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How One Certification Reshaped Global Timber Trade
Description
In this episode of Global Trade with Fexingo, Lucas and Luna examine how a single certification standard — the Forest Stewardship Council — rewrote the rules of the global timber trade. They trace the FSC's origin in the 1990s, its impact on supply chains from Brazil to Indonesia, and the surprising economic ripple effects: a premium of roughly 10 to 15 percent on certified wood, the rise of dual supply chains, and the pressure it put on competitors like the Programme for the Endorsement of Forest Certification. They also explore the tension between voluntary certification and mandatory regulations like the EU's deforestation rule, which takes effect in 2026. Specific examples include IKEA's sourcing shift and the challenges for smallholder farmers in the Amazon. The episode asks whether market-driven certification can truly reshape an industry or if it ultimately creates a two-tier system that leaves smaller players behind.