The European Parliament is this week set to vote through new regulations that will ban the import of timber obtained through the illegal logging of tropical forests.

The Parliament will debate the new directive late this afternoon and is then expected to vote in favour of the proposed regulations tomorrow.

The European Council, which signaled last month that it would support the proposed new rules, is then expected to rubber stamp the legislation in September.

The new rules will aim close a loophole that has made it possible for European firms to import and sell timber that has been logged illegally in countries such as Brazil and Indonesia.

The trade is estimated to be worth up to £700m a year and according to figures from WWF up to 20 per cent of wood imports to the EU came from illegal sources in 2006. The green group also argued that the practice depresses global timber prices by up to 16 per cent.

The UK has supported calls for a ban on the import of illegal timber and recently-appointed Environment Secretary Caroline Spellman last month welcomed the European Council's decision to endorse the proposed regulations.

"Illegal logging leads to deforestation which is a major contributor to climate change, harms wildlife and has an impact on the economies of developing countries and the livelihoods of local people," she said at the time. "We need to make it an offence to bring illegal timber into the EU and cut off the markets through which it can be sold."

Under the new legislation, all companies importing and selling timber in the EU would be required to demonstrate that they have exercised adequate due diligence to ensure that their timber has been felled legally.

However, speaking to BusinessGreen.com Greenpeace forest policy director Sebastien Risso said that the legislation would not come into full effect until 2012 as it will take member states two years to put in place the correct verification and inspection agencies.

"This is a good step and the European Parliament must be praised for strengthening the legislation," he said. "But it is clear member states will have to take this legislation seriously, provide adequate resources to carry out the necessary checks on importers, and apply stringent sanctions on those firms that act illegally if the rules are to be successful."