Myanmar Teak Trade [Conflict Wood]

Trade of teak in Myanmar has been in news recently (known as ‘conflict wood’). Global Forest Watch says the country, over the last two decades, has lost forest cover roughly the size of Switzerland. In this context, it is important to understand the meaning of the term conflict wood, why is the Myanmar teak trade contentious and related issues. This is an important topic in the IAS exam international relations segment.

What is Conflict Wood?

Conflict timber is defined as timber that has been traded at some point in the chain of custody by armed groups, be they rebel factions or regular soldiers, or by a civilian administration involved in armed conflict or its representatives, either to perpetuate a conflict or take advantage of conflict situations for personal gain.

• Myanmar came under military junta rule after the February 2021 coup. 
• The military administration took control of the Myanma Timber Enterprises (MTE), a state-owned company having exclusive rights over the precious timber and teak trade. 
• And it is argued that through the auctioning conducted by MTE, large amounts of money are generated which is the key revenue stream for the military regime. Hence the Myanmar teak and timber also fall under the definition of ‘conflict woods’.

Sanctions on the Illegal trade of timber and teak from Myanmar

• The European Union introduced the European Union (EU) Timber Regulation (EUTR) in 2013, which puts the responsibility on the timber merchants to disallow illegal timber from entering the market.
• Myanmar has also banned the export of whole logs of timber.
• A report published by the Environmental Investigation Agency (EIA) showed that almost 70% of the teak exported from Myanmar between 2000 and 2013 was illegally harvested.
• In February 2021 both EU and USA banned timber trade with Myanmar and categorised MTE as a banned entity.

Impact of the Sanctions

• Flow of Myanmar teak continues to the USA and many EU nations.
• Though the import of Myanmar teak to many EU countries has come down, imports into countries such as Italy, Croatia and Greece have increased.
• Fraud Forestry Stewardship Council (FSC) certificates are being used to legitimize the trade in timber from Myanmar.
• Numerous cases of seizure of smuggled teak along Myanmar’s border with India and China are observed.

Loopholes to be plugged

• Strengthen regulations: It is observed that the loopholes in the regulations are used to export Myanmar teak and timber to the EU, the USA and other markets. In many cases, it was observed that the exporters do not mention the exact place from where teak is being exported.
• Introduction of advanced technologies: The introduction of DNA testing on the hardwood for its traceability of origin can be used to identify teak originating from Myanmar.

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