Business Trends Abroad
European Union’s Tropical Wood Product Imports Increased In 2025
European Union – The European Union (EU) imported 1,608,800 tons of tropical wood and wood furniture in 2025, 10 percent more than in 2024, according to the most recent data available. Import value was up seven percent to U.S.$3.32 billion in 2025. Although a positive trend, the reality is that the gains last year only just raised EU import quantity above the all-time low recorded in 2024, while the seven percent increase in the nominal dollar value of imports is less impressive when set against EU annual inflation of 2.4 percent in 2025 and 2.7 percent the previous year.
Taking account of inflation, the real value of imports last year was significantly less than during the static trading years between 2012 and 2019. It is also very uncertain whether the gains will be sustained into 2026 as they may be more indicative of efforts to build stocks in advance of EUDR enforcement, which was due to start on December 30, 2025, only for the EU to agree to another 12-month delay on December 18, 2026.
There was a significant surge in imports in the weeks immediately before that announcement, much of it focused on plywood and wood furniture from Vietnam. The EU’s decision to impose anti-dumping duties on hardwood plywood from China in the second half of last year was another factor driving increased imports of plywood from tropical countries, again most notably from Vietnam, in the second half of 2025.
Nominal unit prices (not adjusted for inflation) for tropical wood and wood furniture imported into the EU decreased from U.S.$2,116 per ton in 2024 to U.S.$2,026 in 2025. As such they now sit in the middle of the range between the peak of the post-COVID boom in 2022 and the bust in 2023.
Average unit prices of tropical wood product imports into the EU are now much higher than before the COVID pandemic when they never exceeded U.S.$1,800 per ton. This was partly owing to inflation and partly to a structural shift in the tropical wood product groups imported into the EU with a higher proportion now comprising higher value finished furniture and joinery products rather than sawnwood, mouldings and logs.
The increase in EU imports of higher value tropical composite wood products has been one of the few bright spots for the tropical wood industry in the EU market in recent years.
The geolocation requirements of EUDR are particularly challenging for more complex products such as furniture for which wood is necessarily aggregated from a wide variety of different sources, including secondary processed waste streams. Many wood furniture manufacturing companies in Southeast Asia are SMEs and often dependent on wood supplies from smallholders, complicating supply chains even further. They will likely need significant technical and marketing support to ensure their conformance to EUDR.
Quebec Unveils ‘‘Mini-Reform’’ Of Forest Regime To Support Struggling Mills
Canada – The government of Quebec has announced what it calls a “mini-reform” of its forest regime, aimed at easing pressure on sawmills amid a prolonged industry downturn. According to Radio-Canada, Natural Resources and Forests Minister Jean-François Simard said the changes are intended to help prevent further mill closures and job losses after months of instability in the sector.
As reported by Radio-Canada, Quebec will abolish the annual royalty charged to sawmills for access to public timber. The minister compared the fee to a “big Costco card” that companies had to pay for in order to access Quebec wood. Eliminating the charge will leave roughly C$20 million per year in the hands of mills, though it will reduce provincial revenues by the same amount. Simard acknowledged that Quebec had been the only Canadian province to impose such a fee and said the move is designed to improve competitiveness, particularly vis-à-vis Ontario.
Radio-Canada further reports that Quebec plans to revise public forest timber pricing by introducing a more flexible mechanism based on a minimum rate adjusted monthly according to average company profitability and market conditions. The province will also scrap its auction system for a portion of harvestable timber, instead allocating all volumes annually to provide greater predictability for companies. In addition, the minister will allow regional pilot projects to test new forest management approaches, which could inform a broader overhaul of the regime in the future. Simard said the immediate priority remains urgent support for the industry, as the trade dispute affecting the sector shows no clear sign of ending.
Ghana’s Wood Product Exports Fall To Six-Year Low In 2025
Ghana – Ghana recorded its lowest wood product export performance in six years in 2025, according to data from the Timber Industry Development Division (TIDD).
Export earnings declined to €98.38m from shipments totaling 217,000 cubic meters, representing year-on-year decreases of 21 percent in value and 20 percent in volume.
Between 2020 and 2025, Ghana exported an estimated 1.66m cubic meters of wood products with a total value of €763.07 million. Over the period, export volumes peaked in 2022 at 343,000 cubic meters before entering a steady decline.
Shipments rose from 226,000 cubic meters in 2020 to 302,000 cubic meters in 2021 and reached 343,000 cubic meters in 2022. In 2023, volumes fell by nearly 15 percent — a drop of around 50,000 cubic meters — to 293,000 cubic meters. The downward trend continued through 2024 and into 2025, culminating in the current six-year low.
In value terms, exports followed a similar trajectory, rising from €116.15 million in 2020 to €153.86 million in 2022 before retreating steadily to €98.38 million in 2025.
Air-dried sawnwood remained the dominant export product, accounting for 55 percent of total volumes. Kiln-dried sawnwood represented 14 percent, plywood 11 percent, and billet 10 percent. Together, these four categories accounted for 89 percent of total export volume (1.47 million cubic meters over the six-year period) and 83 percent of total export value (€629.59 million).
