WT/TPR/S/426 /Rev.1  
29 September 2022 
(22-7279) Page: 1/139 
Trade Policy Review Body   
 
  
TRADE POLICY REVIEW  
REPORT BY THE SECRETARIAT  
NEW ZEALAND  
Revision  
This report, prepared for the sixth Trade Policy Review of New  Zealand, has been drawn up by the 
WTO Secretariat on its own responsibility. The Secretariat has, as required by the Agreement 
establishing the Trade Policy Review Mechanism (Annex  3 of the Marrakesh Agreement Establishing 
the World Trade Organization), sought clarification from New  Zealand on its trade policies and 
practices.  
 
Any technical questions ari sing from this report may be addressed to Ricardo  Barba 
(tel. 022 739 5088), Ana  Cristina  Molina ( tel. 022 739 6060), and Michael  Kolie 
(tel. 022 739 5931) . 
 
Document WT/TPR/G/ 426 contains the policy statement submitted by New  Zealand.  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Note: This report was drafted in English.  
  WT/TPR/S/426 /Rev.1  • New Zealand  
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  CONTENTS  
SUMMARY  ................................ ................................ ................................ ........................  7 
1  ECONOMIC ENVIRONMENT  ................................ ................................ .........................  11 
1.1  Main Features of the Economy  ................................ ................................ .....................  11 
1.2  Recent Economic Developments  ................................ ................................ ...................  12 
1.2.1   Monetary and exchange rate policies  ................................ ................................ ..........  15 
1.2.2   Fiscal policy  ................................ ................................ ................................ ............  17 
1.2.3   Balan ce of payments  ................................ ................................ ................................  18 
1.3  Trade and Investment Performance  ................................ ................................ ..............  19 
1.3.1   Trade in goods  ................................ ................................ ................................ ........  19 
1.3.2   Trade in services  ................................ ................................ ................................ ..... 21 
1.3.3   Foreign direct investment  ................................ ................................ .........................  22 
2  TRADE AND INVESTMENT REGIMES  ................................ ................................ ...........  25 
2.1  General Framework  ................................ ................................ ................................ .... 25 
2.2  Trade Policy Formulation and Objectives  ................................ ................................ ........  26 
2.3  Trade Agreements and Arrangements  ................................ ................................ ...........  27 
2.3.1   WTO ................................ ................................ ................................ ......................  27 
2.3.2   Regional and preferential trade agreements  ................................ ................................  28 
2.3.3   Unilateral preferential regimes  ................................ ................................ ..................  33 
2.3.4   Other agreements and arrangements  ................................ ................................ .........  33 
2.4  Foreign Investment Regime  ................................ ................................ .........................  34 
2.4.1   Regulatory framework  ................................ ................................ ..............................  34 
2.4.2   Other aspects of New  Zealand's foreign investment regime  ................................ ...........  37 
3  TRADE POLICIES AND PRACTICES BY MEASURE  ................................ .........................  39 
3.1  Measures Directly Affecting Imports  ................................ ................................ ..............  39 
3.1.1   Customs procedures, valuation, and requir ements  ................................ .......................  39 
3.1.2   Rules of origin  ................................ ................................ ................................ .........  41 
3.1.3   Tariffs  ................................ ................................ ................................ ....................  42 
3.1.3.1   Applied MFN tariff  ................................ ................................ ................................ . 43 
3.1.3. 2  Bound tariff  ................................ ................................ ................................ ..........  45 
3.1.3.3   Tariff preferences  ................................ ................................ ................................ .. 46 
3.1.3.4   Tariff concessions  ................................ ................................ ................................ . 47 
3.1.4   Other charges affecting imports  ................................ ................................ .................  47 
3.1.4.1   Internal taxes  ................................ ................................ ................................ ....... 48 
3.1.5   Import prohibitions, restrictions, and licensing  ................................ ............................  49 
3.1.6   Anti-dumping, countervailing, and safeguard measures  ................................ ................  49 
3.1.6.1   Safeguards ................................ ................................ ................................ ...........  51 
3.2  Measures Directly Affecting Exports  ................................ ................................ ..............  52 
3.2.1   Customs procedures and requirements  ................................ ................................ ....... 52 
3.2.2   Taxes, charges, and levies  ................................ ................................ ........................  52 WT/TPR/S/426 /Rev.1  • New Zealand  
