permits generally are required to import ESA-
an average of approximately $460 million annually.
listed timber. ESA-listed timber also may be listed under
Scope and Scale
the Convention on the International Trade in Endangered
Species of Wild Flora and Fauna (CITES). CITES regulates
Due to the often clandestine nature of illegal logging, the
trade of protected plant and wildlife species, which are
variability in defining illegal logging, and the difficulty of
classified according to how trade threatens their survival.
obtaining large-scale data on illegal logging practices in
U.S. imports of wood and wood products from CITES-
many countries, estimates of the extent of illegal logging
listed tree species are regulated according to their status.
are difficult to quantify specifically. Researchers estimate
Currently, 73 tree species are listed as trade-restricted under
that the percentage of illegal logging is highest in
CITES. Listed species are traded through a permit system,
Cameroon, Indonesia, Brazil, Democratic Republic of the
which provides oversight over trade and how it affects
Congo (DRC), Myanmar, Papua New Guinea, Ghana, Peru,
species. If any of these laws or other federal, state, and
and Laos. See Table 1 for estimates of illegal logging in
foreign laws are violated, the Lacey Act (16 U.S.C.
selected countries.
§§3371-3378) could be invoked.
Table 1. Illegal Logging in Selected Countries
The Lacey Act makes it unlawful to import, export,
Country of Origin
Estimated % of Illegal Logging
transport, sell, receive, acquire, or purchase in interstate or
foreign commerce any plant, fish, or wildlife taken,
Brazil
50%
possessed, transported, or sold in violation of any U.S. or
state law or regulation, or in violation of any foreign law. In
Cameroon
50%-65%
relation to foreign timber, the Lacey Act makes it illegal to
DRC
90%
import plants and plant products that have been harvested
or processed in violation of foreign and domestic laws. The
Ghana
34%-70%
Lacey Act is often considered the primary policy
Indonesia
60%-80%
mechanism the United States can use to curb illegal
logging. U.S. companies that import timber have to conduct
Laos
35%-80%
due diligence to make sure their shipments were harvested
Malaysia
35%
and processed legally according to U.S. and foreign laws. If
a law was broken, a U.S. company could be subject to civil
https://crsreports.congress.gov
International Illegal Logging: Background and Issues
and criminal penalties. For example, in 2017, a U.S. forest
exercise financial penalties on illegally produced timber.
products company was charged with importing timber from
Efforts to deter illegal logging and improve due diligence
Peru that was harvested and labeled in violation of Peruvian
from timber consumers include third-party wood
law. Studies report that implementation of the Lacey Act
certification programs. For example, the Forest Stewardship
has reduced the import of illegal timber from countries.
Council (FSC) is an independent, international
nongovernmental organization that certifies that wood
The Tropical Forest Conservation Act (TFCA; 22 U.S.C.
comes from managed forests that meet an established set of
§§2431 et seq.) indirectly addresses illegal logging by
criteria. FSC has certified almost 200 million hectares of
authorizing debt-for-nature transactions. Under this
forests internationally. The United Nations (U.N.) also
program, debt can be restructured in eligible countries and
addresses illegal logging; the U.N. Office on Drugs and
funds generated from the transactions are used to support
Crime, partnering with international structures (e.g.,
programs to conserve tropical forests within the debtor
INTERPOL) and local entities, guides countries in
country. Several countries, such as Peru and Brazil, have
identifying illegal logging through research and law
used funds generated from transactions authorized under
enforcement.
this act to monitor logging activities and train enforcement
personnel to address illegal logging.
Issues for Congress
Other countries and entities have enacted laws similar to the
Congress has limited opportunities to directly affect illegal
Lacey Act to address illegal logging. The EU and Australia
logging overseas. To date, Congress has focused on
have laws that make it unlawful to import timber that has
regulating imports of timber and assisting countries with
been illegally logged or processed under domestic or
law enforcement and regulations related to logging. Some
foreign laws. The EU also created the Forest Law
have suggested further actions Congress could take to
Enforcement, Governance, and Trade Action Plan
address illegal logging, such as encouraging the
(FLEGT), which prohibits illegal timber from being placed
Administration to work with other timber importing
on the EU market and requires that only timber labeled as
countries (e.g., China and India) to adopt laws and
legal be imported into the EU. FLEGT also established
regulations similar to the Lacey Act, EU regulations, and
voluntary partnership agreements, which are legally binding
Australian laws prohibiting the import or sale of illegal
trade agreements with non-EU countries that contain a
timber. This could reduce the number of markets where
legality assurance system and forest governance obligations
illegal timber could be sold and place additional pressure on
for timber products.
logging operations to abide by their national laws and
international regulations. Some might contend that
U.S. Foreign Policy on Illegal Logging
Congress and the United States have little influence in
The United States has policy initiatives aimed at reducing
persuading other countries to adopt these laws, especially if
illegal logging in foreign countries. For example, in the
countries are benefitting from lower-priced, illegal timber.
Congo Basin, the U.S. government has developed the
Some stakeholders advocate that Congress should address
Congo Basin Forest Partnership. This multilateral
illegal logging by increasing resources to improve foreign
partnership is aimed at improving forest management and
and international law enforcement, monitoring, and
governance to reduce deforestation and illegal logging. The
governance efforts in developing countries where illegal
United States also has administered sanctions against
logging exists. Possibilities include funding through
foreign countries due to illegal logging; it has directed
bilateral agreements or through debt-for-nature swaps under
sanctions of illegal logging activities at Cambodia, Burma,
the TFCA. Further, some assert that addressing other forms
and Indonesia.
of international crime, such as wildlife trafficking and drug
In addition, the United States has addressed illegal logging
trafficking, could reduce illegal logging; according to
through bilateral agreements. For example, the U.S.-Peru
INTERPOL, pathways for illegal logging are similar to
Free Trade Agreement contains provisions to protect the
those for wildlife and drug trafficking. Some might contend
environment and address illegal logging. A Forest Annex in
that foreign assistance may not be effective if governance
the agreement contains requirements for Peru to reduce
and law enforcement is weak in countries where illegal
illegal logging through law enforcement and monitoring.
logging occurs.
The United States has provided financial and technical
Some observers suggest that Congress implement existing
assistance to Peru to meet these goals. In other bilateral
or new certification systems to help ensure legal timber
agreements, the United States has provided direct financial
imports, similar to FLEGT. Some suggest that those who
aid to countries to address illegal logging. For example, a
import wood from producers with favorable timber
bilateral agreement with Indonesia contains a Working
certifications could be exempted from the Lacey Act. In
Group on Combating Illegal Logging and Associated Trade,
contrast, some might note that current certification
which aims to promote the legal trade of timber products.
programs do not cover all aspects of timber production or
The United States has committed millions of dollars to
are not uniform across countries.
combat illegal logging and conserve forests in Indonesia.
International Initiatives and Institutions
Pervaze A. Sheikh, Specialist in Natural Resources Policy
Lucas F. Bermejo, Research Associate
Several relevant multilateral and international agreements
Kezee Procita, Research Librarian
address illegal logging. These range from voluntary
agreements to legally binding multilateral agreements that
IF11114
enable signatory governments to seize illegal products and
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International Illegal Logging: Background and Issues
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