Duty-free access for NZ softwood - India's perspectiveFriday 22 May 2026
The Indian media has hailed the Free Trade Agreement (FTA) between New Zealand and India, signed in April 2026 as this will open trade opportunities with duty-free access for 100% of India‘s exports and lower tariffs for 95% of imports from New Zealand. Mr. Agneshwar Sen, the Trade Policy Leader from Earnst and Young (EY India) said “India has secured this without compromising its most sensitive sectors. Dairy, edible oils, sugar, spices, onions and key agricultural commodities are explicitly excluded from India’s concession list, protecting domestic farmers and industry”. Over 54% of New Zealand products, such as wood, wool and sheep meat are duty free. Some have raised questions about the FTA‘s impact on domestic suppliers, especially softwood producers. As domestic softwood production is minimal India relies on imports, importing around 85% of its softwood. New Zealand is one of the main exporters of softwood to India. According to the Ministry of Commerce, in 2019 NZ pinewood imports were valued at around US$521 million. This dropped to US$381 million in 2020 due to the pandemic leading to a decline in imports until 2024. In 2024-25, imports increased to around US$587 million. This is expected to be further amplified by the FTA, especially given the duty-free status of wood products from the start of the Agreement. India’s softwood market has been estimated as growing at 11% annually and is projected to reach US$1.06 billion by 2032. This surge is driven by rapid urbanisation, construction requirements and furniture manufacturing. Used frequently in plywood, softwood is a cost-effective choice for many plywood producers. However, plywood producers in many parts of south India say they primarily use domestic hardwoods such as rubberwood and Gurjan for plywood production. Read the full story in the latest Tropical Timber Market Report. Source & image credit: ITTO | ||
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