The impacts of the Lacey Act Amendment of 2008 on U.S. hardwood lumber and hardwood plywood imports

a r t i c l e i n f o to prohibit the import of illegally sourced plant materials and products manufactured from them into the United States and its territories, and to similarly ban their interstate transport. Trade theory suggests that the effect of the new law would be to reduce the flow of illegally sourced fiber into the United States, increasing prices. Monthly U.S. import data on tropical lumber (January 1989–June 2013) and hardwood plywood (January 1996–June 2013) quantity and unit value were used to estimate alternative statistical models that quantify the impact of the 2008 Lacey Act Amendment on import prices and import quantities of products from potential source countries. Results show that the Amendment's quantity effects are generally negative and double in magnitude in percentage terms than the price effects, consistent with expectations of the effects of a backwards shift in foreign supply against an elastic import demand. Models indicate that there have been double-digit percentage increases in prices and decreases in quantities of tropical lumber imports from Bolivia, Brazil, Indonesia, Malaysia, and Peru. Similarly large changes in hardwood plywood import prices and quantities from Brazil, Indonesia, and Malaysia have occurred, while smaller, and in some cases statistically insignificant, changes have been observed for hardwood plywood imports from The Lacey Act is a U.S. wildlife protection and anti-trafficking statute that makes it a crime to import onto U.S. territory or to transport across any state line within the U.S. or its territories any plant or animal species or derivative product made with such plants or animals that were obtained illegally. The original Lacey Act of 1900 was focused especially on the trafficking of illegally acquired wildlife, while later amendments expanded its concern to include plants. The Lacey Act Amendment of May 22, 2008 1 includes for the first time any tree species illegally obtained in the country of origin. Any product containing illegally obtained tree material (e.g., wood, paper, pulp) is now banned for import and interstate trade. Importers must also, as of December 15, 2008, file Plant and Plant Product Declaration form 505 that lists any and all tree species being imported. Although the date when this form was required upon importation varied from product to product, the Amendment stipulates that importers must adhere to the requirements regarding legal sourcing immediately. The Lacey Act Amendment of 2008 (LAA) was enacted most proximately as a …