More than 95 per cent of New Zealand’s forestry and wood exports to India can now enter tariff free as the New Zealand-India Free Trade Agreement comes into force today.

New Zealand Forest Owners Association (NZFOA) President Dean Witehira said the agreement is a major opportunity for forest growers, wood processors and exporters to expand into one of the world’s fastest-growing economies.

“Wood and wood products are already New Zealand’s largest goods export to India, with New Zealand Trade and Enterprise (NZTE) data showing exports have tripled over the past three years to $193 million,” Witehira said.

“With tariffs on almost all remaining forestry trade set to disappear over the next seven years, there’s considerable potential to build on this.”

“We already have a strong trading relationship with India, and removing tariffs on more than 95 per cent of our existing exports puts our sector in a much better position to compete and grow.”

A Timely Opening for the Sector
Witehira said the agreement comes at an important time for forestry, with growers and processors looking to strengthen existing markets and find new opportunities.

“India’s scale and growing demand for wood products make it an attractive market for our sector. Better access gives New Zealand exporters a chance to win new customers, grow existing relationships and support further investment in forestry and wood processing at home,” he said.

Regional Jobs and Economic Contribution
“Recent NZIER research found forestry contributes $5.4 billion to New Zealand’s GDP, with a particularly important role in regional economies,” Witehira said.

“Growing our exports means more opportunities for harvesting crews, contractors, transport operators, mills and manufacturers, along with the local businesses that depend on them.

“A stronger export sector is good news for the regions where forestry is a major employer and economic contributor.”

Collaboration Beyond Tariffs
Witehira said the agreement builds on longstanding relationships between the two countries, including opportunities for collaboration on forestry research, education and industry practices.

“Our visits to India and engagement on the ground have helped lay the foundations for further collaboration, and today’s milestone gives us the opportunity to build on that work.

“We congratulate everyone involved in getting this agreement across the line. The focus now is on making the most of this improved access and turning it into more trade, investment and jobs for New Zealand,” he said.

Source: ruralnewsgroup.co.nz