The Australian Government’s Illegal Logging Prohibition Bill: WTO implications

The paper analyzes the WTO implications of Australia's Illegal Logging Prohibition Bill, which seeks to ban the import and domestic processing of illegally logged timber. It concludes that the bill is likely WTO-compatible provided it avoids discrimination between domestic and imported products and is implemented in a non-trade-restrictive manner. The author argues that GATT Article XX(g), relating to the conservation of exhaustible natural resources, provides the strongest legal defense for such measures. To minimize the risk of successful WTO challenges, the paper recommends that Australia align its due diligence requirements with international standards, such as the EU's FLEGT licenses, and provide capacity-building assistance to exporting nations.

• The Illegal Logging Prohibition Bill consists of three primary components: a ban on importing timber containing illegally logged timber and processing illegally harvested domestic raw logs; a due diligence requirement for importers and processors to mitigate illegal timber risks; and a monitoring and enforcement regime.
• The author concludes that the proposed legislation should be WTO-compatible, provided the Australian government ensures it does not protect domestic products and remains as non-trade-restrictive as possible.
• GATT Article XX(g), which allows measures relating to the conservation of exhaustible natural resources, is identified as the strongest potential legal defense for the bill because it does not require a 'necessity' test.
• To avoid violating GATT Article III (national treatment), the bill must treat imported and domestic timber equally; the author notes that while the bill applies to both, a potential discrepancy exists regarding the requirement for statements of compliance at the border for imports versus domestic processing.
• The author argues against the claim that legal and illegal timber are 'like products' under GATT Article I, asserting that compliance with national laws is a valid basis for differentiation and that treating illegal products differently does not constitute a breach.

APA

Brack, D., Chandra, A. C., & Kinasih, H. (2012). The Australian Government’s Illegal Logging Prohibition Bill: WTO implications. International Institute for Sustainable Development. https://www.iisd.org/system/files/publications/australian_Illegal_logging.pdf

Chicago

Brack, Duncan, Alexander C. Chandra, and Herjuno Kinasih. The Australian Government’s Illegal Logging Prohibition Bill: WTO implications. International Institute for Sustainable Development, 2012. https://www.iisd.org/system/files/publications/australian_Illegal_logging.pdf.

Wikipedia

{{cite report |last1=Brack |first1=Duncan |last2=Chandra |first2=Alexander C. |last3=Kinasih |first3=Herjuno |title=The Australian Government’s Illegal Logging Prohibition Bill: WTO implications |publisher=International Institute for Sustainable Development |date=July 2012 |url=https://www.iisd.org/system/files/publications/australian_Illegal_logging.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{brack2012australian, author = {Brack, Duncan and Chandra, Alexander C. and Kinasih, Herjuno}, title = {{The Australian Government’s Illegal Logging Prohibition Bill: WTO implications}}, institution = {International Institute for Sustainable Development}, year = {2012}, month = jul, url = {https://www.iisd.org/system/files/publications/australian_Illegal_logging.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }