Brexit to have strong impact on tropical imports in the short term, ITTO claims
The UK’s decision to leave the EU - so-called 'Brexit' - has created a crisis for the global economy, claimed the International Tropical Timber Organization (ITTO).
According to ITTO, UK withdrawal from the European Union will have significant implications on the tropical timber sector: in fact the UK is the largest importer of tropical timber in the EU with around 25% of the total value imported into the EU from tropical countries.
"Uncertainty and a slowing of economic growth in the UK and the EU will have an immediate impact on imports of wood products from tropical countries. Longer term, the prospects for tropical timber in the UK and the EU will depend on how quickly the UK and the EU recover from this shock", added the organization.
Regarding international timber trade regulations and agreements already in place, ITTO remarked that "the UK in both the public and private sector has been a leading player amongst EU countries to develop measures such as the EUTR, provide political and technical support for FLEGT and promote responsible timber procurement policies. There’s no reason to expect Brexit to lead to a reduction in this level of commitment, nor a reduction in co-operation between EU and UK agencies seeking to address these issues."
Download the complete Tropical Timber Market report here.