International Marketing Practices

10,000 15,000 20,000 25,000 30,000 35,000 40,000

Oceania North America Latin America & Caribbean Europe Asia Africa

0 5,000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Figure 4. Number of FSC chain of custody (COC) certificates by region [49]. All figures are for December of the corresponding year.

Price premiums for forest certification reported in the literature range from 1% to 40% [60] and depend on several factors. For example, products made with tropical species, in general, are priced at higher premiums than those from temperate species [61]; likewise, low-end products, purchased frequently and with a lower base price, tend to command a higher price premium [60]. Forest certification has historically had little impact on trade of value-added products; however, it positively affects trade of raw materials, such as logs and lumber [62]. Legislation to Curtail Illegal Logging Illegal logging poses a significant threat to the global ecosystem, as well as to international markets. It is estimated that annual illegal timber trade is worth up to $152 billion, which is a staggering 30% of the total timber trade [63], and costs governments approximately $10 billion [64]. In countries where illegal logging is a customary practice, it can account for 20%-90% of overall roundwood production [65]. One study estimated that in 2013, most illegal timber (85%) originated from Indonesia, Brazil, and Malaysia; however, many smaller countries produce high proportions of illegal timber, some approaching 100% [66]. To address this issue, many governments have enacted laws that aim to curtail the trade of illegally sourced timber. The two legal frameworks with the largest impact on global trade of forest products are the Lacey Act in the U.S. and the Forest Law Enforcement, Governance and Trade (FLEGT) Action Plan in the European Union. Lacey Act The Lacey Act, legislation enacted in 1900 to ban the traffic of illegal wildlife, was amended in 2008 to include forest products [67], making it the first ban on illegally sourced wood products. Under the amended Lacey Act, it is unlawful to “ import, export, transport, sell, receive, acquire or purchase any fish or wildlife or plant taken, possessed, transported, or sold in violation of any law, treaty, or regulation

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