Illegal logging has been a problem in Madagascar for decades and is perpetuated by extreme poverty and government corruption. Often taking the form of selective logging, the trade has been driven by high international demand for expensive, fine-grained lumber such as rosewood and ebony. Historically, logging and exporting in Madagascar have been regulated by the Malagasy government, although the logging of rare hardwoods was explicitly banned from protected areas in 2000. Since then, government orders and memos have intermittently alternated between permitting and banning exports of precious woods. The most commonly cited reason for permitting exports is to salvage valuable wood from cyclone damage, although this reasoning has come under heavy scrutiny. This oscillating availability of Malagasy rosewood and other precious woods has created a market of rising and falling prices, allowing traders or "timber barons" to stockpile illegally sourced logs during periodic bans and then flood the market when the trade windows open and prices are high.

Madagascar, officially the Republic of Madagascar (older name Malagasy Republic, Malagasy: Repoblikan'i Madagasikara [republiˈkʲan madaɡasˈkʲarə̥], French: République de Madagascar) is an island country located in the Indian Ocean off the southeastern coast of Africa. The nation comprises the island of Madagascar (the fourth-largest island in the world), as well as numerous smaller peripheral islands. Following the prehistoric breakup of the supercontinent Gondwana, Madagascar split from India around 88 million years ago, allowing plants and animals on the island to evolve in complete isolation. Consequently, Madagascar is a biodiversity hotspot in which over 90% of its wildlife is found nowhere else on Earth. The island's diverse ecosystems and unique wildlife are threatened by human settlement.

Initial human settlement of Madagascar occurred from 350 BCE and 550 CE by Austronesian peoples arriving on outrigger canoes from Borneo who were later joined around 1000 CE by Bantu migrants crossing the Mozambique Channel. Other groups continued to settle on Madagascar over time, each one making lasting contributions to Malagasy cultural life. The Malagasy ethnic group is often divided into eighteen or more sub-groups of which the largest are the Merina of the central highlands.

Illegal logging is the harvest, transportation, purchase or sale of timber in violation of laws. The harvesting procedure itself may be illegal, including using corrupt means to gain access to forests; extraction without permission or from a protected area; the cutting of protected species; or the extraction of timber in excess of agreed limits (see Box 1).

Illegalities may also occur during transport, such as illegal processing and export; fraudulent declaration to customs; and the avoidance of taxes and other charges.

Illegal logging is a pervasive problem, causing enormous damage to forests, local communities and to the economies of producer countries. Despite the economic importance of trade in timber and forest products, major international timber consumer countries, such as the EU, have no legal means to halt the import of illegally sourced forest products, because the identification of illegally logged or traded timber is technically difficult. Therefore, a legal basis for normative acts against timber imports or other products manufactured out of illegal wood is missing. Scientific methods to pinpoint the geographic origin of timber are currently under development. Possible actions to restrict imports cannot meet with WTO regulations of non-discrimination. They must instead be arranged in bilateral agreements.