Brazil

Brazil's exports to China surge 28.6%, offsetting U.S. tariff impact

Since August, the United States has imposed tariffs of up to 50% on Brazilian goods. According to the Brazilian News Agency (Agência Brasil), growth in Brazil's exports to China has offset the decline caused by increased U.S. tariffs on Brazilian products.

From August to November, Brazil's exports to China increased by 28.6% compared to the same period in 2024, while exports to the United States fell by 25.1%.

Sectors experiencing the largest declines in exports to the U.S. from August to November included: Non-metallic mineral mining (-72.9%); beverage manufacturing (-65.7%); tobacco product manufacturing (-65.7%); metal ore mining (-65.3%); forestry production (-60.2%); metal product manufacturing (-51.2%); wood product manufacturing (-49.4%).

Brazilian furniture industry adjusts export routes in response to U.S. tariffs

From January to October 2025, Brazil's furniture and mattress exports increased by 4.4% year-on-year. The United States remains the primary export destination for Brazilian furniture, accounting for 25.2% of the sector's total exports. However, this share decreased compared to the same period in 2024 (29.2%).

The decline in exports to the U.S. has led to significant changes in the industry's commercial landscape. The share of the second-largest destination, Uruguay, grew to 11.4% year-to-date (compared to 7.3% in the same period last year), while Chile remained stable at 7.4%. The most notable change is Argentina, which is regaining import capacity and now accounts for 5.8% of the sector's total imports—more than triple the figure from the same period last year (1.9%).

International protection for brazilwood advances

On December 5, at Brazil's initiative, the 20th Conference of the Parties to the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES) adopted a resolution to strengthen controls on the international trade of Brazilwood (Paubrasilia echinata), thereby expanding traceability and protecting non-commercial cultural uses.

Brazilwood is Brazil's national tree. Due to illegal logging, the species is endangered. Over the past 150 years, its population has declined by 84%, with only about 10,000 individual trees remaining. Many of these are isolated and have low regenerative capacity.

The resolution approved by CITES members updates the regulations applicable to the international trade of Brazilwood, making a more precise distinction between commercial and non-commercial uses. The text clarifies the conditions for the international circulation of Brazilwood instruments for non-commercial purposes, preserves the possibility of circulating items predating the Convention's entry into force, and reinforces the ban on trade in specimens from wild sources. It also establishes obligations for consumer countries regarding traceability, inventory marking, identification, and research into alternative wood species for making bows and instruments. These measures strengthen regulation, reduce loopholes for laundering illegal wood, and provide greater legal certainty for authorities and legitimate users.

Amazon Fund approves projects worth over BRL 2 billion in 2025

According to information from the Amazon Fund's annual donor meeting held on December 17 at the headquarters of the Brazilian National Bank for Economic and Social Development (BNDES), the Amazon Fund approved projects totaling approximately BRL 2 billion in 2025, setting a new annual record since its inception. This year, the fund expanded its scope of action, advanced restoration work in degraded areas, increased support for sustainable production activities across the entire Legal Amazon region, and expanded firefighting and forest fire prevention operations in the Cerrado and Pantanal biomes.

Managed by BNDES and coordinated by the Ministry of the Environment and Climate Change (MMA), the Amazon Fund is one of the world's largest Reducing Emissions from Deforestation and Forest Degradation (REDD+) initiatives and a primary instrument for implementing Brazil's environmental and climate policies.

With the resumption of support for new projects in 2023, its number of international donor countries increased from two to nine, including Norway, Germany, the United States, the United Kingdom, Switzerland, Japan, Denmark, Ireland, and the European Union. Since January 2023, new grant agreements totaling $309 million have been signed, with $212 million already disbursed, and additional funding commitments are underway.

Mexico

Mexico raises tariffs on products including furniture

On December 29, Mexico's Official Gazette of the Federation published amendments to the Law of General Import and Export Taxes (LIGIE), effective January 1, 2026. The core of the reform involves adjustments to 1,463 tariff lines across 17 strategic industries, imposing higher import duties on specific products from countries that do not have a free trade agreement with Mexico. This affects countries including China, South Korea, India, Vietnam, Thailand, Brazil, Indonesia, among others.

Industries covered by the reform include auto parts, light vehicles, steel, plastics, home appliances, furniture, paper and cardboard, aluminum, motorcycles, glass, soap, and cosmetics. For the furniture sector, previous tariff rates ranging from 0% to 35% have been adjusted to a new range of 25% to 35%.

Mexican timber industry notes imports affect local sector

Norma Yaneth Racancoj Osorio, a delegate of Mexico’s National Chamber of the Timber Industry in Chiapas, stated that the timber industry in Chiapas faces numerous challenges, such as insufficient technological investment leading to higher production and processing costs, and unfair competition from imported products.

She also pointed out that although there are no precise current figures for Chiapas's timber production, the state possesses significant timber harvesting potential. However, this potential remains underutilized due to difficulties in obtaining logging permits, lack of resources for forestry projects, and other reasons.

Parral forestry sees no growth due to dollar depreciation and timber imports

Javier Portillo Marrés, representative of the Parral Lumber Union in Chihuahua, Mexico, anticipates that Parral's forestry sales would remain stable in 2025. Sales would not decline but also fail to rebound compared to the previous year. The primary reasons are the dollar's exchange rate below 18 pesos and the increase in imported wood. He detailed that the presence of foreign wood—from the United States, Europe, and even South America—had forced local producers to lower their prices to stay competitive, thus limiting the potential for improving the local market.

The representative also noted that timber production in highland areas remains limited due to regulations and forest management plans. To ensure responsible management, authorized harvesting volumes have been reduced, preventing a significant increase in local supply.

Ecuador

Ecuador still faces challenges in spite of delayed EUDR

On December 18, the Council of the European Union formally adopted amendments to the EU Deforestation Regulation (EUDR), postponing its application date to December 30, 2026, and providing an additional six-month grace period for micro and small operators.

Ecuador continues to advance its preparations to comply with EUDR requirements. Although progress has been made in developing tools and guidelines, many challenges remain.

Xavier Rosero, President of the Ecuadorian Federation of Exporters (Fedexpor), noted that Ecuador has the conditions to demonstrate its compliance, but digital transformation remains a structural gap. He stated that the challenges are procedural and technical, especially for small and medium-sized producers.

Tu Casa Miti-Miti plans to finance 13,600 homes over four years

Daniel Elmir, Deputy Minister of Urban Development and Housing of Ecuador, stated that Ecuador currently faces a housing deficit of 600,000 units. The primary scheme to reduce this gap is the "Tu Casa Miti-Miti" loan program, which aims to finance 13,600 homes over four years.

He mentioned that another key program for 2026 is the construction of new free university dormitories. Pilot projects will first be launched at the Chimborazo Polytechnic Higher School, the University of Santa Elena, and the Technical University of Babahoyo, each with around 600 units.

Ecuadorian government launches national climate change information registry

On December 17, Ecuador's Ministry of Environment and Energy officially launched the National Climate Change Information Registry (RNCC). The system is a platform for collecting, managing, and providing climate information, with the goal of enhancing transparency and monitoring capabilities for actions addressing the climate change crisis.

The RNCC consists of two main modules: the National Measurement, Reporting, and Verification (MRV) System and the Climate Change Information Repository. The registry was developed by the Ministry of Environment and Energy with support from the United Nations Environment Programme (UNEP) and the Latin American Future Foundation (FFLA).

The Ecuadorian government hopes the registry will serve as a reference for developing climate change mitigation policies and setting more ambitious climate targets.