Illegal wildlife trade is the fourth most profitable illegal industry in the world trailing behind drug, gun and human trafficking; it is second only to the trafficking of narcotics in neo-tropical countries in Latin America. One of the species most affected by this trade, is the parrot. Parrot trade has occurred for over one thousand years, and it has been one of the leading causes of many parrot species becoming close to extinction. The demand for parrots as pets comes not only from people in developed nations such as European countries and the United States, but there is also a high demand for them in countries where parrots are native. The majority of captive parrots are kept in poor conditions and typically do not receive a proper diet. Illegal parrot trade is carried out by individuals who participate in the trade in order to supplement their already low incomes; this means there are no specific illegal organizations that can be targeted in order to stop the trade, and a more dynamic approach is necessary in order to combat the issue. Evidence suggests the largest demand for parrots comes from source countries, and more exotic species of parrot are sold to wealthy people residing in developed countries; places like the United States and European countries. Illegal and unsustainable poaching combined with habitat loss have driven many parrot species to become endangered. A 2008 study reports 34 species of parrots being sold in Peruvian markets, of those one was considered to be endangered while two were on the brink of endangerment. Studies project that 80,000 to 90,000 parrots are poached annually in Peru alone. There have been many conservation efforts to reduce/eliminate illegal wildlife trafficking; however, enforcing these efforts is difficult in regions where policing assets are limited and the area to police is vast. Illegal parrot trading is directly linked to declines in parrot populations, the spread of disease and poor impressions for the tourist trade. The illegal wildlife trade in Peru is a dynamic issue that must take into account for the low-income status of traffickers involved and the overwhelming demand for these birds in both native and non-native countries. The solution to reducing, and eventually eliminating, illegal parrot trade must begin by transitioning traffickers to more sustainable income subsidy opportunities, finding a balance between Peruvian’s love for keeping wild animals as pets and the monetary gain from the trade; as well as being careful not to tread on the nations entitlement to their natural wildlife endowment, and implementing sustainable parrot breeding practices into the region.