Understanding Conflict Wood

Conflict wood or timber refers to the wood that has been traded at some point in the process by armed groups, whether they are rebel factions or regular soldiers, or a civilian administration involved in an armed conflict or its representatives. This trade often aims to continue a conflict or exploit conflict situations for personal gain.

• Following the coup in February 2021 , Myanmar came under the control of a military junta.
• The military regime took over the Myanma Timber Enterprises (MTE), a state-owned entity that has exclusive rights over valuable timber and teak trade.
• There are claims that the auctions conducted by MTE generate substantial revenue, which is a primary income source for the military regime. This situation categorizes Myanmar's teak and timber as 'conflict woods'.

Actions Against the Illegal Timber and Teak Trade from Myanmar

• In 2013, the European Union implemented the EU Timber Regulation (EUTR), which places the onus on timber merchants to prevent illegal timber from entering the market.
• Myanmar has also prohibited the export of whole logs of timber.
• An Environmental Investigation Agency (EIA) report revealed that nearly 70% of the teak exported from Myanmar between 2000 and 2013 was illegally harvested.
• Both the EU and USA imposed a ban on timber trade with Myanmar in February 2021 and labeled MTE as a prohibited entity.

Effects of the Sanctions

• Despite the sanctions, the USA and several EU nations continue to import Myanmar teak.
• While many EU countries have reduced their import of Myanmar teak, imports have risen in countries like Italy, Croatia, and Greece.
• Fraudulent Forestry Stewardship Council (FSC) certificates are being used to legitimize the Myanmar timber trade.
• There have been several instances of seized smuggled teak along Myanmar's borders with India and China.

Addressing the Loopholes

• Strengthening regulations: There have been instances where exporters have exploited regulatory loopholes to export Myanmar teak and timber to the EU, the USA, and other markets. In many cases, exporters do not disclose the exact origin of the exported teak.
• Adopting advanced technologies: The incorporation of DNA testing on hardwood for tracing its origin can help identify teak sourced from Myanmar.