The successful conclusion of negotiations on a trade agreement between New Zealand and the Gulf Cooperation Council (GCC) is welcomed by New Zealand wood product exporters. Source: Timberbiz
New Zealand currently exports around NZ$35 million in value added wood products to the GCC, including panels, paper and planed timber. The removal of all tariffs over a 5-year period and the inclusion of provisions in the trade agreement such as streamlined customs processes and reduced non-tariff barriers, will provide further encouragement to develop this export market for wood products.
“GCC countries are motivated towards sustainable construction using mass timber,” said Mark Ross, Chief Executive of the Wood Processors and Manufacturers Association.
“The adoption of mass timber and wood in construction aligns with the regions vision for sustainable development and green building practices, offering a future market growth opportunity for New Zealand wood product exporters.”
The Gulf Cooperation Council (GCC) members include Saudi Arabia, United Arab Emirates, Qatar, Kuwait, Oman and Bahrain.
“Wood processing provides multiple benefits to New Zealand, and it is positive to see the government removing unnecessary barriers and implementing new trade agreements of future benefit to our industry,” Mr Ross said.
“We thank Trade Minister, Todd McClay and his officials for the successful conclusion of the GCC trade deal.”
Building on earlier negotiations with the United Arab Emirates, New Zealand’s successful conclusion of negotiations for a NZ/Gulf Co-operation Council Free Trade Agreement should enable further expansion of trade with the GCC’s six members in the Middle East, says the New Zealand International Business Forum (NZIBF).
“The GCC region is New Zealand’s seventh largest export destination” said NZIBF Executive Director Stephen Jacobi. “This new agreement, which has been under development for some time, puts the final touch on the framework for expanding trade ties in the region”.
The FTA, once signed and entered into force, involves progressive but significant market opening, moving to 99% tariff elimination across all products over a period of 10 years.
The FTA not only provides better market access and trade facilitation for New Zealand businesses in the Gulf region but also undertakings on sustainable development and inclusion, which are a first for the GCC.
