Softwood Export Council's programs - from trade promotion and education to working on codes and standards to ensure international markets remain open to U.S. softwood products - are only possible due to USDA Foreign Agricultural Service funding. Without FAS funding, the Softwood Export Council simply would not exist.  

This article appeared in The Foreign Service Journal, April-May 2025 Issue, available at https://afsa.org/foreign-service-journal​ 

BY EVAN MANGINO
USDA research shows—and American farm groups agree—that exports are vital to U.S. rural economic success, with every $1 of agricultural exports generating more than $2 in additional economic activity. Foreign Agricultural Service (FAS) trade policy wins last year generated more than $27 billion of U.S. economic activity. That same year, our operating budget was $237 million. The FAS workforce provided U.S. taxpayers a better than 11,000 percent return on their investment in 2024.

FAS has roughly 1,000 public servants—including more than 350 locally employed (LE) staff—across 95 overseas offices. Corrected for inflation, our operating budget has shrunk by 9 percent over the last 25 years. In nominal terms, the budgets for our core export promotion programs—which generate more than $24 in return for $1 invested and require matching industry funds—have not increased since the mid-2000s. We are not a large group, but we accomplish amazing things on behalf of American farmers, ranchers, foresters, and exporters.

FAS Foreign Service officers and LE staff build and maintain relationships with foreign government officials who control access to valuable export markets. Foreign government officials won’t negotiate with individual companies. They work at the government-to-government level. The Animal and Plant Health Inspection Service (APHIS) and FAS make up the USDA Foreign Service team, an irreplaceable resource for U.S. agricultural exporters.

When our export market contacts anticipate market closures, they let us know so we can preemptively engage foreign government counterparts and keep foreign markets open to U.S. exports. When political, economic, or agronomic conditions change, and a foreign government restricts U.S. product access to an export market, we apply the full breadth of U.S. technical expertise—federal government, land-grant universities, private sector, and trade associations—and regulatory tools to get U.S. exports flowing again.
Just because the FAS Foreign Service team brings sound science, logic, and trade law to the negotiating table doesn’t mean that we succeed right away; some agricultural trade barriers can persist for years or even decades.

Our overseas offices pursue market access, adapting tactics and building alliances with foreign market stakeholders (e.g., importers, further processors, retailers, food service, and even consumers) to make compelling arguments for U.S. products. And when conditions are ripe, our institutional knowledge helps us get the best possible deal for U.S. exporters.

When U.S. companies make mistakes, we capitalize on our relationships with foreign government regulators to reach common sense accommodations, preventing the destruction of millions of dollars of U.S. products and avoiding shipping losses.
In less developed economies, we provide technical assistance to foreign governments to ensure their regulators understand the effectiveness of the U.S. regulatory system and its overlapping food safety protections. These investments expand access for U.S. products in target economies and bolster the credibility of U.S. positions in international agricultural regulatory bodies.

International entities—including the Codex Alimentarius, the World Organization for Animal Health, and others—set standards that many markets around the world adopt rather than investing in their own regulatory review processes. When we invest in our less developed trade partners’ capacity to regulate agricultural trade, we are building more predictable, rules-based trading relationships, favorable to U.S. exports.

In addition, USDA purchases hundreds of millions of dollars of U.S. agricultural commodities every year to support projects that make less developed countries more food secure, more stable, and more capable of purchasing a wider range of U.S. value-added products.

Overseas, FAS Foreign Service officers also apply local knowledge—cultural, linguistic, political, economic, structural—to inform U.S. policymakers, exporters, and producers back home. FAS analysis—informed by our literal in-the-field reporting—feeds into USDA statistical products that contribute to efficient global commodity markets and price discovery.
FAS overseas offices provide insights into local consumer demand, market structures, and market conditions that inform U.S. exporters. And FAS overseas offices’ market development activities increase U.S. exporters’ chances of landing export sales and reduce the cost of promoting U.S. products to foreign consumers.

FAS work doesn’t often grab attention or headlines. But it adds up. In 2024, our trade policy successes added nearly $9 billion to U.S. agricultural exports. Our export market development programs alone add $45 billion of U.S. economic activity every year. And U.S. agricultural exports generated $400 billion of related U.S. economic activity in 2024.

Our small but mighty corps of Foreign Service officers has been posted around the world for nearly 100 years, bringing the bounty of American agriculture to global markets—making the United States stronger, safer, and more prosperous.
Evan Mangino is the Foreign Agricultural Service vice president of the American Foreign Service Association.

Original Source:
EU proposes to delay landmark anti-deforestation law by 12 months

BRUSSELS/LONDON, Oct 2 (Reuters) - The European Commission said it would propose delaying implementation of a law banning the import of commodities linked to deforestation by a year on Wednesday, following calls from industries and governments around the world.

