1. THE INTERNATIONAL TROPICAL TIMBER ORGANIZATION Global Outlook for the Tropical Timber Trade and Furniture Export Markets Where are the Emerging Markets?

2. Trends in Tropical Timber Exports

6. Composition of Exports By Region

14. Furniture Market Trends US, Germany and Japan not expected to grow Italy, France, UK, Brazil, Spain and Mexico to grow moderately Only China expected to show high growth

15. Amongst other 40 markets India, Chile Ireland and Malaysia in high growth group General optimism of last year replaced by a more guarded posture

16. US the engine of growth for the international furniture trade - demand for imported furniture has grown however the slowing US economy may put export trade under pressure, especially for medium-low priced furniture

17. producers must prepare for weaker demand in major markets seek new niche markets, distribution systems and promotional tools introduce market specific designs and regularly launch new ranges

18. The Import “iceberg” Explosion of furniture imports to the US - account for 34% of all furniture sales 29% of all furniture imports from China - 1992 USD 69mil, over 2000 USD 1.8 bil. In 10 years just a handful of US domestic manufacturers

19. and in China Asia Pacific main force reshaping furniture trade China single most important country in region dynamics Chinese market holds promise for expanding trade in added value products

20. house ownership encouraged home getting bigger imported brands favoured reduced domestic timber supply economy opening - WTO entry

21. China market not lived up to expectations within a decade domestic production created stiff competition Now an aggressive exporter with non tariff barriers distribution channels, unclear customs and import licensing rules

22. Winning Market Share Added value exports will continue to grow at expense of primary product trade will expand at annual rate of 8-10% USD5 billion in 2001, USD 6.6 billion in 2003 Win market share in OECD countries

23. Widening base of sustainably produced timbers wage cost differentials and improving managerial skills advanced technologies and targeted promotion supportive institutions

24. The problems with using tropical timbers

25. Which tropical country has scored greatest success with tropical added value exports?

26. and why are these countries successful?

27. Where will be the fastest development of added value production?

29. THE INTERNATIONAL TROPICAL TIMBER ORGANIZATION itto@itto.or.jp