The demand for teak, a prized hardwood from Southeast Asia, is fueling an illicit trade that circumvents international regulations and empowers Myanmar’s military regime. This illegal activity, facilitated by what some are calling “Illegal Mega Links” in the supply chain, lines the pockets of the ultra-wealthy while devastating Myanmar’s forests.
Since the 2021 military coup in Myanmar and subsequent EU sanctions, the teak trade has been driven underground. Teak’s durability and luxurious finish make it a favorite for yacht decking, attracting affluent buyers who prioritize prestige over price. This creates lucrative opportunities for unscrupulous dealers who exploit loopholes in the European Union Timber Trade Regulation (EUTR).
Exploiting Loopholes: How Illegal Teak Enters the EU
The EUTR, implemented in 2013, mandates that timber importers exercise “due diligence” to ensure the legality of their products. However, inconsistent enforcement and a reliance on national-level implementation create vulnerabilities that allow illegally harvested teak to enter the EU market.
The Environmental Investigation Agency (EIA) asserts that there is no legal way to import Burmese teak currently. Pre-coup regulations regarding sustainable logging were rarely adhered to, and the current lack of transparency raises serious concerns about the legitimacy of any teak originating from Myanmar.
Illegal teak is often routed through China to EU borders, then imported into countries like Italy, Croatia, and Greece. Despite a decline in officially reported imports in late 2021, significant quantities of illegal teak continue to flow into the EU.
Challenges in Identifying Illegal Teak
Genetic testing, conducted by institutions like Germany’s Thünen Institute, can pinpoint the origin of timber samples. However, this method has limitations. It cannot distinguish between trees harvested on the border of legal and illegal logging areas, and not all wood types are amenable to genetic analysis.
Furthermore, the sheer volume of wood products entering the EU makes comprehensive testing impossible. Finished goods, processed materials, and items not covered by the EUTR, such as musical instruments and toys, often escape scrutiny. The practice of mixing logs in stockpiles further obscures their true origins.
From Mega-Yachts to Military Vessels: The Demand for Illegal Teak
The demand for teak extends beyond the private sector. The German government’s use of Myanmar teak in the renovation of its military training ship, the Gorch Fock, sparked controversy and a complaint from the WWF to the European Commission. This incident underscores the widespread complicity in the illegal teak trade.
Potential Solutions and the Future of the EUTR
Listing teak under the Convention on International Trade in Endangered Species (CITES) could offer protection, but requires cooperation from Myanmar, which is unlikely under the current regime. Monitoring logging areas with advanced technologies like GPS, satellites, and drones is another possibility.
The EU is developing a supply chain law aimed at curbing the import of illegally harvested timber. The success of this legislation hinges on pan-European cooperation and a commitment to holding businesses accountable for their sourcing practices. A broader Europe-wide supply chain law is also under discussion, potentially reshaping the future of the EUTR.
The fight against illegal mega links in the teak trade requires concerted international efforts, stricter enforcement of existing regulations, and a greater commitment to transparency and sustainability within the timber industry.
