Peru: Only processed Mahogany exports February 08, 2010
The Ministry of Environment in coordination with the
Ministry of Agriculture is working on drafting legislation
which, if enacted would restrict the export of mahogany to
only added value products.
It is anticipated by the sector that by 2011 or 2012
Mahogany exports from will only be of added value
products such as furniture. Supporters of the legislation
claim that the export of mahogany sawnwood worth, for
example, US$4,000 can be converted in the US to
products worth US$150,000 with the added bonus of
creating many jobs in the importing country.
New FTAs
The Ministry of Foreign Trade and Tourism (Mincetur)
has reportedly said that Free Trade Agreements with the
Republic of Korea and the European Union will be signed
shortly.
The media reports that in mid January meetings were held
in Washington between the negotiating teams of Peru and
Korea in order to finalise the text of the Agreement.
Behind the deal is the interest in Korea to expand market
access in Peru for vehicles. From Peru’s side it is the agriculture, forestry and fisheries sectors that are said to
benefit from the FTA. Announcements suggest the FTA
between Peru and the EU could be concluded by May this
year.
Wood exports may recover
After a difficult year, the result of the economic crisis, the
Association of Exporters (ADEX) estimated that for 2010
wood product export sales will recover. Between January
and November 2009, wood product exports totaled US$
135 million, 34% less than the same period in 2008.
According to ADEX, this decline in trade was particularly
steep because the main trade partners, the US and Mexico,
were hardest hit by the crisis. Currently, the main market
for Peru’s wood products is China, which accounts for
43% of the total, followed by Mexico, US and Dominican
Republic.
Peru
Peru Sawnwood Prices
Peru
Sawnwood, FOB Callao Port
US$
per
m³
Mahogany S&B KD 16%, 1-2'' random
lengths (US market)
