Latin America, a market for Canadian forest products potential and prospects for development

The Latin American market for forest products is evaluated with emphasis on the economic, social, and political aspects influencing demand and trade. Canada's political, cultural and commercial relationships with Latin America are investigated and it is concluded that, currently, among the most important factors restricting a possible increase in trade with the area are: Canadian detachment from the Inter-American System and political isolation; reduced commerce with all countries south of the United States; trade patterns imposed by economic growth and by bilateral cooperation; and economic integration among the countries of the region. Trends indicate that as Latin America increases its financial wealth and income is distributed along more equitable lines, demand for industrial forest products will rise considerably. Estimates of demand for 1965, 1975 and 1985 are given. Emphasis is placed in distinguishing between six types of forest products: sawnwood; plywood and veneer; particle board; and wood pulp and paper. Identical treatment is given to the presentation of future estimates of production and net regional deficits. Net deficits in forest products are anticipated to be, by 1975, 50 thousand m³ of plywood and veneer; 150 thousand m³ of particle board; 400 thousand m³ of fibre board; 192 thousand tons of pulp; and 1.279 million tons of newsprint. The sawnwood sector is expected to supply all domestic demand and hopefully export to other regions of the world. Future import requirements are evaluated under the assumption that all regional producers will sell their production in Latin America, therefore, the trade deficits forecast are minimal. If, however, any producing country sells forest products outside the area, net deficits are expected to increase. Because Chile is the only net exporter of industrial forest products in Latin America, its future capacity for production is evaluated. Considerable, and in some cases total, competition to Canadian forest products in Latin America should be expected from Chilean exports. The Latin American Free Trade Association agreements are the key to the marketing success of such exports. The competitive characteristics of Canadian forest products are appraised and compared to those of other important suppliers to Latin America. Provided that the present trends in production and transportation costs remain unchanged, Canada should find no great difficulty in competing with the United States, the Baltic countries, or the Soviet Union in Latin America. Canada's position relative to Chile is also stressed and special references to the Central American common Market and Latin America Free Trade Association tariff regimes are made. It is concluded that there are excellent opportunities for Canada to increase its trade in forest products with the Latin American countries, particularly with respect to newsprint and other pulp and paper products. In order to realize this potential, however, it would be necessary for the Canadian forest industries to develop a more aggressive sales strategy in the region.Forestry, Faculty ofGraduat