Brazil

Brazilian Wood Product Exports in January

In January, Brazil's total exports of wood products (excluding pulp and paper) reached USD 263.2 million, marking a 17.0% year-on-year decline.

Tropical sawnwood export volumes saw a 2.0% increase, rising from 27,700 m³ to 28,200 m³. Export value grew by 15.0%, from USD 11.0 million to USD 12.6 million.

Tropical plywood exports showed stronger growth, with volume up 22.0% (from 1,800 m³ to 2,200 m³) and value surging 40.0% (from USD 1.0 million to USD 1.4 million).

Wooden furniture exports, however, experienced a 20.0% year-on-year decline in value, dropping from USD 34.8 million in January 2025 to USD 27.7 million in January 2026.

Brazilian Government Approves BRL 5.1 Billion for Port Projects

During the 12th Extraordinary Meeting held on February 12th, the Brazilian government, through the Board of Directors of the Merchant Marine Fund (CDFMM) under the Ministry of Ports and Airports, approved nine projects aimed at expanding and modernizing Brazilian ports. The approved funding totals BRL 5.1 billion, with projections indicating the creation of over 5,000 direct jobs and a substantial boost in port operational capacity.

Approved projects include the modernization of Warehouses 16 and 17 at the Port of Santos, linked to the lease agreement with operator CLI Sul, with an investment of BRL 678.2 million; and the construction of a new private terminal at the Port of Pecem, with an investment of BRL 795.1 million.

The funding also covers other regions across Brazil. At the Port of Paranaguá (PR), the expansion and modernization of the PAR-09 terminal was approved with an investment of BRL 1.14 billion. The private-use terminal project for Nordeste Logística at the Port of Pecem (CE) was also greenlit, with an investment of BRL 795.1 million. At the Port of Santana (AP), an investment of BRL 127.8 million will be directed toward building storage and transportation systems. For the Port of Aratu (BA), projects include the construction of new silos as well as operational and structural improvements.

Brazilian Furniture Exports Decline in January

In 2025, Brazil's total exports of furniture and mattresses reached USD 769.3 million (a 0.8% increase). Despite this positive annual result, a sharp decline in export value was observed in the second half of the year following former President Trump's announcement of tariff hikes.

In January 2026, total exports of Brazilian furniture and mattresses amounted to USD 38.9 million, a decrease of 41.8% compared to December (USD 66.9 million) and 13.7% compared to January 2025 (USD 45.1 million). Looking at export destinations, the United States accounted for only 19.3% of the total, down from 28.3% in January 2025 and 34.7% in January 2024. Following the U.S. were Uruguay (12.2%), Chile (8.0%), Peru (7.7%), and the United Kingdom (6.0%). Argentina's share, which had been growing previously, declined at the beginning of the year, although its purchasing volume remains higher than in previous years.

Mexico

Depreciation of US Dollar Affects Timber Industry in Paral

According to official data from the Mexican federal government, the timber industry in Parral, Chihuahua, ranks second nationally in revenue. However, Javier Portillo, President of the local Timber Producers Association, reports that the strong peso coupled with an influx of imported timber from the United States and Chile has plunged Parral's timber sector into crisis, with sales dropping by as much as 40% in 2025.

Portillo explained that whenever the peso appreciates against the dollar, imported timber becomes more competitive, particularly from the U.S. and Chile.

Portillo emphasized that to compete with cheaper imported lumber, local producers are forced to lower their prices. On the other hand, the cost of essential forestry inputs like diesel and premium gasoline continues to rise. Despite most fuel being imported, prices haven't fallen correspondingly with the peso's appreciation, squeezing profit margins and further undermining competitiveness against foreign products.

Timber Sector in Southern Chihuahua Partially Paralyzed by Licensing Delays

The timber industry in southern Chihuahua is operating at a reduced capacity due to delays in the issuance of forest harvesting permits, impacting production levels and overall sector profitability. Javier Portillo, President of the Parral Timber Producers Association, anticipates permits will be released in the second half of February, allowing the industry to return to normal operations.

Portillo explained that this situation recurs annually at the beginning of the year, as administrative procedures typically face delays of two to four weeks, leaving producers in limbo and unable to operate at full capacity.

