GTI: Brazil back in expansion after six months

Forest operation in Para, Brazil. The country’s GTI Index for July suggests an upturn in its timber industry. © TRC-Teak Resources Co.

Brazil’s timber sector returned to growth in July after six months in the doldrums, according to the latest Global Timber Index (GTI) report. The ITTO-supported GTI tracks the performance of the timber sector in pilot countries.

The GTI for Brazil stood at 50.8% in July, back above the 50% threshold, indicating an upward trend in its timber sector. The GTI for Ghana (75.8%) remained in positive territory for the seventh consecutive month, suggesting sustained improvement. Despite heavy rains, Thailand (53.4%) also posted growth for the second consecutive month.

However, the GTI for China (48.7%) fell back into contraction territory after four months of growth, and the readings for Gabon (45.4%), the Republic of the Congo (42.4%), Mexico (36.7%), and Malaysia (29.6%) remained in contraction territory, suggesting an overall decline in the timber business in those countries.

GTI sub-indices showed that both Thailand and Ghana saw significant increases in harvesting volume, when compared to the previous month; China’s timber production maintained growth for the fifth consecutive month; Brazil’s domestic market improved significantly; and Mexico’s export market stabilized again after a temporary decline in June.

In July, the United States of America adjusted tariffs on imports from several countries. For example, the tariff was slashed from 36% to 19% for Thailand. However, the White House announced an additional 40% tariff on Brazil, raising the total tariff to 50%.

According to the GTI-Brazil focal point, the most significant impacts on the timber sector are on processed wood products from planted forests, which are not included in exemptions outlined in the relevant US executive order.

The latest edition of the GTI report also surveys progress toward sustainable forest management, including developments in Ghana and Malaysia related to EU market regulations.

In its series of case studies on good practice for legal and sustainable timber trade, the July report showcases sustainable forest management based on community governance in Mexico.

The GTI platform has conducted a comprehensive supply-demand survey targeting its sample enterprises in ten pilot countries, and the main findings are also presented in this report.

The monthly GTI Report, GTI-Producers Report and GTI-WBP Report are available free at www.itto.int/gti.