The most recent meeting discussing the Kyoto Protocol focused on market-based mechanisms to reduce greenhouse gases. This could pave the way for initiatives that allow polluters to offset their emissions if they buy carbon sequestered through reforestation (Sandalow & Bowles 2001). But rather than lose credit when the trees are harvested, investors must continue to track the sequestered carbon once trees become timber. I examined trade statistics for the best-tracked timber species, namely mahogany, Swietenia macrophylla King (Meliaceae). Although mahogany is regulated by one of the most restrictive trade agreements, the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES), I found discrepancies in USA trade statistics of c. 30%, representing c. US$ 100 million over the last 4 years. For comparison, I also calculated differences in trade data for all sawnwood, according to the United Nations Food and Agricultural Organization (FAO); discrepancies between USA and exporter reports were c. 38%. Large accounting problems must be solved before sequestered carbon should become a globally traded commodity.