Officially in effect! More than 95% of timber exports from this region to India will enjoy zero tariffs, with tariffs on other categories gradually eliminated over seven years

With the New Zealand-India Free Trade Agreement officially taking effect recently, more than 95% of New Zealand’s forestry and wood product exports to India will directly enjoy zero-tariff market access, while tariffs on the remaining forestry-related categories will be gradually eliminated over the next seven years.

Currently, timber and wood products are New Zealand’s largest category of goods exported to India. Over the past three years, New Zealand’s timber exports to India have tripled, reaching NZ$193 million.

The New Zealand Forest Owners Association said that demand for wood products in India is continuing to rise rapidly, and the country’s large market size offers new growth opportunities for New Zealand’s forestry sector. The zero-tariff policy will significantly enhance the competitiveness of New Zealand timber products in the Indian market, helping local exporters attract new customers and deepen existing partnerships, while also feeding back into new investment in domestic forest planting and timber processing.

A latest study by the New Zealand Institute of Economic Research (NZIER) shows that the forestry industry currently contributes NZ$5.4 billion to New Zealand’s GDP and plays a pillar role in regional economies. Once the policy takes effect, it will directly boost revenues across New Zealand’s entire forestry industry chain, create more jobs across the full chain of harvesting, logistics, processing and manufacturing, and further consolidate forestry’s pillar role in regional economies.

It is understood that, in addition to tariff reductions, the two countries will also deepen cooperation in areas such as forestry research and mutual recognition of industry standards, further removing non-tariff barriers to bilateral timber trade.

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