Category: 2016

The UK’s decision to leave the EU – so-called “Brexit” – by a narrow majority of 52% to 48% in a referendum on 23 June is already being felt in currency markets and stock exchanges around the world. The short term economic effects are already evident – a slowdown in growth, certainly in the UK which might even dip back into recession, and also in the wider EU economy.

Preliminary analysis of Eurostat data indicates that the European veneer market, which was in decline between 2010 and 2014, staged a partial recovery in 2015. Total EU veneer consumption increased by 9% from 1.47 million m3 in 2014 to 1.60 million m3 in 2015. This rise was driven both by a 7% rise in domestic production, from 1.17 million m3 to 1.25 million m3, and a 12% rise in imports from 448,000 m3 to 500,000 m3 (Chart 1).

On 4 May, the European Commission (EC) published a comprehensive independent evaluation of the EU FLEGT Action Plan. The Plan encompasses the wide range of EU policy measures introduced over the last decade to support good forest governance and remove illegal wood from trade. Key amongst these are the EU Timber Regulation (EUTR) and the Voluntary Partnership Agreements (VPAs) now being implemented by six tropical countries and negotiated by another nine countries. The report assesses progress since the Plan’s publication in 2003 and makes recommendations for future action.

Latest trade data shows that the sharp rising trend in EU import value of tropical wood products that began in the second half of 2014 levelled off in the opening months of this year. This was mainly due to slowing imports of tropical sawn wood and decking, notably from Brazil and into the UK and France.

After a steep fall of more than 6% in 2014, the European Federation of the Parquet Industry (FEP) reports that European wood flooring consumption increased both in 2015 and in the first few months of 2016. In 2015, FEP observed “a stabilisation in parquet sales across Europe, with an upward tendency during the last months”. And in early 2016, FEP report market recovery across much of Europe.

In 2015, EU imports of tropical sawn hardwood were 1.05 million m3, 9% more than previous year. The value of EU imports increased by 15% to €772 million. The average unit value of tropical sawn hardwood imports into the EU in 2015 was €732 per cubic meter, up from €670 per cubic meter the previous year, the increase due to the euro being on average 20% weaker against the US$ in 2015 compared to 2014.

EU countries imported wood furniture worth €5.78 billion from outside the EU in 2015, 13% more than in 2014 and 16% more than in 2009, when the financial crisis had reached its climax. At the same time, EU exports of wood furniture rose to €8.73 billion in 2015, up only 3.5% from 2014 but 51% more than in 2009 (Chart 1).

The total value of EU imports of wood products was €17.20 billion in 2015, 12% more than in 2014. This followed an increase of 10% to €15.3 billion in 2014. In 2015 EU import value was at the highest level since 2008 just before the global financial crises (Chart 1).

The European Commission released the results of the first review of the EU Timber Regulation (EUTR) on 19 February. The review covers the period from March 2013 to March 2015 and is based on Member States’ reports on the application of the EUTR, an open public consultation, targeted stakeholder surveys and an evaluation report produced by an external consultant. It analyses the EUTR for relevance, effectiveness, efficiency, coherence and EU-added value.

EU imports of tropical veneers increased by 7% to 257,700m3 in the first 11 months of 2015, with growth driven primarily by rising trade between Gabon and France. Growth in volume was matched by a 6% increase in value to €162 million.