The illegal logging and trading of timber represents a serious problem for the forestry sector in Central America. It is a complex phenomen, with several facets, including that it:

(i) Causes enormous economic losses to the countries of the region
(ii) Erodes the formal mechanisms of government
(iii) Has a negative impact on the rural poor
(iv) Discourages sustainable forestry activities
(v) Damages the forest resources of the region

Although the knowledge of the causes, processes, and impacts of this phenomenon is limited, everything indicates that increasing numbers of trees are taken from forests outside existing regulations, and that the wood is frequently 'laundered' in a process of legalising illegal acts. There is often a mix of the legal and illegal in the production chain. In this context, illegal logging (or unauthorized forest use) is defined as timber production completed without authorisation or without conforming to what was authorised. As such, it includes clandestine production (which escapes all state control, pays no tax, and is not included in official figures) as well as legalised production (accompanied by certain documents and licenses, paying appropriate taxes, and entering in the statistics – but which has actually been produced fraudulently, without conforming to what was authorised).

Certain policies have the potential to produce great impacts on governance, poverty reduction, and conservation. However, specific actions have not been expanded or consolidated. Finding alternatives to reduce this phenomenon, is urgent. For this, wide cooperation between government institutions and civil stakeholders (private enterprise, NGOs, churches, etc) is required. This is also a problem that cannot be confronted at a purely local and national level, but requires a regional focus. Equally, to reach satisfactory levels of effectiveness, greater cooperation between importing and exporting countries is necessary.