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  3.2.3   Export prohibitions, restrictions, and licensing  ................................ .............................  52 
3.2.4   Export support and promotion  ................................ ................................ ...................  53 
3.2.5   Export finance, insurance, and guar antees  ................................ ................................ .. 54 
3.3  Measures Affecting Production and Trade ................................ ................................ ....... 54 
3.3.1   Incentives  ................................ ................................ ................................ ...............  54 
3.3.2   Subsidies and other government assistance  ................................ ................................  56 
3.3.3   Standards and other technical requirements  ................................ ...............................  56 
3.3.3.1   Standardization  ................................ ................................ ................................ .... 56 
3.3.3.2   Conformance system  ................................ ................................ .............................  59 
3.3.3.3   Labelling and marking  ................................ ................................ ...........................  61 
3.3.4  Sanitary and phytosanitary requirements  ................................ ................................ .... 62 
3.3.4.1   General framework  ................................ ................................ ...............................  62 
3.3.4.2   Food products  ................................ ................................ ................................ ...... 64 
3.3.4.3   Animal and plant products ................................ ................................ ......................  67 
3.3.4.4   Genetically modified organisms (GMOs)  ................................ ................................ ... 67 
3.3.5   Competition policy and price controls  ................................ ................................ .........  68 
3.3.5.1   Competition policy  ................................ ................................ ................................  68 
3.3.5.1.1   Enforcement  ................................ ................................ ................................ ...... 70 
3.3.5.1.2   International cooperation  ................................ ................................ ....................  71 
3.3.5.2   Price controls  ................................ ................................ ................................ ....... 72 
3.3.6   State tradi ng, state -owned enterprises, and privatization  ................................ .............  73 
3.3.7   Government procurement  ................................ ................................ .........................  74 
3.3.7.1   Thresholds and exemptions  ................................ ................................ ....................  77 
3.3.7.2   International cooperation  ................................ ................................ .......................  78 
3.3.8   Intellectual property rights  ................................ ................................ ........................  78 
3.3.8.1   Overview  ................................ ................................ ................................ .............  78 
3.3.8.2   Policies on promotion and commercialization of innovation  ................................ .........  79 
3.3.8.3   International context  ................................ ................................ .............................  81 
3.3.8.4  Genetic resources, traditional knowledge, and folklore  ................................ ...............  82 
3.3.8.5   Patents  ................................ ................................ ................................ ................  83 
3.3.8.6   Undisclosed information  ................................ ................................ .........................  84 
3.3.8.7   Plant variety rights  ................................ ................................ ................................  84 
3.3.8.8  Industrial designs  ................................ ................................ ................................ . 85 
3.3.8.9   Trademarks  ................................ ................................ ................................ ..........  86 
3.3.8.10   Geographical indications  ................................ ................................ ......................  86 
3.3.8.11   Copyright and related rights  ................................ ................................ .................  87 
3.3.8.12   Enforcement  ................................ ................................ ................................ ....... 88 
3.3.8.13   IP matters relating to COVID -19 ................................ ................................ ...........  90 
4  TRADE POLICIES BY SECTOR  ................................ ................................ ......................  93 
4.1  Agriculture, Forestry, and Fisheries  ................................ ................................ ...............  93 WT/TPR/S/426 /Rev.1  • New Zealand  
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  4.1.1   Overview  ................................ ................................ ................................ ................  93 
4.1.2   Border measures  ................................ ................................ ................................ ..... 93 
4.1.2.1   Import measures  ................................ ................................ ................................ .. 93 
4.1.2.2   Export measures  ................................ ................................ ................................ ... 94 
4.1.3   Domestic support  ................................ ................................ ................................ .... 95 
