New Zealand and India are moving closer toward a sought-after free trade agreement, with New Zealand forestry set to reap massive benefits from growing trade between the two countries. That is, according to Todd McClay, New Zealand’s Forestry Minister, who said pulp exports have more than doubled, from $20m to $45.6 million over the past two years.
It comes as McClay unveiled a new two-way forestry trade mission with India later this year. “The outbound mission will continue to open doors for deeper commercial and government relations,” he said. “These (trade missions) are aimed at strengthening trade links, deepening industry ties, and unlocking greater value for both countries’ forestry and wood processing sectors.”
As it stands, New Zealand and India’s trade is worth $3.14 billion, with forest products alone valued at $126m (also made up of a surge of wood products, now worth $76.5 million and up from $9.5 million in 2023). “India is one of the fastest growing markets for our forestry exports – and we’re focused on turning that growth into a long-term opportunity for New Zealand exporters,” McClay said before adding that increased engagement with India is already delivering results. “Our relationship with India is a priority, and forestry is a key part of that. The goal is clear – to grow the market, remove barriers and drive better returns back to New Zealand’s foresters and processors.”
Last month, the New Zealand prime minister, Christopher Luxon, spoke about positive discussions with Indian counterparts, which could lead to a “mutually beneficial agreement.”
It comes after Wood Central reported last month that trade in radiata pine – used in lumber and logs – could multiply several times if the two governments agreed to cut import tariffs and taxes under a “mutually beneficial agreement.” According to Mark Ross, CEO of NZ’s Wood Products Manufacturing Association, rebuilding relationships with key Indian agencies is crucial for NZ to grow its trade in forest products: “Connecting on values and focusing on mutually beneficial areas of interest will be critical to the Indian Government opening the door to a longer-term trading relationship in forestry products, such as timber and lumber, with New Zealand.”
And although export opportunities remain for a range of timber and lumber products, the bulk of the export volume and receipts have previously been driven by India’s demand for New Zealand logs: “With a recent ruling from the Indian government stipulating that federal housing schemes include ‘a greater mix’ of wood, there are new opportunities opening, for example, in the Indian residential market for our sustainable wood products.”
