The Global Timber Index (GTI) Report for May 2025 revealed a continuous upward trend in the timber sectors of Ghana, China, and Mexico. The GTI for Ghana stood at 66.8%, remaining in positive territory (>50%) for the fifth consecutive month. The GTIs for China and Mexico were at 58.5% and 50.2%, respectively, both above the 50% critical value for three consecutive months. However, the readings for Gabon (46.2%), Thailand (46.2%), the Republic of the Congo (42.7%), Brazil (32.2%), and Malaysia (23.9%) remained in the contraction territory. Positive signs were evident in some GTI sub-indices. For example, harvesting volume in Ghana and Mexico rose for the third consecutive month; production volume in Gabon increased significantly compared to the previous month, coupled with lower inventory pressure; Thailand's domestic market improved; and China saw a three-month growth in export market. 

On 22 May, the European Commission officially released the list of country risk classifications under the EU Deforestation Regulation (EUDR), categorizing countries according to the level of risk. Indonesia, Malaysia, Brazil, and Mexico are in standard risk category, while Thailand, Gabon, the Republic of the Congo (ROC), Ghana, and China are identified as “low risk”. The Mexican government emphasized that its standard-risk status would not pose a threat to the export of Mexican goods, and consultations had already begun with domestic producers and exporters to offer technical guidance and ensure regulatory compliance. According to news from local media, Mexico’s Ministry of Agriculture and Rural Development had already established agreements with key related value chains to commit to 100% deforestation-free production. Additionally, a traceability system was being put in place to support these efforts. 

In response to U.S. tariff policies, many countries had strengthened origin monitoring measures to protect domestic industries. In Malaysia, the Deputy Plantation and Commo¬dities Minister Chan Foong Hin said the government would tighten enforcement to prevent Malaysia from being used as a transhipment hub for timber and timber products, and among the steps being taken are stricter documentation processes, especially for the issuance of Certificates of Origin (COO). In Thailand, the Department of Foreign Trade had expanded the list of products exported to the U.S. that require strict origin verification from 49 to 65 items, covering a total of 224 HS codes. For products on this list, such as furniture, the U.S. demands clear and specific code information, rather than just broad descriptions, and failure to comply may result in losing the export opportunity. In other news, in response to concerns about the possibility of trade diversion as a result of U.S. tariffs, the Brazilian government was intensifying its monitoring of risks and opportunities for the Brazilian furniture industry, with the aim of quickly identifying possible atypical import flows, and ensuring all sensitive tariff positions are considered in strategic planning and the survey of defense measures. 

GTI Report - May 2025.pdf