4.1.4   Dairy industry  ................................ ................................ ................................ .........  95 
4.1.5   Fisheries  ................................ ................................ ................................ .................  96 
4.1.6   Environmental measures and sustainable management of resources  ..............................  97 
4.2  Energy  ................................ ................................ ................................ ......................  98 
4.2.1   Electricity  ................................ ................................ ................................ ...............  99 
4.2.2   Hydrocarbons  ................................ ................................ ................................ .........  100 
4.3  Manufacturing  ................................ ................................ ................................ ...........  102 
4.4  Services  ................................ ................................ ................................ ...................  104 
4.4.1   Financial services  ................................ ................................ ................................ .... 104 
4.4.1.1   Banking  ................................ ................................ ................................ ..............  105 
4.4.1.2   Insurance  ................................ ................................ ................................ ...........  109 
4.4.1.3   Other financial services  ................................ ................................ .........................  110 
4.4.2   Telecommunications  ................................ ................................ ................................  111 
4.4.2.1   General features and market structure  ................................ ................................ ... 111 
4.4.2.2   Regulatory regime  ................................ ................................ ...............................  113 
4.4.2.3   Digital inclusion and cybersecurity  ................................ ................................ .........  114 
4.4.3   Transport services  ................................ ................................ ................................ .. 116 
4.4.3.1   Overview  ................................ ................................ ................................ ............  116 
4.4.3.2   Air transport  ................................ ................................ ................................ ........  117 
4.4.3.3   Maritime transport  ................................ ................................ ...............................  119 
4.4.4   Tourism  ................................ ................................ ................................ .................  120 
5  APPENDIX TABLES  ................................ ................................ ................................ ... 123  
 
CHARTS  
 
Chart 1.1 GDP by economic activity (at basic current prices), 2019/20  ................................ .... 12 
Chart 1.2 Exchange rates, January 2015 -December 2021  ................................ ......................  17 
Chart 1.3 Product composition of merchandise trade by main HS section, 2015 and 2021  ..........  20 
Chart 1.4 Direction of merchandise trade, 2015 and 2021  ................................ ......................  21 
Chart 3.1 Distribution of MFN applied tariff rates, 2014 and 2021  ................................ ...........  44 
Chart 3.2 Average applied MFN and bound tariff rates, by HS section, 2014 and 2021  ...............  45 
Chart 3.3 Tari ff escalation by 2 -digit ISIC industry, 2021  ................................ .......................  45 
Chart 3.4 Charges for the use of intellectual property, n.i.e., 2015 -20 ................................ ..... 79 
 WT/TPR/S/426 /Rev.1  • New Zealand  
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  TABLES  
 
Table 1.1 Selected macroeconomic indicators, 2014/15 -2020/21  ................................ ............  14 
Table 1.2 Balance of payments, 2014/15 -2020/21  ................................ ................................  18 
Table 1.3 Composition of trade in services, 2014/15 -2020/21  ................................ ................  22 
Table 1.4 Inward stock of foreign direct investment, 2014/15 -2020/21  ................................ ... 23 
Table 1.5 Outward stock of for eign direct investment, 2014/15 -2020/21  ................................ . 24 
Table 2.1 FTAs signed or upgraded during 2015 -21 ................................ ...............................  29 
Table 3.1 Goods clearance fees and hourly rate, 2022  ................................ ...........................  40 
Table 3.2 Customs Appeal Authority statistics, 2015 -20 ................................ .........................  41 
Table 3.3 Tariff structure of New  Zealand, 2014 and 2021  ................................ .....................  43 
Table 3.4 Tariff lines where the MFN applied rates exceed bound rates, 2021  ...........................  46 
Table 3.5 Summary analysis of New Zealand's preferential tariffs, 2021  ................................ .. 46 
Table 3.6 Health Promotion Agency (HPA) levy rates for alcohol, 2022  ................................ .... 48 
Table 3.7 Trade remedy investigations, 2016 -21 ................................ ................................ ... 50 
Table 3.8 Definitive anti -dumping measures, as of 31  December  2021 ................................ .... 51 
Table 3.9 Subsidy schemes, 2021  ................................ ................................ .......................  56 
Table 3.10 New  Zealand standards, 2015 -21 ................................ ................................ ........  58 
Table 3.11 Food of High Regulatory Interest  ................................ ................................ .........  65 
Table 3.12 Food of Increased Regulatory Interest  ................................ ................................ . 66 
