The Timber Trade Federation (TTF) is warning members of new US legislation which will affect their Burmese teak business with American companies.

In a letter to members, the TTF says the Burmese Freedom and Democracy Act comes into force on August 28 and bans US imports of sawn teak from Burma. It is a response to human rights abuses by the country’s military dictatorship.

The TTF also warns that the European Commission may follow the move and propose its own ban, possibly as early as late September.

Mark O’Brien, the TTF’s head of public affairs, said: “We are warning companies because some of them may be about to do business with US companies.

“This has been rumbling on for some time. The fact that it has now come up on the US agenda means it could be pushed up the EU‘s priorities.”

Kevin Ashby, joint managing director of Lignum International Hardwoods Ltd, said US customers made up a small fraction of the company’s teak business, which supplies the yacht-building and furniture-making industries.

Mr Ashby said the Burmese government stopped exports of sawn teak three weeks ago because of concern that shippers were dealing in illegally felled wood.

“The situation is bound to create an overall shortage on the market,” he added.

According to Customs and Excise figures, the amount of timber coming into the UK from Burma was 0.08% during 2002. It was worth some £979,000.