New Zealand\u2019s wood processing sector is pressing for political support for a free trade agreement with India, arguing that the deal is critical to restoring access to a market that has remained largely out of reach for more than a decade.<\/p>\n
The Wood Processors and Manufacturers Association (WPMA), alongside the wider BusinessNZ network, has called on all parties to maintain New Zealand\u2019s long-standing bipartisan approach to trade policy and support the New Zealand\u2013India Comprehensive Free Trade Agreement (CFTA), which is expected to be signed in New Delhi later this month.<\/p>\n
The agreement would eliminate tariffs on more than 95% of timber, lumber and related products. At present, most New Zealand wood exports to India face duties of between 5.5% and 11%, with the remainder to be phased out over several years under the proposed framework.<\/p>\n
For a sector that depends heavily on export markets, the removal of tariffs offers a route back into India, where access has been constrained by both duties and regulatory barriers. India\u2019s scale \u2014 with a population of 1.4 billion and rapidly expanding construction demand \u2014 has long been seen as a missing piece in New Zealand\u2019s trade portfolio.<\/p>\n
Mark Ross, chief executive of the WPMA, said the agreement would open up significant opportunities for processors and manufacturers, particularly in higher-value segments such as engineered wood products, panels and pulp.<\/p>\n
Trade flows between the two countries have been volatile. Exports of radiata pine collapsed following a fumigation dispute, falling from NZ$326 million in 2019 to NZ$9.5 million in 2023. Although volumes recovered to about NZ$76.5 million last year, the sector remains heavily dependent on China, leaving exporters exposed to swings in a single market.<\/p>\n
The proposed agreement is intended to rebalance that exposure. Trade Minister Todd McClay has said bilateral merchandise trade could increase from NZ$2.23 billion to NZ$8.57 billion within five years, with 57% of New Zealand\u2019s exports becoming duty-free immediately.<\/p>\n
The forestry sector has also framed the agreement as part of a broader shift towards higher-value production. For years, New Zealand has relied heavily on raw log exports, particularly into China. Greater access to India is seen as a way to expand downstream processing and capture more value domestically.<\/p>\n
More than 35 exporters and sector groups have signed an open letter urging parliament to ratify the deal ahead of the planned signing. The letter argues that the existing dispute-resolution mechanisms have done little to improve market access and that further delay risks prolonging uncertainty for exporters.<\/p>\n
New Zealand has also committed to facilitating long-term investment flows into India, particularly in manufacturing and infrastructure. This is expected to support demand for processed wood products, including engineered timber and panel products, where New Zealand producers are seeking to expand.<\/p>","protected":false},"excerpt":{"rendered":"","protected":false},"author":1,"featured_media":98418,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"Default","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[5204],"tags":[],"class_list":["post-98417","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-daily-news"],"acf":[],"yoast_head":"\n