New Zealand has successfully restored its log trade with India, once worth NZD 250 million a year, after shipments started arriving at Indian ports in March / April. The uptake in trade was one of the government’s major achievements this year, according to Todd McClay, New Zealand’s Minister for Trade and Agriculture, who celebrated the resolution of 14 Non-Tariff Barriers (NTBs).
“In the past year, we have resolved 14 Non-Tariff Barriers (NTBs), returning significant value to Kiwi exporters. These efforts directly boost our trade value and make it easier for businesses to expand into key international markets,” Minister McClay told reporters on Sunday. “Returning value to exporters directly supports our ambitious target of doubling exports by value in ten years — and with one in four Kiwi jobs tied to trade, it means more money in the back pockets of thousands of hard-working New Zealanders.”
Tackling NZ’s long-running Methyl Bromide dispute is key to closing export gap
In February, Wood Central revealed that ironing out NZ’s long-running methyl bromide dispute with India was among the country’s top trade objectives, with Minister McClay pushing to restore the $200m plus hole in log exports after successful fumigation trials conducted by the Ministry of Primary Industries (MPI), which saw the treatment of timbers occur in India rather than in New Zealand.
Until recently, India was among NZ’s top 3 markets for sawn wood, with NZ Forest Owners Association President Grant Dobson stressing its importance in protecting the country’s long-term interests: “It’s vital to get back into India. The longer we are out of that market, the harder it will be to get back in,” Mr Dobson said last year.
Now, Wood Central can reveal that more than 191,000 cubic metres of radiata pine logs arrived at Indian ports from April to June, with Scott Downs, PF Olsen’s Director of Sales and Marketing, reporting that increased shipments (from Australia, New Zealand, and Uruguay) are now arriving at port.
“Boosting the export value of farming, forestry, horticulture, and wine production are vital to our economy, as we oppose distortionary agricultural subsidies through the WTO to enhance global food security,” according to Minister McClay.
Minister McClay confirmed that the following NTBs have been resolved:
- Resolved a barrier that had affected $5 million in trade device exports to Mexico.
- Resolved labelling issues in South Korea that cleared a shipment of New Zealand cheese worth $1.8 million.
- Reduced regulatory burdens for wine and spirits exporters, including expanded labelling flexibility, with the EU.
- Restored onion exports to Indonesia, NZ’s largest onion market, through streamlined phytosanitary certification.
- Restored log exports to India following changes to NZ’s fumigation practices.
To learn more about New Zealand exports, including the New Zealand government’s strategy to sell timber into more and more markets, click here for Wood Central’s special feature.
