In recent decades forest degradation declined around the globe. While encouraging, improvements emerged unevenly in the Global South. What explains these variable trends? Using longitudinal panel models with fixed effects, I assess changes to forest area from 1993–2013 in 73 countries. Drawing from sociological institutionalism and unequal ecological exchange, I make three contributions. I find that omnibus environmental laws mitigate forest loss rather than environmental international nongovernmental organizations, and, I show that dependency on trade with wealthy countries weakens the impact of these policies. I also substantiate and theorize export-led industrialization as a leading driver of deforestation. Broadly, I argue that national states are key sites of contestation between transnational political-economic forces and legitimated but pliable environmental institutions. Developing countries adopt standardized forest protections while, facing political-economic pressures, they variably consent to predatory trade terms and streamline export infrastructures. I conclude with recommendations for future research and policy implications.