Brazil

Brazilian Wood Exports Decline Again After Recovery in May

Data tracked by WoodFlow shows that wood product exports in May 2026 fell by 10% compared to April. However, compared with the same month last year, exports increased slightly by 2%.

This monthly decline was influenced by seasonal factors, international geopolitical factors, and the appreciation of the real against the dollar.

The significant decline in May mainly stemmed from reductions in pine sawn timber and pine plywood exports, with the export value of these two products falling by 14% and 10% respectively compared with April.

Looking ahead to the coming months, the WoodFlow CEO emphasized that the industry should continue to focus on market diversification, invest in new product development, and optimize production costs.

Mercosur-EU Agreement Presents Opportunities for Brazilian Furniture Industry

The EU is currently Brazil's second-largest trading partner. In 2025, trade between Brazil and the EU reached US$100 billion for the first time. During this period, three out of ten Brazilian exporting companies maintained sales to the European market, equivalent to 8,769 companies.

Brazilian furniture already enjoys some demand in the EU market, especially in countries such as France, Germany, Spain, Portugal, and Italy. In 2025, the industry's exports to EU countries totaled US$71.25 million, up 17.7% from the previous year. With this growth, the EU now accounts for 9.3% of Brazil's total furniture and mattress exports, up from 7.9% in 2024.

A study conducted by the Brazilian Furniture Industry Association (ABIMÓVEL) in partnership with market intelligence firm IEMI estimates that Brazilian furniture exports to the EU could grow by up to 20% once the agreement takes effect. Realizing this potential depends on many factors, including adapting to EU requirements and finding the markets and channels that best match each product's characteristics.

Brazilian Government Allocates R$337 Million to Combat Forest Fires and Deforestation

On June 15, a provisional measure published in Brazil allocated R$337.5 million to combat deforestation, prevent forest fires, and supervise environmental enforcement.

Of this amount, R$194.4 million will go to the Brazilian Institute of Environment and Renewable Natural Resources (Ibama), and R$143.1 million to the Chico Mendes Institute for Biodiversity Conservation (ICMBio).

For Ibama, the bulk of the funds—approximately R$149.3 million—will be used for forest fire prevention and control in federal priority areas. Protected areas are expected to expand by over 148,000 square kilometers. Another R$45.1 million will be used for environmental control and enforcement activities, with the aim of intensifying enforcement nationwide.

Brazilian Government Confirms Additional R$20 Billion for "Minha Casa, Minha Vida" Program

On June 9, the Brazilian federal government published a decree in the Official Gazette officially allocating an additional R$20 billion to the "Minha Casa, Minha Vida" (MCMV) program. This measure aims to strengthen investment in affordable housing and continue expanding the country's housing supply capacity.

Mexico

Mexico State Government Treats Over 1,648 Hectares of Forest Land Affected by Pests and Diseases

To protect residents of Mexico State and reduce risks from forest pests and diseases, the Mexico State Government, through the coordination of the State Forest Protection Agency (Probosque), carried out diagnostic, sanitation, and technical assistance actions during the first five months of 2026, treating more than 1,648 hectares of affected forest land in various parts of the state.

At the second regular meeting of the State Forest Health Technical Committee, it was reported that from January to May, 98 health alerts were issued at the request of ejido landowners and communal property owners. Among these, special attention was paid to bark beetles, considered one of the main threats to forests. Of the 98 alerts issued, 92 were related to this pest, affecting 291.81 hectares and an estimated timber volume of 44,230 cubic meters.

As part of preventive and timely response measures, experts from the Mexico State Forestry Department conducted 225 phytosanitary diagnoses on 814.07 hectares of forest land, and made 127 technical assistance visits to forest landowners and holders in 34 municipalities of Mexico State. In addition, 94 field visits were carried out to prepare and verify phytosanitary technical reports. This report is a tool for timely identification of pest and disease outbreaks and for determining the most appropriate control measures for each ecosystem.

Mexican Government Issues Agreement on Environmental Compensation for Forest Land-Use Change

The National Forestry Commission of Mexico published on June 16, 2026, in the Federal Official Gazette (DOF) the "Agreement Determining the Reference Costs for Environmental Compensation for Changes in Forest Land Use."

This agreement introduces significant adjustments to the framework for determining environmental compensation amounts related to changes in forest land use (CUSTF).

