This report provides an overview of the current status of world trade in forest products. Global production and major trade flows are presented. Domestic policies affecting trade, tariff and non-tariff barriers to trade, free trade agreements, and environmental issues and their potential implications for trade flows are also reviewed. Recent empirical approaches to modelling the spatial commodity and interregional trade in forest products are discussed. Finally, the report highlights significant gaps in our knowledge and understanding of the factors affecting trade flows and recommends areas for further research.