Teak was the leading species exported by volume, followed by Wawa/Ayous, Eucalyptus, Cedrela and Gmelina.
Asia continued to absorb the majority of Ghana’s wood product exports, accounting for 63 percent of shipments. Europe followed with 17 percent, Africa with 13 percent, the Americas with 4 percent and the Middle East with 3 percent.
Exports to African markets declined from 13 percent of total shipments in 2020 to 9 percent in 2024, before showing signs of recovery in 2025 at 11 percent.
Within the Economic Countries of West African States (ECOWAS) sub-region, export volumes increased by 7 percent in 2025 compared with the previous year, while value rose by 1 percent.
Plywood dominated regional trade, accounting for 17,791 cubic meters valued at €6.79 million. Sawnwood exports to ECOWAS totaled 1,668 cubic meters (€618,147), while sliced veneer reached 170 cubic meters (€146,758) and poles 142 cubic meters (€12,232).
Togo, Burkina Faso and Gambia were the leading importers of Ghanaian plywood within the sub-region, with volumes of 5,817 cubic meters, 4,308 cubic meters and 3,036 cubic meters respectively.
The 2025 figures confirm a continued contraction in Ghana’s wood product exports following the 2022 peak, with volumes and earnings now at their lowest levels since 2020.
Vietnam’s Wood And Furniture Exports Surpass U.S.$17 Billion As Demand Recovers
Vietnam – Vietnam’s wood industry enters 2026 with a positive growth outlook as furniture demand in major markets shows signs of gradual recovery. After a period of global economic volatility, improving conditions in housing and retail sectors are supporting renewed demand for wood products and furniture.
Within this context, the United States continues to play a pivotal role, while at the same time imposing increasingly stringent requirements on product quality and supply chain reliability.
In 2025, Vietnam’s wood and wood product exports recorded solid growth across most major markets. The United States remained the largest destination, with exports reaching U.S.$9.4 billion, up four percent compared with the previous year, reaffirming its position as Vietnam’s primary export market.
Japan stood out with an impressive growth rate of 23 percent, reaching U.S.$2.15 billion, signaling rapidly expanding demand for Vietnamese wood products. Among other major markets, exports to China increased by 3.5 percent to U.S.$2.08 billion, while shipments to Canada and the United Kingdom grew by 14 percent and 9 percent respectively, reflecting successful efforts at market diversification.
Regional markets such as Malaysia and Australia also maintained growth momentum, with export values of U.S.$167 million and U.S.$163 million respectively.
Overall, the data show that Vietnam’s wood industry continues to expand strongly in the U.S. market. Beyond price competitiveness, U.S. buyers increasingly prioritize sustainability certification, transparent origin and traceability, while also requiring stable delivery times and flexible order fulfilment capabilities.
Over the past year, Vietnam’s wood industry has faced multiple simultaneous pressures, including weakening demand in certain major markets, volatile logistics costs and increasingly stringent requirements related to legal sourcing and environmental standards. In addition, risks arising from trade defense measures and intensified regional competition have required exporters to adjust their production and export strategies.
Nevertheless, despite these challenges, Vietnam’s wood export value surpassed U.S.$17 billion for the first time. This achievement highlights the sector’s resilience, adaptability and the relatively solid production and supply chain foundations that have been built in recent years.
U.S. Hardwood Flooring Imports Lag Previous Year As Volumes To China Contract Sharply
United States – U.S. imports of hardwood flooring and assembled flooring panels continue to trail last year’s pace, with year-to-date volumes through November running significantly behind 2024, according to the most recent data available.
Hardwood flooring imports declined six percent in November compared with the previous month. At U.S.$5.7 million, the November total was 21 percent lower than in November 2024. The monthly drop reinforces a broader trend: cumulative imports through November are running six percent below last year’s level, making it increasingly likely that full-year 2025 imports will finish below 2024.
The sharpest declines have come from China. Imports of hardwood flooring from China fell 72 percent in November and are down 46 percent for the year-to- date. The contraction reflects a combination of trade friction, supply chain realignment and weaker U.S. demand in the residential renovation segment.
Brazil, another key supplier, has also seen reduced shipments. Although imports from Brazil rose 40 percent month-on-month in November, year-to-date volumes remain 51 percent lower compared with the same period last year. The late-year rebound was insufficient to offset earlier weakness.
A similar pattern is visible in assembled flooring panels. Imports through November are down 12 percent versus 2024 levels. While November shipments increased 24 percent compared with October, they were still 27 percent lower than in November 2024, underlining the subdued underlying demand.
China again accounts for a large share of the decline. Panel imports from China dropped 53 percent in November and are down 45 percent for the year so far. Thailand, another established source, resumed shipments in November after four consecutive months without reported imports. Even so, Thai panel imports remain 60 percent lower year-to-date.