Table 3.13 Data on competition enforcement, 2016 -20 ................................ ..........................  71 
Table 3.14 Signed bilateral agreements/arrangements on competi tion issues, 2016 -21 .............  72 
Table 3.15 Summary of RTAs with competition chapters signed, 2016 -21 ................................  72 
Table 3.16 Illustrative list of firms with state participation, 2021  ................................ .............  73 
Table 3.17 Government procurement in New Zealand, 2015 -20 ................................ ..............  75 
Table 3.18 Number of IP items intercepted and IP interception incidents, 2014 -19 ....................  89 
Table 4.1 Agriculture pr oduction by main categories, 2015 -20 ................................ ................  93 
Table 4.2 Energy production and its breakdown by source, 2015 -20 ................................ ........  98 
Table 4.3 Total energy consumption by sector/user, 2015 -20 ................................ .................  98 
Table 4.4 New  Zealand's installed power generation capacity, 2015 -20 ................................ .... 99 
Table 4.5 New  Zealand's production, imports, and exports of oil and gas, 2015 -20 ..................  101 
Table 4.6 Manufacturing production by main subsector , 2015 -20 ................................ ...........  102 
Table 4.7 Registered banks, 2022  ................................ ................................ ......................  106 
Table 4.8 Banking sector indicators, 2015 -20 ................................ ................................ ...... 107 
Table 4.9 New  Zealand telecommunications snapshot statistics, 2013/14 -2019/20  ...................  111 
Table 4.10 Visitors by key markets wit h percentage of total, 2015 -21 ................................ .... 120 
 
  WT/TPR/S/426 /Rev.1  • New Zealand  
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  BOXES  
 
Box 2.1 Selected reforms simplifying New Zealand's foreign investment regime  ........................  35 
Box 3.1 Development process of New  Zealand standards  ................................ .......................  58 
Box 3.2 Conformity assessments and related MRAs signed by New  Zealand, 2022  ....................  61 
 
APPENDIX TABLES  
 
Table A1.1 Merchandise exports by HS section and major chapter/subheading, 2015 -21 ..........  123 
Table A1.2 Merchandise exports by destination, 2015 -21 ................................ ......................  124 
Table A1.3 Merchandise imports by HS section  and major chapter/subheading, 2015 -21 ..........  125 
Table A1.4 Merchandise imports by origin, 2015 -21 ................................ .............................  126 
Table A2.1 Selected notifications to the WTO, 1  January  2015 to 31  December  2021 ................  127 
Table A2.2 FTAs in force, as at 31  December  2021 ................................ ...............................  129 
Table A3.1 MFN applie d tariff summary, 2021  ................................ ................................ ...... 130 
Table A3.2 Intellectual property protection, 2022  ................................ ................................ . 132 
Table A3.3 Applications for and registrations of trademarks, patents, and industrial  
designs, 2014 -20 ................................ ................................ ................................ .............  135 
Table A3.4 Standards and conformance infrastructure, 2022  ................................ .................  136 
Table  A4.1 New Zealand air transport agreements, 2021  ................................ ......................  137 
 
  WT/TPR/S/426 /Rev.1  • New Zealand  
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  SUMMARY  
1. During the review period 2015 -21, New  Zealand continued to strengthen its position as one 
of the most open economies in the world and updated some elements of its trade and investment 
regime. New  Zealand considers trade as critical for its prosperity and seeks to ensure that trade is 
inclusive.  
2. New Zealand's real GDP grew 3.4% annually on average between 2015 and 2019, reflecting 
positive  terms of trade  but witnessed the larg est fall on record in the second quarter of 2020 due to 
the COVID -19 pandemic. The activity rebounded strongly in the second half of 2020 behind a 
substantial fiscal policy response focused on cushioning the pandemic's negative effects on 
households and bu sinesses. The competitiveness of New  Zealand's main goods exports, notably live 
animals and animal products also supported the resilience of the economy. With one in four 
New Zealand ers' jobs dependent on exports, trade is seen by the authorities as the cr itical enabler 
of post-pandemic economic recovery . According to the IMF, New  Zealand's real GDP growth rate 
in 2021 is projected to be 5.1%, compounded by strong domestic demand. Nonetheless, lower 
labour supply because of muted migration flows, weak capital accumulation, and slowing productivity 
growth are expected to adversely affect potential output.  
3. According to the IMF, New  Zealand's fiscal and monetary mix has been successful in promoting 
economic recovery and maintain ing price stability . Under recent a mendments to its monetary policy 
framework , price stability is defined as annual increases in the consumer price index of between 1% 
and 3% on average over the medium term, with a focus on keeping future average inflation  near 
the 2% midpoint of the  Reserve Bank of New  Zealand (RBNZ)'s target. The RBNZ has also included, 
for the first time, a second objective of encouraging maximum sustainable employment. Annual 
inflation averaged 1.3% during 2015 -20; the IMF estimates tha t it increased to 3% in 2021 owing 
to higher commodity prices and increases in shipping costs. During the review period, New  Zealand 
registered fiscal surpluses up to 2018/19 , largel y due to spending restraint . Fiscal deficits followed 
in 2019/20 and 2020/ 21 on account of the large-scale fiscal measures (expenditure and revenue 
forgone) in response to the pandemic.   
