Fruitful discussions filled the meeting room in San José, Costa Rica for the ITTO Trade and Markets Day. Photo: Didier Fernandez

Against the lush tropical backdrop of Costa Rica, regional leaders in forestry, trade, and sustainability gathered for the International Tropical Timber Organization (ITTO) Trade and Markets Day on 04 April 2025, co-hosted with the Cámara Forestal Madera e Industria (CFMI). The event served as a vital platform for discussing transformative trends in tropical timber trade, from regulatory shifts to technological innovations, sustainable forest management, legal trade and climate-smart forestry solutions.

The event brought together a diverse range of stakeholders: forestry agencies, private sector representatives, certification bodies, international organizations, and civil society. The conference highlighted the dual role of timber—as a nature-based climate solution and as an economic driver for rural livelihoods.

Several presentations about new challenges as well as new oppportunities on tropical timber trade were made during the ITTO Trade and Markets Day. Photo: Didier Fernandez

Spotlight on the EUDR: new standards for global trade

A central point of discussion was the European Union Deforestation Regulation (EUDR), which will come into force in December 2025. Experts from Association Technique Internationale des Bois Tropicaux (ATIBT), GFA Certification, Forest Stewardship Council (FSC), Programme for the Endorsement of Forest Certification (PEFC), and national agencies unpacked the technical, legal, and logistical requirements of the EUDR compliance. Certification bodies outlined how their tools, such as FSC’s Regulatory Module and PEFC’s new Due Diligence System (DDS), aim to help companies meet deforestation-free and legality compliance.

Speakers agreed that while certification is not a substitute for due diligence or a grant of green lane for forest products, it remains a powerful risk-mitigation mechanism. The urgency of harmonizing standards, improving traceability systems, and investing in capacity-building across tropical producer countries was underscored throughout the day.

Traceability: from forest to market

Presentations from the UN Food and Agriculture Organization (FAO), Guatemala’s Instituto Nacional de Bosques (INAB), and Panama’s Ministry of Environment (MiAMBIENTE) showcased how Latin American countries are leading the way in forest traceability. With tools like SIFGUA (Guatemala) and STCF (Panamá), countries are leveraging digital platforms, NFC tags, QR codes, and modular systems to ensure transparent and verifiable supply chains. These systems are increasingly aligned with global frameworks such as EUDR and the Convention on International Trade in Endangered Species of wild fauna and flora (CITES), ensuring long-term market access and regulatory compliance.

ITTO Trade and Markets Day serves as a platform to have meaningful presentations and discussions on pertinent and pressing issues on tropical timber trade. Photo: Didier Fernandez

Industry perspectives from Brazil to Mexico

Representatives from AIMEX (Brazil), IMEXFOR (Mexico), and FEDEMADERAS (Colombia) shared national insights on timber sector development. While Brazil emphasized expanding legal harvesting through forest concessions, Mexico focused on reducing its timber trade deficit by strengthening domestic production and forest policy reforms. Colombia advocated for a shift to a bioeconomic model that links forestry to regional development, carbon markets, and agro-industrial clusters.

Each presentation reaffirmed the urgent need for coordinated policy, investment in innovation, and streamlined governance to unlock the full potential of tropical timber economies.

Countries shared their national contexts and insights giving more depth to the discussions. Photo: Didier Fernandez

Looking forward: trends, technology, and partnerships

Dr Ivan Tomaselli of STCP outlined projections that suggest plantation forestry—especially in tropical regions—will supply the bulk of industrial wood by 2050. This shift highlights the need for smart planning, improved silviculture, and sustainable land use.

Meanwhile, Dr Luo Xinjian of the Global Green Supply Chains Initiative (GGSC) emphasized the power of partnerships in fostering responsible trade. GGSC initiatives, including the Global Timber Index and blockchain pilots, underscore the role of transparency and innovation in shaping the next generation of forest-positive supply chains.

Dr Luo Xinjian of the Global Green Supply Chains Initiative (GGSC) emphasizing the power of partnerships at the ITTO Trade and Markets Day. Photo: Didier Fernandez

Dr Steve Johnson presented a technical and updated overview on the evolution of CITES-listed tropical tree species, highlighting their impact on the international trade of timber products thus far and calling for the need for technical and institutional cooperation among tropical timber-producing countries.

Dr Mohammed Nurudeen Iddrisu, ITTO Director of Trade and Industry, called for stronger collaboration among Latin American countries to build a unified front in promoting sustainable and legal tropical timber. “(The ITTO Trade and Markets Day) is an opportunity for us to discuss these threats and find common grounds towards facilitating legal and sustainable trades alongside managing the fragile forests sustainably,” he said.

Dr Mohammed Nurudeen Iddrisu, ITTO's Director of Trade and Industry, with the some of the participants of the ITTO Trade and Market Day in Costa Rica. Photo: Didier Fernandez

Partnerships that foster cooperation, practices that align with international standards, and a strong regional market that rewards environmental stewardship were the calls to action from the Day. 

“As global demand for timber grows, platforms like the ITTO Trade and Markets Day reaffirm the central role of tropical forests in a sustainable future—where climate resilience, economic development, and responsible trade go hand in hand”, says Ms Sheam Satkuru, ITTO Executive Director. 

“Promoting legal and sustainable timber trade remains a strategic priority for ITTO, and this regional event reflects our ongoing commitment to delivering meaningful support directly to our members”, she added.

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Source: International Tropical Timber Organization (ITTO)