The U.S. market has once again become significant for the Guatemalan furniture and wood industry.
Until last June sales of furniture and forest products to the U.S. market represented 28% of total exports of the sector, by the end of 2013 sales are expected to exceed $100 million.
The information was released at the opening of the 26th edition of Expomueble, an event which "brings together all of the producers in the furniture and forest products sectors in Guatemala in an area of over 8 thousand square meters of exhibitions", reported Estrategiaynegocios.net.
The European Union has put into effect a regulation to combat trade in products manufactured with illegal timber with an emphasis on traceability.
From an article by the Costa Rican Trade Promotion Office (PROCOMER):
In March the European Union (EU) put into effect Regulation (EU) 995/2010 of the European Parliament which seeks to regulate the market for wood products in order to minimize the risk of selling illegal timber in the EU, this regulation requires the operator or company responsible for introducing a product of this nature to the region to be able to apply the principle of "due diligence", so as to ensure that timber traded is legal.
The Guatemala Forest Group consists of seven companies that manufacture products such as doors, furniture and bamboo veneers.
In an article in Siglo21.com.gt the entrepreneur and member of the Commission of Furniture Manufacturers and Forest Products (Cofama), Gerardo Gandara, said: "We have a fairly wide range of wood products and are joining forces to promote ourselves commercially abroad in the best way possible".
At the end of 2011 the country exported a total of $17.5 million, 40% higher than the $12.5 million in 2010.
The main export destinations were the United States and China, according to official reports.
"The Central American country saw improved trade in these products between 2006 and 2011 with a 49.4% increase in export volumes and prices increasing by 13.5%, according to official information.
Furniture manufacturers in Nicaragua are complaining about not having enough raw material while teak is being exported without any added value.
Furniture manufacturers are asking the government to stop exporting unprocessed wood and are demanding greater access to this raw material.
"We want to influence the government to prevent the export of sawn wood, so that we don’t become a nation that only sells raw material, non-value added wood.
The export of furniture and wood products from Guatemala shows a growth of 25% from January to March 2012.
An improved U.S. economy is proving positive for the timber sector in Guatemala. The growth of exports from January to March 2012, is equivalent to $21 million.
"Ivar Pérez, Executive at the Furniture Manufacturers Committee (Cofama) of the Guatemalan Exporters' Guild and president of Muebles Sinai, agreed that the reactivation of the U.S.
The business sector reported sales of $80 million in 2011, mainly of furniture.
Businessmen dealing in wood and furniture at the Guatemalan Association of Exporters (Agexport) reported sales of $80.46 million in 2011.
The figure represents 16.35% more than in 2010, when sales totaled $69.15 million reported PrensaLibre.com.
By items, the highest percentage of exports in 2011 were of furniture, with $22.3 million, followed by lumber, with $ 21.9 million, doors, with $10.25 million, and pallets, with $7.2 million.
Foreign sales of wood products up to July increased by $718 million, equivalent to 19.8%.
Data from the Bank of Guatemala indicates that total exports for July amounted to $4,347 million.
The main markets for Guatemalan furniture are Central America, the United States and Europe.
The president of the Furniture Manufacturers Committee and Forest Products (COFAM) of the Guatemalan Association of Exporters (Agexport), Carlos Porras, told Siglo21.com.gt that "... the increase is due to two factors: one is that product demand has increased and the other is projections of a more dynamic economy. "