While some collective landowners (ejidos) have managed to continue operations using leftover permits from the previous year, the majority remain idle. Annual permits expired on December 31st and require renewal for legal forest resource utilization.

Nationwide Operation Against Illegal Logging Conducted in 28 Mexican States

Mexico's Federal Environmental Protection Agency (PROFEPA) coordinated a nationwide forest enforcement operation across 28 states from January 28th to 30th. The initiative aimed to combat illegal logging, unauthorized land-use changes, and the illegal transport of forest products. Federal authorities stated that this operation, the first multi-state forestry enforcement effort of 2026, focused on key forest areas and involved inspections of sawmills, related facilities, and transportation routes linked to the forest products supply chain. The operation led to the closure of illegal logging sites, the seizure of 394.95 cubic meters of timber, and the initiation of administrative and criminal proceedings.

Mexican Government Strengthens Forest Fire Prevention and Control Measures

February marks the dry season in Mexico, with rainfall significantly below historical averages. According to Mexico's National Meteorological Service, precipitation levels are expected to remain below average in March across the northwestern, central-western, and northeastern regions of the country. Conditions are projected to improve in April, with most of the country expected to receive near-average rainfall.

During the National Civil Protection Council meeting held from February 9th to 11th, Laura Velázquez Alzúa, National Coordinator of Civil Protection, announced that multiple federal agencies, including the Navy, have deployed aircraft and helicopters and trained personnel for aerial firefighting operations.

Alzúa noted that 95% of forest fires are caused by human activity, urging the public to refrain from starting fires or burning trash.

Data indicates that 2025 saw a total of 7,016 forest fires nationwide, with over 300 already reported in 2026 to date.

Ecuador

Ecuador's Housing Bill Aims to Strengthen Climate Resilience

On March 9, 2026, the Ecuadorian government submitted a new tax reform proposal to the National Assembly, designed to incentivize the construction of social housing and address the nation's housing deficit. According to data from the 2022 Population and Housing Census (INEC), the national housing shortfall stands at 727,689 units.

While the proposal's core focus is fiscal policy, the document introduces a novel approach integrating housing policy with climate change adaptation, sustainable urban planning, and regional resilience. The proposal argues that access to formal housing is not merely a social issue but also an environmental and risk management challenge.

According to the project brief, between March 2025 and March 2026, Ecuador experienced a total of 2,687 disaster events—including floods, landslides, and wildfires—resulting in extensive damage or destruction of housing stock. This phenomenon not only exacerbates the vulnerability of social groups facing extreme weather events but also imposes sustained costs on the state for reconstruction and emergency response.

Ecuadorian Government Forecasts 2026 as the Year of Construction and Employment

Recently, the President of Ecuador announced that 2026 will be designated as the "Year of Construction and Employment." Vice Minister of Housing Daniel Elmir affirmed that the country is undertaking substantial public works and housing construction initiatives.

To encourage homeownership, authorities have rolled out a series of housing programs. Central to the government's strategy is the Credicasa program, a financial product offered by the Bank of Social Security (Biess) featuring a 2.99% interest rate, terms up to 25 years, and no down payment requirement.

Additionally, other programs remain active, such as the Miti-Miti loan, which subsidizes 50% of interest, resulting in a rate of approximately 4.99%. For populations living in poverty and extreme poverty, the "Casa 100" program provides housing solutions at 100% no cost. To date, this program has delivered 2,500 housing units, with a target of delivering an additional 5,000 units by year-end.

Ecuador's Forestry Exports Reach Historic High

According to data from the Central Bank of Ecuador (BCE), forestry exports exceeded USD 737 million in 2025, marking a year-on-year increase of 13.41% compared to 2024. Key export destinations included China, the United States, Peru, Colombia, India, and the European Union. Currently, forestry ranks seventh among Ecuador's non-oil exports and first among manufactured goods exports.

The Ecuadorian Association of Forestry and Wood Industries (AIMA) attributes this achievement to technological modernization, the exploration of new markets, and diversification strategies—initiatives that have solidified forestry as a key pillar of the national economy.

Among forestry exports, balsa wood products accounted for the largest share at 41%. These were followed by wood-based panels (38%), paper and paperboard (9%), teak (8%), and furniture (2%).