4. New Zealand's external position, including its nominal and real exchange rates, is broadly in 
line with fundamentals and desired policy setting s in view of the IMF. The current account deficit 
(2.7% of GDP on average during 2015 -21) was mainly driven by a large trade deficit. New Zealand' s 
exports have performed better than the Government initially expected during the pandemic , 
providing much nee ded help to the economy.  However, t he global spread of COVID -19 and the 
resulting containment measures took a heavy toll on New Zealand' s merchandise exports and 
imports. In 2020/21, New  Zealand' s total  two-way trade had its largest recorded annual fall.  Trade 
performance across New Zealand' s key trading partners has varied widely through the pandemic , 
based on a range of factors, including the individual pandemic  experience of each partner and the 
respective bilateral export/import product mix.  
5. During the review period, New  Zealand developed its new trade strategy , the Trade for All 
Agenda, based on a wide public consultation process that took place in 2018 . The Agenda aims to 
ensure that New Zealand's trade policy benefits  all New Zealand ers and is coherent and supportive 
of other government policies targeted to achieve  sustainable and inclusive economic development . 
In June  2020, New  Zealand also adopted the Trade  Recovery Strategy , which included: 
(i) broadening the support for exporters; (ii)  working towards strengthening and reforming the WTO  
and p ursuing trade agreements ; and (iii)  refresh ing major  trade relationships  to achieve further 
trade diversification.  
6. New Zealand is a firm supporter of the multilateral trading system and remains activ ely 
engaged at the WTO. It took leadership roles as chair s of various WTO bodies, including the General 
Council in  2020, and promoted and participated in discussions on joint initiatives such as, for 
example, micro, small, and medium -sized enterprises, e -commerce, services domestic regulation, 
investment facilitation, trade and gender, and trade and climate. It also supports a TRIPS waiver  on 
COVID -19 vaccines, as well as reforms to strengthen the WTO. In 2015, New  Zealand  ratified the 
Agreement on Trade Fa cilitation , endorsed  the expansion of the Information Technology Agreement , 
and also joined the plurilateral Agreement on Government Procurement  (GPA). New  Zealand  
maintain s a strong record of notifications, providing more than 300  notifications to the WTO 
since January  2015. During the review period, New  Zealand  was involved as a complainant in 
one dispute settlement case  and has not been a respondent.  WT/TPR/S/426 /Rev.1  • New Zealand  
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  7. New Zealand  is also pursuing its trade objectives through regional and bilateral  initiatives. 
Since 2015, New Zealand  added four new regional trade agreements (RTAs)  to its network, which 
currently consists of 13  RTAs involving 29  economies, including some of its main trading partners,  
namely Australia, China, and Japan. The new four RTAs, all in force, are: the 
New Zealand -Republic  of Korea FTA, the Pacific Agreement on Closer Economic Relations Plus 
(PACER Plus), the Comprehensive and Progressive Agreement for Trans -Pacific Partnership (CPTPP), 
and the Regional Comprehensive Economic  Partnership (RCEP). In addition, New Zealand signed an 
FTA with the United  Kingdom in February  2022, and further RTAs are under negotiation with the 
European  Union, India, and the Pacific Alliance  (Chile, Colombia, Mexico, and Peru) . 
8. In general, f oreign i nvestment s in New  Zealand are  permitted  without restrictions ; some 
exceptions apply notably to  investments involving assets deemed as sensitive, which are subject to 
approval following a screening process, and since 2020, to those involving businesses cons idered 
strategically important. New  Zealand also applies specific limitations on foreign investments in its 
national flag carrier  and the telecommunications company  (Chorus). During the review period, 
New Zealand launched a broad reform to simplify its for eign investment regime and enhance the 
coverage of high -risk transactions.  
9. New Zealand updated and modernized its customs legislation since its last Review. Import and 
export procedures, including customs valuation regulations  and appeal mechanisms , as we ll as 
import/export prohibitions, restrictions and licensing are now regulated through the Customs and 
Excise Act 2018 , which  replaced the Customs and Excise Act 1996. The 2018 Act came into force on 
1 October  2018 with a view of making the customs regime more transparent . It provides for a 
number of new services and better support compliance , and also intends to promote economic 
growth by making it easier for traders to do business . 
