Free Trade Agreement with India - NZ's industry reactionFriday 16 Jan 2026
This historic Agreement eliminates and reduces tariffs on 95 per cent of New Zealand’s exports - among the highest of any Indian FTA - with almost 57 per cent being duty-free from day one, increasing to 82 per cent when fully implemented, with the remaining 13 per cent subject to sharp tariff cuts. This includes an immediate tariff elimination on sheep meat, wool, coal and over 95 per cent of forestry and wood exports. It puts New Zealand exporters on an equal or better footing to our competitors across a range of sectors and opens the door to India’s rapidly expanding middle class. More >> Source: National --- Forest Owners Association welcomes New Zealand-India free trade agreement The New Zealand Forest Owners Association welcomes the announcement of a Free Trade Agreement (FTA) between New Zealand and India, which eliminates tariffs on over 95% of forestry and wood exports to over 1.4 billion Indian consumers, saying it offers new opportunities for Kiwi forest owners and wood processors in a significant growth market. The New Zealand-India FTA is a big win for all New Zealand exporters, but especially those in the forestry space, says Dr Elizabeth Heeg, Chief Executive of the New Zealand Forest Owners Association. “Forestry is already New Zealand’s largest export to India, worth NZ$126 million, including NZ$71 million in log exports.” Dr Heeg says New Zealand enjoys a reputation as a reliable, long-term supplier of premium wood products in India, and the new FTA provides the platform to lift volumes over time and grow higher-value trade in processed wood and building products. More >> Source: NZ Forest Owners Association --- The NZ Timber Industry Federation Welcomes The News Of The Signing Of The NZ – India FTA The agreement will see the immediate lifting of the existing 11% Tariff which has been applied to processed Wood Products exported from NZ to India. We welcome the huge opportunities that this presents to Sawmillers and Wood Processors in New Zealand. The potential market in India is huge and while there are difficulties such as transport and logistics the Industry is excited by the opportunities the FTA will provide to New Zealand. India has a population of 1.4b, with a growing middle class. The potential for exporting high quality processed timber products is huge. In 2023 India imported $2.3b USD of Softwood and the FTA will give NZ exporters a chance to capture an increased share of the market. After what has been a challenging year for the Industry, it is a timely and much needed boost to the industry. More >> Source: New Zealand Timber Industry Federation --- NZ-India comprehensive Free Trade Agreement tariff elimination welcomed by Wood Processors and Manufacturers of NZ The immediate tariff elimination on over 95 percent of all New Zealand wood product exports to India at entry into force of the newly signed New Zealand-India Comprehensive Free Trade Agreement (CFTA) is welcomed by the Wood Processors and Manufacturers Association of New Zealand (WPMA). “With the Indian wood products market projected to grow from USD $1 billion in 2025 to USD $1.47 billion by 2029, and India’s economy expanding at an estimated rate of 8 percent, the country is set to become one of the largest consumers of wood globally. This tariff elimination on over 95 percent of timber, lumber and their derivatives (e.g. pulp, paperboard) exported to India presents significant opportunities for New Zealand wood processors and manufacturers,” said WPMA Chief Executive, Mark Ross. The removal of tariffs on wood products covered under Harmonised Systems Codes 44 (Wood and Articles of Wood), 47 (Pulp of Wood), and 48 (Paperboard) aligns New Zealand exporters with key competitors such as Australia. Currently, tariffs on the majority of New Zealand wood products range between 5.5 and 11 percent, adding costs to trade and reducing profitability. The 5 percent remainder of tariffs on wood products being eliminated over a period of 7 years. More >> Source: Wood Processors and Manufacturers of NZ | ||
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