New Zealand’s trade in radiata pine could be the big winners as the second round of trade talks between New Zealand and India kicked off yesterday. The new talks, which will run from July 14 until July 25, come after the first round of negotiations was held in early May, with Chris Luxon, New Zealand’s Prime Minister, saying that a mutually beneficial agreement would cut import taxes and tariffs.
As it stands, trade between the countries stands at US$1.29 billion (NZ$2.16 billion), with both parties pressing to grow trade 10-fold over the coming decade. The talks, which come more than a decade since the two countries failed to agree to a Free Trade Agreement in 2014/15, could see NZ forestry – a key part of Luxon’s Brand NZ strategy to sell green exports to the world – emerge as a growing market for Indian traders, with NZ$76.5 million worth of predominately sawlog traded through Indian ports last year, an increase from NZ$9.5 million in 2023 but far short of the NZ$326 million peak pre-pandemic.
“Our relationship with India is a key priority for New Zealand, and this agreement reflects our commitment to deepening this strategic partnership,” said Todd McClay, NZ’s Agriculture Minister, who spoke about boosting trade earlier this year. “Many of our forestry exporters have long-standing relationships in India and are keen to expand.”
Earlier this year, Mark Ross, CEO of NZ’s Wood Products Manufacturing Association (WPMA) said rebuilding relationships with key Indian agencies is crucial for New Zealand to grow its export 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.”
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. And to learn more about the push by NZ log exporters to target India as a new market to diversify from China, click here for more information.
