New Zealand’s peak body for wood processing is calling on all political parties to support the new free trade agreement with India, which is set to be formally signed in New Delhi next week. It comes as the Wood Processors and Manufacturers Association (WPMA) has joined the wider BusinessNZ network in backing the agreement, warning that political hesitation risks squandering a once-in-a-generation market opening for the sector.
Mark Ross, CEO of the WPMA, said the stakes for the wood processing sector could not be higher: “This Free Trade Agreement presents significant opportunities for New Zealand wood processors and manufacturers.”
Under the New Zealand–India Comprehensive Free Trade Agreement (dubbed the CFTA), tariffs on more than 95 per cent of timber, lumber, and related products exported from New Zealand will be eliminated — a sweeping shift from the existing regime, under which most wood products attract Indian duties of between 5.5 and 11 per cent, with the remaining 5 per cent to be phased out across seven years. Trade Minister Todd McClay has flagged that the deal will double bilateral merchandise trade from NZD $2.23 billion to NZD $8.57 billion within five years, with 57 per cent of New Zealand’s total exports becoming duty-free from day one.
The WPMA’s call for cross-party ratification follows Wood Central’s reporting last week that the CFTA would deliver immediate tariff-free access for most New Zealand timber, lumber, pulp, and paperboard exports, with Prime Minister Christopher Luxon hailing the agreement as a “landmark moment” achieved just nine months after negotiations formally launched during his visit to New Delhi.
New Zealand’s previous attempt to conclude a free trade agreement with India collapsed in 2014–15, and a bilateral methyl bromide fumigation dispute subsequently drove radiata pine trade from a peak of NZ$326 million in 2019 to just NZ$9.5 million in 2023 — a near-total market collapse that left New Zealand exporters heavily exposed to Chinese demand cycles. Trade has since recovered to NZ$76.5 million as of last year, but the sector has been pressing for the tariff certainty needed to rebuild long-term commercial pipelines into India at a scale that meaningfully diversifies its export base.
Whilst the open letter carries signatures from more than 35 exporters and industry bodies — among them the Forest Owners Association, Zespri, Beef + Lamb New Zealand, and the Meat Industry Association — the WPMA’s case rests squarely on the wood sector’s unfinished commercial agenda with India. Ross has previously told Wood Central that connecting on shared 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 timber and lumber products.
Under the agreement, New Zealand has also committed to facilitating NZD $34.3 billion in long-term investment into India over 15 years to support manufacturing and infrastructure development — a pipeline Ross says positions engineered wood, panels, pulp, and remanufactured products as the high-value tier New Zealand processors are best placed to supply, provided the agreement secures the political backing needed to take effect.
Please note: The deal moved from concluded text to signed agreement on 27 April 2026, with McClay and Goyal placing their names on the 1,364-page treaty at Bharat Mandapam in front of Prime Minister Christopher Luxon, as Wood Central reported. The signing locks in tariff elimination across HS Codes 44, 47 and 48, with Indian duties of between 5.5 and 11 per cent on most New Zealand wood lines wiped on day one once enabling legislation passes.
