Radiata pine exports could multiply as FTA talks signal major opportunity for NZ exporters
New Zealand’s timber sector is poised for significant growth as the Government embarks on the first in-person round of negotiations toward a Free Trade Agreement (FTA) with India.
The talks, led by Trade and Agriculture Minister and India’s Minister of Commerce and Industry follow a successful trade mission to New Delhi in April. They mark a key milestone in strengthening economic ties between the two nations.
“With a population of 1.4 billion and GDP projected to reach USD $5.2 trillion by 2030, India represents a major opportunity for New Zealand exporters,” the NZ Minister said. “This FTA will help reduce trade barriers and deliver outcomes that benefit both countries.”
New Zealand Prime Minister Chris Luxon has also endorsed the initiative, expressing confidence that a deal similar to India’s recent agreement with the UK could help unlock substantial benefits for Kiwi exporters, particularly in forestry.
Radiata pine, a mainstay of New Zealand’s timber exports, is expected to see major gains.
Trade in this product alone had peaked at NZD $326 million before the COVID-19 pandemic and has rebounded in recent years, with timber exports growing from NZD $9.5 million in 2023 to NZD $76.5 million last year.
Exporters are particularly optimistic following the resolution of prior phytosanitary disputes. Industry leaders, including the CEO of the Wood Products Manufacturing Association, have emphasised the importance of deepening agency-level relationships in India.
“With recent Indian government policy encouraging more timber use in federal housing schemes, new demand is emerging for sustainable wood products like New Zealand’s radiata pine,” said Ross.
The negotiations form part of the New Zealand Government’s broader trade strategy to double export value over the next decade by expanding into high-growth markets such as India.
“As we work to diversify and future-proof our economy, building a strategic partnership with India is a top priority,” Minister McClay added. “We’re committed to delivering a high-quality agreement that supports exporters and stimulates mutual economic growth.”
New 2025 Edition of ‘Doing Business in New Zealand’ now available
Sources: https://www.beehive.govt.nz/release/trade-negotiations-india-commence and https://woodcentral.com.au/nz-and-indias-trade-in-radiata-pine-could-multiply-under-fta/