Australia is set to scrap its 5% tariffs on all cross-laminated timber and glulam coming from the European Union as part of a new Australia-EU Free Trade Agreement that could be signed “sooner or later.” That is according to a new document obtained by Wood Central this afternoon, revealing that the vast majority of tariffs between Australia and the European Union would be eliminated ahead of fresh talks in Brussels over the coming fortnight.
As it stands, Europe is the undisputed leader in cross-laminated timber and glulam, with huge volumes of Austrian, German and Italian-sourced wood arriving at port and being used in Perth’s Boola Katatjin building, the Sydney Fish Markets, the Adelaide Aquatic Centre, and, most recently, the Atlassian Central Tower.
However, in recent years, Australian manufacturers have sought to establish a firm foothold in the local market by using Australian-grown, Australian-made timber, following major investments in NeXTimber by Timberlink (Australia’s only cross-laminated timber and glulam plant), Xlam, Hyne Timber, Australian Sustainable Hardwoods, and Wesbeam.
Where does this leave $300m Australia’s Timber Fibre Strategy?
Last year, Wood Central reported that the Australian government’s blueprint to use homegrown timber to tackle its housing crisis, boost productivity, and deliver on Albanese’s net-zero objectives was conditional on manufacturing more mass timber in Australia, using local fibre.
“The supply of mass timber products from overseas is forecast to be constrained due to competing demand and reduced global supply of fibre,” according to the new strategy, which was signed off by Julie Collins, Minister for Agriculture, Fisheries and Forestry. “If the Australian building and construction sector is to use more mass timber, it will need to be manufactured here,” it said.
Over the past 12-18 months, several projects funded by the Commonwealth-supported Australian Forest and Wood Innovations (AFWI) have focused on building new markets for local glulam and cross-laminated timber, including the Modernising Timber Windows project, which is testing new types of glulam timbers, including Australian Sustainable Hardwood’s MASSLAM, to activate country’s 200-strong supply chain of timber window manufacturers.
- To learn more about Australia’s Timber Fibre Strategy, including its six priority areas and 128 key actions for industry, the unions and state and federal government policymakers, click here for Wood Central’s special feature.