The law has been hailed as a landmark in the fight against climate change, but countries and industries from Brazil to Malaysia say it is protectionist and could end up excluding millions of poor, small-scale farmers from the EU market. There were also widespread warnings from industry that the EU deforestation regulation, or EUDR, would disrupt the European Union's supply chains and push up prices.

Some 20 of the EU's 27 member states asked Brussels in March to scale back and possibly suspend the law, saying it would harm the bloc's own farmers, who would be banned from exporting products grown on deforested land. The proposal would need the approval of the European Parliament and member states, the Commission said. It added that it was also publishing additional guidance documents.

EU leaders have watered down numerous environmental measures this year to try to quell months of farmers' protests over issues including the bloc's green policies and cheap imports.

Environmental campaigners slammed Wednesday's move.
"Ursula von der Leyen might as well have wielded the chainsaw herself. People in Europe don't want deforestation products but that’s what this delay will give them," said Greenpeace.

WWF said the delay cast serious doubt on the Commission's commitment to delivering on the EU’s environmental promises, while European forestry campaign group Fern, noting fires raging in the Amazon and beyond, called on the EU to strengthen rather than weaken its resolve to make the "desperately needed law" a reality. The EUDR would have, from Dec. 30, required companies importing soy, beef, cocoa, coffee, palm oil, timber, rubber and related products to prove their supply chains did not contribute to the destruction of the world's forests, or face hefty fines.

​The full proposal, including the guidance documents, is available here.

During SEC's April 2024 Mexico trade mission, conversations with lumber importers and manufacturers identified a need for clear messaging about the advantages of sourcing lumber from the US. While South American suppliers benefit from their industry's tradition of setting prices for six month or longer terms and their industry cuts metric dimensions to customer specifications, sourcing from the US has several advantages. Fast shipping times and availability of product are attracting buyers who may have traditionally purchased from South America.  This fact sheet provides a quick snapshot of the advantages of purchasing softwood lumber from the US.

​A downloadable copy is available in Spanish and English.

In May, a group of 13 US softwood lumber suppliers and trade association representatives participated in a week-long trade mission to Monterrey and Tijuana organized by the Softwood Export Council (SEC). The group met with wooden pallet and packaging producers and importer-distributors during visits to manufacturing facilities and distribution yards.  Over 65 importers and manufacturers also attended seminars and receptions where speakers presented information about US softwood lumber grades and trends affecting US softwood lumber availability and competitiveness in Mexico. Mission participants rated the mission highly. Preliminary sales reported within one month of the mission totaled $670,000 and companies project $4.16 million in sales by the end of 2023. 

Demand for US softwood lumber to Mexico is increasing at an unprecedented rate. A number of factors are contributing to this trend including Chinese manufacturer nearshoring, low labor rates, limited domestic lumber supply as a result of cartel related violence, positive impacts of the US-Mexico Canada Agreement (USMCA), and the logistical advantages of a shared border with the US. Years of education about US species have also paid off with Mexican producers reporting that they prefer the characteristics of US species to domestic or South American species. From 2017 to 2022, US softwood lumber exports to Mexico increased 66%, far surpassing growth in any other market. Mexico is now the number one international market for US softwood lumber, totaling $282 million in 2022.
 
SEC will hold a follow up mission to Mexico in April 2024.  See SEC's international events calendar for more information. 
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In October, SEC led a group of eleven US lumber industry suppliers and association staff to on a business development and education mission to Bangkok, Thailand.  Goals for the group were to learn about the Thai market for softwood lumber in remanufacturing and construction use, to develop long term supplier relationships with Thai builders, furniture and millwork manufacturers, and importers and distributors. The group also sought to understand competition from other international suppliers, issues facing Thai manufacturers and builders, and key issues facing Thailand’s wood processing and construction industries. 
 
The seminar was attended by local developers, importers, and manufacturers who have experience importing wood products from North America.  Presentations included an introduction to US species and their applications, and a presentation about the installation of preservative treated modular wood housing in Hawaii. The latter presentation specifically addressed the steps needed and feasibility of building with US softwood species in humid, insect-prone environments.

A representative from the University of Washington presented preliminary results of ground contact tests of US preservative treated wood installed in Thailand, and a member of the US delegation spoke about a large-scale pre-cut housing facility in the Philippines to illustrate the possibility of producing pre-cut housing with US species in Thailand.

During the rest of the week, the group toured manufacturing facilities for pallets, windows and doors, and mouldings, and they met with a builder/developer who participated in a past SEC inbound mission. Within one month of the mission, a US supplier reported selling product valued at over $100,000 and other mission members reported making contacts that they expect to lead to sales. 

