In a media release Forest Trends (FT) has said it recently found that timber exports from Myanmar worth more than US$190 million were reported and much of this went to countries whose governments have applied trade sanctions potentially exposing companies importing from Myanmar to penalties.

Forest Trends reports timber exports valued at US$37 million were shipped to countries with sanctions and US$154 million shipped to China, India, Thailand and other countries which have not sanctioned MTE.

FT notes “most markets have decreased their imports of timber from Myanmar since the coup, but others, including countries with sanctions have increased imports relative to 2020.

In the US, where almost all imports were in the form of sawn teak for the luxury yacht market, the number of companies importing from Myanmar dropped by twothirds to only 5 importers, yet total trade still increased slightly.

Five EU Member States, Austria, Belgium, France, the Netherlands and Poland also showed substantial increases in imports.

China, which has not imposed sanctions on Myanmar, also increased imports by 35%. All findings are likely an underestimate as not all countries have reported trade for the entirety of 2021”.

Can teak purchased before sanctions be exported?

According to Myanmar exporters wishing to ship to the EU they have to process logs for which payment was made to MTE before 21 April 2021 and for the US, before 21 June 2021. Exporters have indicated that buyers in the US and EU are very strict on this condition. Because of this condition the price for teak logs held by private stockists has increased by about 30%.

Myanmar exporters also expressed their understanding that the products from the logs for which the payment had been settled before the respective dates are exempted from the sanctions. Such assumptions were shared with buyers who have been accordingly advised by their legal consultants.