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Key Takeaways
International trade and the infrastructure that supports it (regulations, institutions, practices) are important drivers and enablers of the illegal timber trade in Peru.
This Trade Discrepancy Analysis (TDA) identifies significant and consistent discrepancies in the international trade of wood and wood products coming out of Peru.
Data show consistently undervalued timber exports to Mexico and to the United States, which could be a sign of under-invoicing to avoid taxes or profit in informal currency exchange markets. In contrast, data show consistently overvalued timber exports to China and the Dominican Republic, which could be a means to transfer illicit funds into the country, or to abuse export incentives.