HS Code:
Peat, including peat litter, whether or not agglomerated (HS Code: 2703), refers to partially decayed plant material used primarily as a soil conditioner, fuel source, and in horticulture. It is harvested from peat bogs and wetlands, often processed into briquettes or loose material for various applications. Peat is valued for its high organic content and water retention properties, making it essential in gardening and agriculture. However, its extraction raises environmental concerns due to carbon emissions and habitat destruction.
Total Trade Volume
Approximately 3.5 million metric tons
Data from 2022
Source
International Trade Centre (ITC) Trade Map and UN Comtrade Database
1.2 million metric tons
34% of global trade of total trade
Increasing
0.8 million metric tons
23% of global trade of total trade
Stable
0.5 million metric tons
14% of global trade of total trade
Decreasing
0.3 million metric tons
9% of global trade of total trade
Increasing
0.2 million metric tons
6% of global trade of total trade
Stable
Average Rate
3.5% ad valorem
Highest Rate
8% (applied by certain developing countries to protect local industries)
Lowest Rate
0% (under free trade agreements like EU-Canada CETA)
Rising demand for sustainable alternatives to peat
Increased innovation in peat substitutes like coir and compost, reducing peat trade volumes in some regions
2021-2022
Growing environmental regulations
Stricter policies in Europe and North America are limiting peat extraction, pushing trade toward countries with fewer restrictions
2020-2022
Expansion of horticulture industry
Higher demand for peat in Asia-Pacific for gardening and agriculture, boosting exports from major producers
2019-2022
The European Union launched a peatland restoration program to reduce peat extraction and promote sustainable alternatives, impacting trade flows within and outside the region.
June 2022
Potential reduction in peat exports from EU countries like Ireland and Latvia, with increased costs for importers
Canada announced investments in sustainable peat harvesting technologies to meet growing global demand while addressing environmental concerns.
March 2023
Likely to strengthen Canadaโs position as the leading exporter, potentially increasing trade volume by 10-15% over the next few years
The United Kingdom introduced a ban on peat use in amateur gardening by 2024, encouraging the adoption of peat-free alternatives.
December 2021
Significant drop in peat imports to the UK, affecting major exporters like Ireland and Canada