In July, the Softwood Export Council hosted a group of eight softwood lumber buyers from Pakistan as part of a U.S. Foreign Agricultural Service sponsored mission to introduce U.S. softwood products, grades, quality control, and sustainability. The group also participated in networking sessions and mill tours meet U.S. suppliers.    

Pakistan is the region’s leading log and lumber buyer, yet prior to 2015 most buyers were unfamiliar with U.S. softwood species. To develop the market, SEC used Emerging Markets Program funds to identify market opportunities and educate importers and end users about U.S. species.  During the project SEC identified opportunities for Eastern White Pine from the Northeastern and Midwestern U.S.  FAS-Islamabad used Cochran funds to host inbound buyer missions from Pakistan in 2016 and 2018 where participants learned about U.S. manufacturing processes, quality control, how to specify softwood lumber. The group also met with U.S. suppliers during receptions. When SEC and lumber importers were unable to travel due to COVID restrictions, SEC and FAS-Islamabad held virtual exchanges for U.S. and Pakistan traders. 

Pakistan is particularly important to U.S. producers since many buyers prefer low grade lumber that is considered a by-product by U.S. mills. Buyers in Pakistan like the light color, easy machining, and durability of Eastern White Pine – attributes they learned about through SEC-led educational seminars, grading workshops, and visits to producers.

The group participated in meetings with the Northeastern Lumber Manufacturers Association, the central grading agency for Eastern White Pine. The group also participated in lumber mill tours, grading training, and visits to retailers and showrooms to see examples of Eastern White Pine in interior and structural applications. During the meetings, the group met with sales staff from Hancock Lumber, a leading producer and exporter of Eastern White Pine lumber.

After meeting with NELMA, the group traveled to Green Bay, Wisconsin where SEC led the group on a day-long tour and introduction to sustainable forest management and lumber processing at the Menominee Tribal-owned land and mill.  The Menominee Tribe is well known for their sustainable timber management. While in Wisconsin the also group participated in a dinner and networking event with Menominee staff and other softwood and hardwood lumber suppliers. The event included a very open exchange between the U.S. and Pakistan participants and the group from Pakistan noted their great appreciation for the event.  

Inbound missions such as the June 2022 Pakistan trip are invaluable for introducing international buyers to U.S. products, sustainability practices, and suppliers. They are a cost effective method for introducing groups of buyers to these concepts and to a sizable group of U.S. suppliers in a short period of time. SEC will continue to focus on inbound missions as a part of its slate of other programs to educate buyers and facilitate buyer-supplier relationships such as webinars, trade shows, and collaboration with international associations. 

In June, the SEC, SFPA and APA - the Engineered Wood Association, traveled to Bangalore, India for the 2022 Indiawood tradeshow. Working from a custom built booth that featured US species, the American Softwoods (AMSO) group met with specifiers and generated over 200 inquiries during the show.

Although U.S. softwood lumber sales to India have declined significantly during the pandemic ($25.1M in 2019, $11.3M in 2020 and $4.8M in 2021), AMSO was pleased with the interest shown in U.S. species, including Douglas fir glulam and cross-laminated timber. Attendees also noticed that the level of knowledge about U.S.  softwoods in India has increased greatly, indicating that U.S. led seminars and trade show participation in the region have been extremely effective.  This was evident by the inquiries for specific species and grades from specifiers. 

Specifiers requested specific species and grades, further solidifying American softwoods’ position in Indian markets. Indiawood 2024 is a must-attend show for SFPA members who sell in India. There’s no replacing face-to-face interaction for driving intent to specify American softwood and closing international deals.

In June 2022, SEC and U.S. suppliers of  U.S  softwood lumber attended Carrefour International du Bois, the largest wood and wood products trade show in Europe to field inquiries and answer questions about U.S. softwood species. 

The bi-annual show held in Nantes, France, is a key event for international buyers of softwood lumber and related wood products, and it attracts buyers from across Europe, North Africa, and the Middle East. U.S. softwood lumber is in high demand throughout Europe, with sales totaling $35.4 million in 2021 (up from $23.3 million in 2020).

At the show, the American Softwoods delegation fielded inquiries from the introduced over14,000 trade show attendees and discussed with them the benefits of U.S. species. The group collected 55 new contacts interested in finding suppliers or receiving more information about U.S. products. Many book visitors were seeking a replacement for Russian larch and in these cases SEC representatives recommended Douglas fir or Hemlock.  Immediately following the start of the Russia-Ukraine war, many forest certification programs such as FSC and PEFC labeled timber from Russia and Belarus as conflict timber, which stripped the supplier of certification. Other leading first world countries have also banned the import of logs and lumber from these suppliers. SEC will continue to monitor the impact of the war on demand for U.S. softwood lumber.  

