This paper presents a study of one of the more siginificant aspects of the wood industry, namely the Philippines-Japan wood trade. This subject area seems easily the most logical focal point of any study that would attempt to assess the importance of the wood industry in the Philippines because the exportation of logo in the main activity of the industry and Japan happens to be the biggest market for Philippine logo. The objective of this paper is to determine the impact of the Philippines-Japan wood trade on the Philippine economy.