The protection oriented trade policies of the major importing countries, Japan and the U.E., with respect to most of the light manufacturing activities, including wood processing industries, are reflected in the tariff escalations of these countries. It is therefore evident that it has a certain degree of impact on the teak wood products trade. On the other hand, adoption of a market oriented economic system in Myanmar over the last few years has had a dramatic effect on the teak supply situation. Teak logs are sold by tender system regularly, and maximum prices secured. This step has resulted in the shortage of good quality log supply to the teak mills and subsequently a shortage of scantling supply to some extent.Due to the high increase in log prices of the tender sales, board prices climbed very steeply,  resulting in a sharp drop of orders. Some European buyers looked to alternative cheaper sources, and tried to reduce the average price they have been forced to pay. New mills in West Africa and Central America tried to fill this void. However, due to the inferior nature of some of their immature fast grown plantation teak and lack of experience in the international teak trade, some poor quality shipments of sawnwood were unsuccessful, and many of the mills gave up production.High prices, which the buyers have to pay for special quality boards and planks from Asia, may have shrunk the market slightly for these types of teak products. The Myanmar Timber Enterprise, the sole exporter of teak logs and sawnwood at present, maintains a base stock of teak scantlings and sells at attractive export prices. Generally there are sufficient supplies of long and short scantlings from Myanmar, and any short fall is taken up by more expensive off-shore mills.Privatization of industries, including wood processing industries, is taking place in Myanmar under the market economy. This privatization process is also likely to influence the teak trade gradually. Nowadays, it is generally accepted in the timber producing tropical countries of the world that maximum value can be attained from the forest resources and more employment generated through the expansion of downstream timber processing industries and manufacturing value added products. Governments of these countries have accordingly invited both local and foreign entrepreneurs to import the technology and investment to achieve this goal. Rational evolution of production and trade policies is thus taking place to accelerate these long term developments.In Myanmar, this sector is beginning to receive good response from entrepreneurs of industrialized countries as Japan, France, Italy and Singapore, and as well as the local industrialists. Especially favoured is the manufacture of teak wood solid doors, flooring blocks and high quality furniture. Priority is being given to these enterprises in the sale of teak logs and conversions. A total ban, or reduction of log exports, is expected to occur as the modernized teak wood processing plants increase in future in Myanmar.India, with its expanding population of some 800 million and growing economics, may be considered as a major player in the global teak trade. In the recent years, the timber market has been opened up with a drastic reduction in import duty on logs and veneers. The rationale for this import policy has been to feed the timber industry in this country which has been badly hit on account of lack of logs. The volume of log trade between South East Asia and India has already exceeded 1 million m3 and it is quite likely that this increasing trend will continue. Besides, India is a traditional customer of Myanmar teak; the upper middle class people tend to use teak for housing and furniture.

In summary, the teak market is identified as dynamic and very wide indeed. Teak wood is world renowned, and under no circumstances will teak loose its markets. Perhaps, the market will lose teak, especially high quality mature teak, if sustainable management systems are not strictly adhered to or enforced. Plantation teak will take some more years to mature and to supplement requirements for teak wood and products in the global market.