Removal of EU trade tariffs to sap forestry industry

Removal of EU trade tariffs to sap forestry industry

Friday 27 Mar 2026

AFPA has expressed disappointment and concerns about the new Australia-European Union Free Trade Agreement (A-EU FTA) signed by the Federal Government this week. Under the deal, Australia will eliminate tariffs on European timber imports.

AFPA Chief Executive Officer Diana Hallam said: “We echo the concerns raised by many other agriculture peak bodies today about the lack of opportunities arising from the deal for Australia’s forest industries. “Furthermore, the removal of trade tariffs – including on timber products – under the new A-EU FTA will challenge Australian sawn timber and engineered wood product manufacturers.

“Australia’s domestic timber production is already under extreme pressure, including from surging timber imports, a stagnant housing market and rising domestic costs such as energy, insurance, labour, transport and fuel – and this trade deal will further undermine the competitiveness of Australian timber.

“We are disappointed that adding further price advantage to imports into our timber market, while government is adding costs to domestic production, will be highly detrimental to local timber manufacturing, which is one of the few primary industries that doesn’t receive Federal Government support for Country of Origin labelling.”

On a more positive note, Ms Hallam highlighted that the new A-EU FTA did not include a commitment to subscribe to the EU Deforestation Regulation. “Fortunately, in a win for the sector, the A-EU FTA does not include deforestation regulation, and we will continue to engage with the EU on these problematic and trade-distorting measures in other international forums alongside the United States, Canada and New Zealand,” Ms Hallam said.

“While it’s a disappointing outcome overall, we will continue to work with the Government to advocate for our sustainable forestry industry. Currently, we don’t have a level playing field in Australia. However, with stronger support, sustainable timber industries can continue to grow, create employment, support sovereign capability, address climate change and underpin rural and regional communities.

“We call on the Government to provide Country of Origin labelling and domestic procurement rules around using more timber in construction, so we can not just survive but thrive!”

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Source: AFPA

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