New Zealand and India’s trade in radiate pine could multiply in the coming years after the countries signed a new Memorandum of Cooperation (MOC) yesterday. The agreement, signed by Todd McClay, NZ’s Agriculture and Trade Minister, comes as NZ is looking to double its agricultural exports in India over the coming decade, with timber trade increasing from just $9.5m in 2023 to $76.5m last year.
“Our relationship with India is a key priority for New Zealand, and this agreement reflects our commitment to deepening this strategic partnership,” Mr McClay said. “Many of our forestry exporters have long-standing relationships in India and are keen to expand. This agreement will lay the groundwork for cooperation in sustainable forest management, agroforestry, research and innovation, education, and capacity building.”
According to Mark Ross, CEO of NZ’s Wood Products Manufacturing Association (WPMA), the MOC is crucial in rebuilding relationships with key Indian agencies – which has seen trade between the countries drop from a peak of NZ $326 million before the Covid pandemic.
“Connecting on values and demonstrating a clear focus 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,” he said.
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,” Ross said.
“Under brand New Zealand, we have a leading story to tell as to the value our timber and lumber products have in addressing climate change and sustainability challenges, which reflects the direction of the Indian government”. The MOC lays the groundwork for cooperation in areas such as sustainable forest management, research and innovation, capacity building, and certification.
- 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.