The data point to continued softness in U.S. flooring demand heading into year-end. While short-term monthly gains suggest some restocking activity, overall import levels indicate that the market has yet to regain momentum seen in previous years.
Canadian Housing Starts Fall 15 Percent In January As Construction Momentum Slows
Canada – Canada’s annual pace of housing starts declined by 15 percent in January, according to the latest data from the Canada Mortgage and Housing Corporation (CMHC), signaling continued easing in residential construction activity.
The seasonally adjusted annual rate (SAAR) of housing starts fell to 238,049 units in January from 280,668 units in December. The drop more than offset the increase recorded in the previous month.
While actual housing starts in January were largely unchanged compared to a year earlier, CMHC said the six-month trend measure has now declined for the fourth consecutive month, reflecting softer momentum in the sector.
Among Canada’s three largest metropolitan areas, results were mixed. Vancouver posted a 37 percent increase in actual starts, driven by gains in both multi-unit and single-detached construction. Toronto recorded a two percent decline, mainly due to fewer single-detached starts. Montreal saw a 44 percent year-over-year decrease, reflecting lower activity in both multi-unit and single-detached segments.
In centers with a population of 10,000 or more, actual housing starts edged up 1 percent compared with January last year. The SAAR estimate for rural housing starts was 20,485 units. The six-month moving average of the SAAR declined 3.5 percent in January to 254,794 units.
CMHC said it expects new construction activity to trend lower in the near term, citing ongoing trade and geopolitical uncertainty, elevated construction costs, weaker demand and rising inventories as factors weighing on developer activity.
Germany’s Housing Permits Rise For First Time Since 2021
Germany – Germany approved the construction of 238,500 homes in 2025, marking a 10.8 percent increase — or 23,200 units — compared with 2024, according to preliminary data from Statistisches Bundesamt (Destatis). The previous year had seen permits fall to their lowest level since 2010. The 2025 figures therefore represent the first annual increase in residential building permits since 2021, according to the most recent data available.
The data include permits for both newly built dwellings and units created through the conversion of existing buildings. As a leading indicator, building permits provide an early signal of future construction activity.
Permits for new residential units rose by 12.6 percent year-on-year to 198,100, an increase of 22,100 homes. By contrast, permits for dwellings created through the conversion of existing buildings increased more modestly by 2.7 percent, or 1,000 units, to 40,400.
Within newly constructed residential buildings, a total of 194,200 units were approved in 2025 — up 13.2 percent from the previous year. Developments varied across housing types. Permits for single-family homes rose sharply by 17.2 percent to 44,500 units, with growth recorded throughout the year. In contrast, approvals for two-family homes remained broadly stable at 12,600 units, down slightly by 1.1 percent. Together, these two categories — typically built by private individuals — accounted for 28.8 percent of all newly approved dwellings.
Multi-family housing, the largest segment and predominantly developed by companies, recorded 128,100 approved units in 2025. This represents a 12.1 percent increase year-on-year and accounts for 64.6 percent of all newly approved residential units. The rebound in this segment became particularly evident in the second half of the year.
Approvals for new residential care homes and similar facilities rose even more strongly, climbing 34.2 percent to 9,100 units.
In non-residential buildings — such as caretaker apartments in schools or residential units above commercial premises — 3,900 dwellings were approved in 2025, down 10.3 percent from the previous year.
Overall, around 95 percent of the 198,100 new-build permits issued in 2025 were attributed to companies and private individuals. Companies accounted for 108,800 units, an increase of 14.6 percent compared with 2024, while private individuals received permits for 79,200 units, up 14.9 percent.
By contrast, approvals linked to applications from public authorities declined by 23.2 percent to 6,900 units, indicating continued restraint in publicly led residential development despite the broader recovery in permit activity.
Countdown To New EU Wood Formaldehyde Restrictions
European Union – Suppliers of wood-based articles and furniture to the European Union (EU) market have until August to meet strict new rules on formaldehyde emissions.
These products were brought under the remit of the REACH Regulation (Registration, Evaluation, Authorization and Restriction of Chemicals), the central pillar of EU Chemicals legislation, in 2023 under Regulation (EU) 2023/1464. Enforcement of the new rules starts on August 6, 2026, for wood-based article and furniture makers, while vehicle interiors product suppliers have until August 6, 2027.
The new limit is 0.062 mg/m3 for these product categories. That is exactly half the value of 0.124 mg/m3 as recommended by the World Health Organization, on which the established European E1 classification is based.
Although it is stressed that the new rules do not apply to formaldehyde-containing products or materials, notably virgin wood, that release the substance into the atmosphere naturally.
According to international testing services provider Mesurlabs, a range of other goods and items are also exempt. These include second-hand articles, products used exclusively outdoors and products for exclusively industrial or professional use.
To support compliance, the European Commission Chemicals Agency (ECHA) in November 2025 published guidelines on appropriate emission testing methods under the new rules. This clarifies reference conditions in Appendix 14 of the REACH Regulation and explains how to handle results obtained from tests under different conditions.
