The Trans Pacific Pact is expected to bring significant benefits for the U.S. forest products sector, with tariffs as high as 40% in Malaysia and 31% in Vietnam eliminated. TPP countries represent a significant market for U.S. wood products and account for nearly half of the total value of forest products exports (worth $36.4 billion) in 2014.
When ratified, the agreement will also see new environmental commitments made as the TPP requires each member country to implement its obligations under the Convention on International Trade in Endangered Species of Wild Fauna and Flora, which regulates trade in many timber species, including Big-leaf Mahogany, Spanish Cedar, and Ramin, which grow primarily in Southeast Asia. This will help protect some of the world’s most important biodiversities; Peru is home to 13% of the world’s tropical forests, with over 170 million acres of rainforest; Malaysia is one of the largest exporter of tropical timber products in the world; and Brunei’s forested areas account for over 70% of its total land area.
Image: A lumber yard in Atlanta, United States
Source: US Office of Trade Negotiations and Analysis, Industry and Analysis/ Edited by Panels & Furniture Asia