The current agreement, effective June 16, 2026, repeals the 2025 cost standard and restores the 2023 standard. This change means a return to the previously applicable scheme. This will redefine the economic basis upon which authorities calculate environmental compensation amounts. Parties involved in CUSTF projects should review their financial models and budgets, recalculate environmental compensation provisions, and assess potential adjustments to total project costs.

Forestry Commission Strengthens Support for Commercial Plantations in Michoacán

The National Forestry Commission (CONAFOR) and the government of Michoacán State have reaffirmed their commitment to promoting commercial forest plantations as a sustainable and efficient alternative for natural resource conservation, job creation, and forest community development.

Through its Commercial Plantation Management Office, CONAFOR formally signed amended agreements with beneficiaries, together with the Michoacán State Forestry Commission (COFOM), under the framework of the 2026 "Sustainable Forest Development for Wellbeing Program." These agreements aim to strengthen financial support and fund disbursement for beneficiaries of forestry projects in the state.

Tree species to be planted include Pinus leiophylla, Pinus pseudostrobus, Eucalyptus nitens, and Eucalyptus globulus, covering a total area of 456.63 hectares for timber production and pine resin extraction.

Parral Timber Industry Calls for Machinery Subsidies to Counter Imported Timber Impact

Javier Portillo Mares, President of the Parral Timber Producers Union, stated that machinery modernization through government subsidy programs is the main way for the region's timber industry to improve competitiveness and counter imported timber. Given that Mexico has free trade agreements with many countries, it is difficult to take measures to restrict foreign timber from entering the domestic market. Therefore, the most viable solution lies in strengthening the productive capacity of Mexican companies.

He explained that one of the most important forms of support is helping sawmills acquire modern machinery and promoting projects that reduce production costs through clean energy and more efficient technologies.

Javier stated that subsidies could be used to purchase solar dryers, industrial photovoltaic systems, and other alternative energy sources that help reduce operating costs for forestry companies.

Ecuador

Ecuador Makes Progress in Trade Negotiations with Canada and Morocco

Ecuador's Minister of Production, Foreign Trade, Investment and Fisheries, Luis Jaramillo, stated that Ecuador plans to sign a trade agreement with Canada by mid-July 2026, and to advance a partial trade agreement with Morocco between September and October of this year.

The official said these negotiations are part of the government's strategy to expand access for Ecuadorian products to new international markets and strengthen development opportunities for the export sector.

Currently, Ecuador is advancing negotiations with Morocco to finalize a partial trade agreement. Products that Ecuador will prioritize in the negotiations include radishes, shrimp, bananas, tuna, and timber.

Achuar Community Promotes Sustainable Forest Management

The Achuar Cupatas community, located on the banks of the Pastaza River in Ecuador's Amazon region, is developing a sustainable forest management model aimed at curbing deforestation and strengthening the local economy through responsible use of forest resources.

The project is led by the IKIAMIA Forestry Association, founded by Julián Illanes. Illanes pioneered a change in the community's natural resource management after discovering that local tree species, such as morete and ungurahua, were under increasing pressure.

The project, launched in 2023, has received support from the Food and Agriculture Organization's Forest and Farm Facility (FFF) and works with local organizations involved in forest management.

The proposal has led to the implementation of sustainable management plans, diversification of chakras (farmlands), and the development of non-timber forest products for local markets.

According to Illanes, this process has also changed the community's perception of forests, shifting from a focus solely on timber extraction to a comprehensive approach combining conservation and sustainable production.

FAO highlights the Cupatas project as an example in the Amazon region of integrating community conservation with sustainable development, especially in contexts where deforestation is increasing and vulnerable ecosystems face great pressure.

Ecuador Strengthens Productive Credit to Boost Key Economic Sectors

Ecuador maintains growth momentum in financing for productive activities. According to data published by the Ministry of Economy and Finance, credit operations in the financial system in this sector grew by 5.4% year-on-year from January to May 2026.

Data show that the agriculture, livestock, forestry, and fisheries sector is one of the fastest-growing sectors in Ecuador's financial system. From January to May 2026, this sector received US$1.954 billion in credit. This figure exceeds the US$1.578 billion allocated during the same period in 2025. As a result, financing for these activities grew by 23.8%, consolidating their position in the national production structure.

Other productive sectors also expanded. During the period under analysis, the transportation and warehousing sector saw a 20% increase in financial system allocations.

Ecuador maintained growth in productive credit in 2026. Trends in agriculture, transportation, and manufacturing indicate that more resources are being directed to key areas of the country's economic development.