The Global Timber Index (GTI) Report for July 2025 revealed a mixed performance in the global timber market, with the GTIs for Ghana (75.8%), Thailand (53.4%), and Brazil (50.8%) exceeding the 50% critical value while others were in the contraction territory. Among the winners, Ghana remained in the positive territory for the seventh consecutive month, Thailand posted growth in June and July despite heavy rains, and Brazil returned to the expansion territory after staying in the doldrums for six months. However, the GTI for China fell back into the contraction territory after four months, recording 48.7%, while the readings for Gabon (45.4%), the Republic of the Congo (42.4%), Mexico (36.7%), and Malaysia (29.6%) were also below the 50% critical value.

GTI sub-indices showed that both Thailand and Ghana saw significant increase 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. 

This month, the United States adjusted tariffs on several countries. For example, the tariff was reduced from 25% to 19% for Malaysia, and slashed from 36% to 19% for Thailand, which to some extent, eased export pressure on relevant enterprises from these countries. However, on July 30, the White House announced an additional 40% tariff on Brazil, raising the total tariff to 50%. According to the GTI-Brazil focal point, the additional tariff imposed by the United States on forest products from Brazil is already causing a sharp decline in exports, leading to order cancellations, layoffs, shipment disruptions at ports, as well as the suspension of industrial operations. And the most significant impacts are on processed wood products from planted forests, which are not included in the exemptions outlined in the U.S. Executive Order Section 232 of the Trade Expansion Act.

In terms of sustainable forest management, in an effort to move from "standard risk" to "low risk" status under the EU Deforestation Regulation (EUDR), Malaysian government has formed a special committee to strengthen national traceability systems and ensure the provision of credible forest data to the Global Forest Resources Assessment (FRA) by the Food and Agriculture Organization of the United Nations (FAO). Besides, this committee on EUDR is examining how countries like Thailand attained a low-risk classification, so as to identify the differences and work on improving them. In Ghana, the country is set to issue Forest Law Enforcement, Governance, and Trade (FLEGT) licenses for all timber exports to the EU beginning October 8, 2025. As of July 24, the Ghanaian Parliament had ratified 131 Timber Utilisation Contracts (TUCs), so as to meet the final requirements of the FLEGT licensing process. In Gabon, the environment minister announced the launch of a Payments for Environmental Services (PES) pilot program, aiming to reward local communities for their efforts in combating deforestation, restoring ecosystems, and protecting biodiversity.

GTI Report - July 2025.pdf