Wedoany.com Report-Dec.25, New Zealand and India have concluded a Comprehensive Free Trade Agreement (CFTA) that provides significant benefits for New Zealand's forest and wood products industry. More than 95 per cent of wood products exported to India will have tariffs eliminated, offering immediate tariff-free access for most timber, lumber, pulp, and paperboard.

The deal covers Harmonised System Codes 44 (Wood and Articles of Wood), 47 (Pulp of Wood), and 48 (Paperboard). Current tariffs on most New Zealand wood products range from 5.5 to 11 per cent. The remaining small portion will be phased out over seven years.

This change levels the playing field for New Zealand exporters, who previously faced higher costs compared to competitors such as Australia, which already enjoys preferential access.

India's wood products market is projected to grow from USD 1 billion in 2025 to USD 1.47 billion by 2029, supported by strong economic expansion. The agreement positions New Zealand to access one of the world's fastest-growing markets for wood.

**Prime Minister Christopher Luxon described the agreement as a landmark moment. He said: "I am delighted that, just nine months after Prime Minister Modi and I launched negotiations on this deal during my visit to India, Trade Minister Todd McClay and his counterpart Piyush Goyal have delivered."

Trade Minister Todd McClay highlighted the breakthrough for exporters. He said: "This once-in-a-generation agreement creates opportunities New Zealand exporters have never had in India. The agreement eliminates and reduces tariffs on 95 per cent of New Zealand’s exports, with almost 57 per cent being duty-free from day one and increasing to 82 per cent when fully implemented"

WPMA Chief Executive Mark Ross welcomed the tariff removal. He said: "India is set to become one of the largest consumers of wood globally. Eliminating tariffs on over 95 per cent of timber, lumber and derivative products presents a major opportunity for New Zealand processors and manufacturers."

To fully benefit, the industry plans to collaborate with the government to promote the performance and sustainability credentials of New Zealand Radiata Pine. This includes highlighting the plantation forestry model and the range of high-value processed products, such as engineered wood, panels, pulp, and remanufactured items.

The agreement follows intensive negotiations launched after Luxon's visit to India. Trade Minister McClay has made multiple visits, and the Prime Minister led a large trade mission earlier in the year.

The CFTA provides a stable framework for growth in bilateral trade. It supports New Zealand's wood sector in overcoming challenging export conditions and capitalising on rising demand in India for sustainably sourced softwood driven by construction, manufacturing, and a growing middle class.

This development offers a timely boost for the industry, enabling expanded market access and long-term opportunities in a high-potential region.