10. New Zealand's simple average a pplied MFN tariff rate was 2.2% in 2021 (2.4% in 2014) , 
considerably lower than the simple average bound tariff rate of 10.5% . Differences between bound 
and applied rates may provide the Government with scope to raise applied tariffs, although this was 
not the case during the period under review.  Over 60% of tariff lines are duty free, although higher 
tariffs continue to apply to footwear, textiles, and clothing . 
11. New Zealand's current quantitative restrictions in force are implemented for various purposes, 
such as protection of public morals, complia nce with domestic regulations and international 
conventions, or protection of public health. They include agricultural products, chemicals, and 
endangered species, as well as a range of food products.  
12. The Dumping and Countervailing Duties Act 1988 was amen ded in May  2017 to provide for a 
public interest assessment in the application of anti -dumping and countervailing duties. Otherwise, 
no major  changes were made during the review period to New Zealand 's legislation and institutional 
framework on anti -dumpin g, countervailing , and safeguard measures.  Since its last Review, 
New Zealand  initiated and completed several anti -dumping and countervailing investigations, with 
some anti -dumping duties levied and no countervailing duties applied. New  Zealand did not imp ose 
any safeguard measures or undertake any safeguard investigations during the review period.  
13. Over the last few years, the main export promotion agency, New  Zealand  Trade and 
Enterprise , received additional funding and resource to support the country's t rade recovery.  
New Zealand  continues to provide various forms of incentives to firms  with a strong emphasis on 
innovation and capacity building ; according to the authorities these are not targeted at specific 
sectors.  In its latest notification to the WTO, New Zealand  reported  3 subsidy schemes  in 2021 
(down from 11 in 2011) , which  aim to promote R&D, industry innovation, business capabilities, jobs, 
sustainable economic development, and environmental sustainability .  
14. The Standards and Accreditation Act 2015  entered into force in March  2016 as the principal 
legal instrument for the development and adoption of standards and conformity assessments . It has 
led to institutional reforms affecting the  process for the approval of standards , and the management 
structure of the International Accreditation New Zealand, the country's accreditation body. 
Since  2015, New Zealand  has signed three new recognition agreements or arrangements : one for 
the acceptance of conformity assessment results, and two for  certification. New  Zealand has also 
adopted two new Consumer Information Standards Regulations requiring labelling information for 
water -using equipment (2017), and food (2021). The latter, requiring that labels include the country WT/TPR/S/426 /Rev.1  • New Zealand  
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  of origin, was the obje ct of the only TBT specific trade concern against New  Zealand during th e 
review  period . In 2018, New  Zealand also started to fully implement its standardized packaging 
regime for tobacco.  
15. The authorities have continued to take actions with a view to furth er reinforcing New  Zealand's 
biosecurity protection, including traceability obligations and food recall requirements . At the same 
time, SPS -related boarder procedures were streamlined through a number of reforms, including the 
use of automated electronic s ystems for issuing export certificates for food, plant, and animal 
products . New  Zealand's risk -based SPS regulations apply equally to imported and domestically 
produced food, animal, and plant products. Food products that represent higher risk  are identif ied 
by the authorities on a regular basis, and are subject to more stringent food safety requirements.  
Animal and plant products  cannot be imported into New Zealand , unless an import health standard  
(IHS)  has been developed to specify the biosecurity requi rements that must be met by that product; 
16 IHSs were drafted between 2015 and 202 1. In 2018, specific trade concerns were raised with 
respect to New Zealand 's draft import health standard for vehicles, machinery, and equipment in 
the SPS Committee . 
16. Durin g the review  period, New Zealand 's competition framework, under the Commerce Act, 
was amended several times. The amendments created a new regime relating to  cartels by 
categorizing cartel conduct into three different types : price-fixing, restricting output , and allocating 
markets . The amendments also criminali ze cartels  and accorded t he Commerce Commission the 
power to conduct market studies and the right to accept enforceable undertakings to resolve 
competition concerns . The Commission has the power to clear a proposed  merger if the transaction 
is unlikely to have the effect of  substantially lessen ing competition  in a market  in New Zealand . 
Some sectors  of the economy  (such as the fuel market and the retail grocery sector)  still suffer from 
limited  compe tition. 
17. In 2019, updated Government Procurement Rules came into force, introducing the concept of 
"broader outcomes" to be considered by procuring entities in their procurement strategies, individual 
procurement procedures, and at the contract management s tage; one such outcome is the 
requirement that at least 5% of the total number of mandated government agencies ' procurement 
contracts (including contracts above the GPA thresholds) be  awarded to Māori businesses.  
