A new free trade deal between India and the UK is boosting New Zealand’s hopes of securing an agreement with India. That is according to Chris Luxon, New Zealand’s Prime Minister, who said a mutually beneficial agreement would cut import taxes and tariffs.
It comes as New Zealand trade officials arrived in India, aiming to secure a historic deal with India, which, in turn, could be a major fill-up for the country’s exports of radiata pine, which peaked at NZ $326 million a year before Covid.
Speaking to the media after landing in New Delhi, Todd McClay, New Zealand’s Agriculture and Trade Minister, said the talks “are an important step in our trade relationship with India and signal the two governments’ intent to deliver a high-quality outcome that benefits both countries.”
“With a population of 1.4 billion and a GDP estimated to grow to US$5.2 trillion by 2030, India offers significant opportunity for New Zealand exporters,” McClay said. “Strengthening ties with India across the board is a key part of the Government’s broader strategy to diversify and grow New Zealand’s export markets and double trade by value in 10 years.”
Why a free trade agreement will open up new export markets for NZ timber
In March, McClay said that India’s trade in NZ timber could multiply in the coming decade, with timber trade increasing from just NZ $9.5 million in 2023 to NZ $76.5 million last year.
“Our relationship with India is a key priority for New Zealand, and this agreement reflects our commitment to deepening this strategic partnership,” McClay said. “Many of our forestry exporters have long-standing relationships in India and are keen to expand.”
According to Mark Ross, CEO of NZ’s Wood Products Manufacturing Association (WPMA), rebuilding relationships with key Indian agencies is crucial for New Zealand to grow its export trade in forest products: “Connecting on values and clearly 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.”
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.”
- To learn more about the role India is now playing in driving the global trade in logs and lumber, click here for Wood Central’s special feature last year.
