Peru has experienced a negative trade balance in wood products for many years. For example, between 2003 and 2013, wood product imports increased by almost 300% while exports barely expanded, ITTO reported.
In 2015 wood product exports declined by over 10% to just $336 million but imports only fell 4%. Clearly domestic production is not meeting local market needs and this is most obvious in the added value segment of the market.
Imported furniture in 2015 was worth $120 million and imported panels were valued at $91 million. Peru exports mainly sawnwood and plywood.
The situation is even more extreme for paper based products where imports exceed exports by a massive margin (imports $668 million, exports $67 million).
It is only for non-wood products that Peru’s trade balance is positive but these products are exported without further processing.