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News on timber industry in Latin America - August 2026

Brazil

Brazil commits to restoring 163,000 square kilometers of degraded land by 2030

On August 25, Brazil announced its first "Land Degradation Neutrality" (LDN) target. The commitment aims to restore more than 163,000 square kilometers of land by 2030. The announcement was made during the 17th Conference of the Parties (COP17) to the United Nations Convention to Combat Desertification in Ulaanbaatar, Mongolia.

To achieve this goal, the related plans include restoring native vegetation, investing in agroforestry systems, and implementing actions in nature reserves, indigenous territories, permanent protection areas, and river basins.

LDN targets are voluntary commitments made by countries to ensure that the amount of healthy and productive land within their territories remains stable or increases.

Brazil uses 2020 as the baseline year, when the country had 55.7 million hectares of land at risk of degradation. In other words, to fulfill the "zero growth" commitment, by 2030 its stock of healthy land must reach at least that level.

 "Minha Casa, Minha Vida" program drives 24.6% growth in the Northeast real estate market

In the second quarter of 2026, the real estate sector in the Northeast region performed strongly, consolidating its position as the national leader in the launch of new residential projects. Compared with the same period last year, new development projects in the region surged by 24.6%, and sales also increased by 13.6%.

The main driver of this growth was the "Minha Casa, Minha Vida" (MCMV) housing program, which accounted for 60% of all new projects launched in the Northeast during the same period. The program's influence is equally prominent nationwide: between April and June, its projects accounted for 58% of all new housing launched in Brazil, setting a historic high. 

According to a survey conducted by the Brazilian Chamber of the Construction Industry (CBIC) in partnership with Sesi and Brain Inteligência Estratégica, the Northeast region's growth rate surpassed that of the Central-West (19.1%) and Southeast (1.2%) regions, in sharp contrast to the downward trends seen in the South and North regions.


Mexico

Mexico launches nationwide reforestation campaign

On August 9, the Mexican government launched the "2026 National Reforestation Campaign," the first time the country has carried out such an initiative simultaneously across all 32 states. The initiative plans to plant 6.6 million trees and plants and sow 1 million seeds across 32,184 hectares, with the long-term goal of cultivating and planting 1.5 billion plants, trees, and seeds by 2030.

President Sheinbaum presided over the campaign's launch ceremony in Puebla. She recalled that eight years ago, with the beginning of the "Fourth Transformation," the government introduced the "Sembrando Vida" program; to date, that program has led to the planting of more than 1.5 billion trees of various kinds.

The president also signed a decree designating the second Sunday of August each year as "National Reforestation Day."

Tariffs and peso appreciation hit Jalisco furniture exports

The coordinator of the exhibition committee of the Jalisco Furniture Manufacturers Association (AFAMJAL) said that factors such as U.S. tariffs and the strengthening of the peso against the dollar have caused the state's furniture exports to fall by 8% to 10%. According to Mercedes Abundis, president of the Jalisco Furniture Manufacturers Association (AFAMJAL), Jalisco's furniture industry employs more than 25,000 workers.


Ecuador

Ecuador develops national balsa strategy to respond to new EU regulations

Ecuador's Ministry of Economic and Production Development (MDEP) announced that it is drafting a national balsa strategy to certify the origin and production conditions of the country's timber, thereby strengthening mechanisms for traceability, geolocation, legality, and sustainability.

MDEP said in a press release: "This will better prepare producers, processors, and exporters to maintain and expand their access opportunities in international markets."

The strategy is being developed against the backdrop of the European Union's new "deforestation-free products" regulation, which aims to strengthen the ability of supply chains to certify product origin and traceability.

According to data from the Ecuadorian Forestry and Wood Industry Association (AIMA), balsa accounts for about 40% of the country's total wood industry export value and is mainly used to manufacture wind turbine blade components sold to markets such as China and Europe. International demand for the product continues to grow: in 2025, global exports of balsa products reached US$301.3 million, an increase of 38% over 2024.

Ecuador's teak industry is committed to developing higher value-added production

Sabresupply S.A.S. completed its first export of teak lumber to the United States. According to the Ecuadorian Teak and Tropical Timber Producers Association (Asoteca), this move marks an important step for the industry in exporting higher value-added products and opening new markets beyond Ecuador's traditional teak markets.

The executive director of Asoteca pointed out that although this transaction is still small in scale, its goal is to change the way some Ecuadorian products enter international markets.

The main shift the industry is seeking lies in the degree of processing of teak. According to Asoteca, as of July 2026, the country held a 20% share of the regional market, behind Panama (53%) and Brazil (22%). Asoteca data show that in July alone, Ecuador exported 1,375 containers. This figure set a monthly export peak for 2026 so far.

Currently, 95% to 96% of the teak exported by Ecuador is unprocessed, while lumber accounts for only about 4% of total exports.

India accounts for a large share of Ecuador's teak demand, and developing deeper-processed products offers the possibility of diversifying the buyer base. The United States has now become one of these alternative markets. Between 2025 and 2026, small quantities of sawn teak (lumber) were also shipped to Germany, Italy, Mexico, and Belgium.

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