New trade agreement a boost for NZ wood processors

Friday 5 Jul 2024

Increased export opportunities through the removal of tariffs for 41 wood products included within the ‘Agreement on Climate Change, Trade and Sustainability’ is welcomed by New Zealand’s wood processing and manufacturing industry.

'Under brand New Zealand we have a leading story to tell as to the value our wood products and timber used in construction play in addressing climate change and sustainability challenges,' says Mark Ross, Chief Executive of the Wood Processing and Manufacturers Association.  'Not only will this new trade agreement deliver commercial benefits for New Zealand, but it will send a strong environmental message to our trading partners'.

As new countries join the collective formed by New Zealand, Switzerland, Costa Rica and Iceland, the potential to grow a commercial benefit to our wood products industry over time is significant.

‘Wood provides multiple benefits to New Zealand and it is positive to see the government backing our industry in removing unnecessary barriers and implementing new trade Agreements’ Ross says. ‘Export growth will help fund the wood processing industry, with value added wood products encouraging greater onshore processing of logs, more employment in our regions, and increasing our global contribution to embodied carbon storage’.

This Agreement also provides support to our renewable energy sector by establishing rules to prevent harmful fossil fuel subsidies and sets guidelines for ecolabelling.

Tariffs will be eliminated on over 300 environmental goods on entry into force of the Agreement, including wind and hydraulic turbines, electric vehicles, wool fibre, recycled paper, and wood products offering a more environmental alternative to carbon- intensive construction materials, such as steel and concrete. Tariff elimination will make such products more competitive, thereby incentivising use and investment in related technologies.

Click here for information on the ACCTS.

Source: Wood Processing and Manufacturers Association

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