Those of us whose livelihoods depend on international markets have experienced a couple of challenging years as most U.S. suppliers focused on supplying the domestic market and record high U.S. softwood lumber prices placed U.S. softwood lumber out of reach for many international buyers. However, as prices continue to soften in response to lower domestic demand, exports of U.S. softwood lumber have rebounded. From 2020 to 2021, U.S. softwood lumber export volume increased 31% and export revenue increased 56%. Total 2021 softwood lumber exports exceeded $1 billion.  While lower prices have clearly been central reason to this rebound, the U.S. is poised to continue to increase its global market share over the long term for a variety of reasons.  Many of these reasons come down to a rising global shortage of legally harvested and sustainably managed timber – factors where the U.S. excels.

For years mills have debated what to do the excess supply of lumber in U.S. South, where timber growth is twice the rate of removals. As companies established mills in the south to take advantage of the ample supply, they knew they needed to develop new international markets to consume the production.  COVID-19 and the related housing and repair and remodeling boom provided a solution, albeit temporary.  Contrary to the gloom-and-doom predictions, the market surged beyond anyone’s wildest predictions. However, rising interest rates and inflation have pushed affordability out of reach for many homebuyers and remodelers and U.S. suppliers now find themselves both competitive in and finding international markets necessary. 

International buyers who have discovered the benefits of U.S. species are pleased that U.S. product is more readily available and affordable. For example, exports to Mexico, where manufacturers prefer U.S. heat treated species and American suppliers enjoy more favorable rail prices compared to ocean freight rates from South America, U.S. exports increased from $127 million to $272 million over the past year. January-June 2021 vs 2022 export revenue is up 43% despite lower 2022 prices, and export volume is up 154%.  Buyers in Pakistan, which was a non-existent market for U.S. softwoods prior to 2017, is now the leading international market for Eastern White Pine, thanks to market development efforts by SEC. During COVID, buyers in the country were largely unable to source supply due to competition from buyers in the U.S., but with travel restrictions lifted, SEC hosted a group of eight buyers from Pakistan on an inbound mission in June where they met with suppliers.

As standing timber in much of the U.S. continues to increase, the supply of legally harvested international timber is declining.
A November 2022 ban on timber sales of old growth forests in B.C. restricted harvests on 1.4 million acres (2.6 million hectares) and analysts project that this could result in the closure of 14-20 mills. Old growth logging, which constitutes one-quarter of B.C.’s annual timber harvest is declining as availability of these forests is declining and becoming more inaccessible. Prior to the Ukraine invasion, Russia exported 28 million cubic meters of lumber annually, much of which is now subject to international conflict timber bans. While half of Russia’s lumber exports are sold to China, China’s flagging real estate market is likely to hamper those sales.

The U.S. also benefits from the global drive toward legally harvested and sustainably managed timber. Global furniture retailers are increasingly demanding chain of custody certification to ensure that the products they carry are produced from legally harvested timber – a move that is negatively affecting tropical timber in favor of SFI certified U.S. timber.  Finally, South American producers such as Brazil are facing massive annual losses which is pushing log costs to a point where they are now higher than in the U.S.  Brazil’s National Institute for Space Research estimated that between August 2020 and July 2021 3.3 million acres of forestland was lost - a 22% increase from the previous year. It marks the greatest area lost to deforestation in the Brazilian Amazon since 2006 when a total area of 3.5 million acres was cleared. These issues place the U.S. in a key position to improve its competitiveness in international markets.

The last two years have been both a challenging time for U.S. producers and a boon. While logistics will likely remain with us for a while, recent changes in the domestic economy underscore the importance of remaining diversified in our domestic and international markets. Thanks to sound forest management laws and practices, while timber supply in other areas of the world is declining, the U.S. has a long-term supply of timber – and our sustainable forest management practices only bolster our marketability. The trade groups that promote U.S. softwoods internationally remained committed to promoting U.S, softwood lumber throughout the COVID travel bans and domestic market boom, and we are now seeing customers return to international trade shows in greater numbers than prior to COVID. These customers visit our booths looking for certified products, suppliers who can provide a long-term supply, and alternatives to Russian Larch. Others specifically seek out the U.S. booth looking for specific U.S. species such as Eastern White Pine. 

With COVID in the background, export is ready to flourish. It’s a lot of work, but with so many factors working in our favor, it surely will be worth it. At a minimum, tapping into this ocean of outside demand will allow U.S. lumber companies to diversify their risk - and rewards, between domestic and international business while finding new markets for our ample domestic timber supply.

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