NZ–India Trade Deal Eliminates Tariffs on Most Wood Products

The Wood Processors and Manufacturers Association (WPMA) of New Zealand said the New Zealand–India Comprehensive Free Trade Agreement (CFTA) will immediately eliminate tariffs on more than 95% of New Zealand wood products exported to India.

Commenting on the agreement, WPMA Chief Executive Mark Ross said India is poised to become one of the world’s largest wood consumers, with its wood products market projected to grow from US$1 billion in 2025 to US$1.47 billion by 2029, alongside estimated economic growth of about 8%.

“This tariff elimination on over 95% of timber, lumber, and their derivatives exported to India presents significant opportunities for New Zealand wood processors and manufacturers,” Ross said.

The agreement removes tariffs on products covered under Harmonized Systems Codes 44 (wood and articles of wood), 47 (pulp of wood), and 48 (paperboard). WPMA said current tariffs on most New Zealand wood products range from 5.5–11%, adding costs and reducing profitability. The remaining 5% of tariffs will be phased out over seven years.

WPMA said capturing the opportunity will require coordinated efforts across the sector to promote New Zealand radiata pine and the sustainability of New Zealand’s plantation forests, as well as higher-value outputs such as lumber, pulp, panels, engineered wood, and remanufactured products.

“Reports indicate growing demand in India for sustainably harvested softwood,” Ross said, citing factors including a rising middle class, construction-related timber shortages, greater environmental awareness, and higher disposable incomes. He added that challenges remain, including global competition and navigating Indian customs procedures.