The Cairns Group, Central America & Wood Trade

The Cairns Group is an international alliance that brings together twenty countries from Southeast Asia, Africa, and Latin America, as well as Canada, all of whom seek to liberalize and standardize global agricultural trade. Functioning as an international lobby since its creation in 1986, the Cairns Group promotes the abolishment of major global tariffs and other barriers regarding the commercial exchange of agricultural products. As such, the Group works closely with the World Trade Organization (WTO). Furthermore, the Cairns Group is a leading force behind the global agenda as it relates to agricultural commerce, particularly with regards to the Agreement of Agriculture established during the Uruguay Round and within the framework of the ongoing Doha Round talks.

All members of the Cairns Group, including Australia, Colombia, Costa Rica, Brazil, Pakistan, Indonesia, and Argentina, have significant sectors of their economy tied to the agriculture industry. Furthermore, many of them grow and export numerous types of wood and lumber traded worldwide. The best and most sold lumber and timber species include teak, keruing, ramin, kapur, jongkong, and merbau, which accounted for US$1.34 billion worth of international trade in 2015. The major exporters of logs from these selected woods and lumbers were the Republic of Congo, Cameroon, Papua New Guinea, Equatorial Guinea, and Malaysia. These locations are natural sources for the selected lumber and timber varieties given that they grow best in tropical climates and most of them are endemic to the greater Indian Ocean region. In terms of imports, China is the world’s largest consumer of these lumber and timber varieties, dominating a staggering 44% of international market purchases. Meanwhile, other major importers of these woods and lumbers are India, Vietnam, Hong Kong, and Japan.

The smallest country to be a member of the Cairns Group is Costa Rica. In spite of having a total territory of merely 51.100 square kilometers, this Central American nation is an important supplier of agricultural goods. This article explores the status of agricultural markets and trade in Costa Rica.

The Cairns Group, Central America & Wood Trade

During 2015, Costa Rica exported a total of US$12.6 billion worth of goods, of which 27% or US$3.4 billion were vegetable products. Similarly, another 11% or US$1.3 billion were foodstuffs, such as sugar, fruits, and natural drinks. Lastly, 2.7% or US$346 million of Costa Rican exports in 2015 was made up of animal products, such as meat and fish. That same year, the main destinations of Costa Rican exports were the United States totaling US$4.3 billion, Guatemala with US$587 million, the Netherlands accounting for US$537 million, and Panama, which purchased US$536 from its northern neighbor. It is important to mention that Costa Rica is a member of the Central America & Dominican Republic Free Trade Agreement (CAFTA-DR) with the United States, which also brings together El Salvador, Guatemala, Honduras, and Nicaragua. Finally, during 2015, Costa Rica imported a total of US$15 billion worth of goods, which means that the country had a trade deficit of US$2.4 billion that year.

(Read more about Citrus Production and Markets in Costa Rica)