Forests are crucial for rural development, access to water, agricultural productivity, energy, soil conservation, and flood control. Forests are also home to at least 80 per cent of terrestrial biodiversity, and are a major carbon sink for regulating global climate. Over 1.6 billion people depend on forest resources for their livelihoods and many rely on forests for food and water. Trade in forest products reached a total value of $327 billion in 2004, which represents 3.7 per cent of global trade in all commodity products.

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