18. Since its last Review, New  Zealand acceded  to four new WIPO treaties as well as the 
Paris Act (1971) of the Berne Convention, undertook new IP commitments in its FTAs, and 
amended/adopted several IP laws. The Government has continued to work with Māori  to address 
the protection, use and developmen t of Māori  knowledge system. A sui generis system for the 
protection of geographical indications was implemented in 2017, while a new regime for the 
protection of plant variety rights is expected to enter into force in 2022. Patenting activity has 
declined  in New  Zealand, following the implementation of higher patentability requirements, while 
trademark applications and grants has steadily increased. Data protection for confidential 
information supporting an application for registration of an agricultural o r veterinary compound was 
expanded. The Copyright Act 1994 was recently amended to strengthen the related rights of 
performers and to expand the availability of copyrighted works to those with print disabilities. 
Creative and broadcasting industries have r ecently called for new measures to combat digital piracy. 
Interceptions of trademark and copyright -related goods by customs authorities declined sharply in 
the last few years.  
19. During the review period, agricultural output increased, mainly due to meat and dairy 
production. The sector continued to contribute significantly to New  Zealand's total merchandise 
exports (over half of goods exported), while it accounted for 6.2% of GDP in 2019/2020 and 5.84% 
of employment in 2019. Nonetheless, growth in agricultura l total factor productivity lags behind the 
OECD's average, and n early half of New Zealand 's greenhouse gas emissions come from agriculture ; 
Government efforts are underway to address these issues.  The simple average applied MFN tariff on 
agricultural products  (WTO definition) was 1.8% in 2021,  and government support to the sector is 
among the lowest within the OECD, with the main support measures focused on pest and disease 
control , knowledge and in novation system s, environmental programmes, and infrastructural 
services. Export regulations establish a prior approval system for export of Kiwifruit, and a licensing 
system for export of horticultural products. Fishing activities have a great socio -econo mic and 
strategic importance, with some 13,500  people employed in the sector and a contribut ion of  
NZD 4.2 billion per year in economic activity.  With a view to ensuring sustainability of its fish stock, WT/TPR/S/426 /Rev.1  • New Zealand  
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  New Zealand implements a quota management system. F oreign-flagged charter vessels fishing in 
New Zealand  waters (within the 200 -mile limit) are required to reflag as New Zealand ship.  
20. While h ydrocarbons continue to be New Zealand 's main source of primary energy  and an 
important source of greenhouse gas emis sions, energy efficiency is a high priority for the authorities. 
Several strategic plans, and an emission trading system, were put in place during the review period 
to achieve environmental targets at both domestic and international levels, including a goa l to 
transition to net zero carbon emissions by  2050.  
21. The manufacturing sector accounted for 10.7% of GDP  and 8.6% of employment  in 2019/20, 
and 17.8% of merchandise exports in 2021. The simple average applied MFN tariff in manufacturing 
was 2.3% in 2021 compared with 2.5% in 2015. The Government's main efforts seek to promote 
innovation, while limiting the sector's environmental footprint.  
22. The services sector accounts for 71.6% of GDP. Financial services are dominated by the 
banking industry, which held some 86% of overall financial system assets  in 2021. The four large 
foreign -owned banks hold 85% of bank lending . Efforts are underway to further develop capital 
markets. Several regulations have recently been issued to further reinforce the prudential reg ime 
for financial institutions.  
23. The telecommunications market has continued to grow over the last few years, in line with 
the rising trend in mobile services, while fixed -line connections were declining. The pandemic led to 
an increase  in fixed broadband data usage ; however, travel  restrictions led to a collapse in total 
mobile roaming . The Government, in collaboration with the private sector, has mobilized large 
resources to further improve telecommunications infrastructure, including broadband connectivity. 
In recent years, digital inclusion and cybersecurity have become strategic goals for the authorities. 
Several public programmes have been launched to further improve mobile coverage and access to 
fast broadband in homes and business es. As connectivity continue s to support New Zealand 's 
economy , measures have been taken to protect  users against cyber threats . 
24. New Zealand has signed air services agreements  with 71  partners , and continue s to advocate 
for open skies agreements, based on its i nternational air transport policy. In the wake of the 
pandemic, the Government implemented a number of financial package s to: (i) support the 
continuation of essential trade flows, including the import of medical supplies  and the maintenance 
of air connectivity for passengers and future tourism capacity ; and (ii) ensure the sustainability of 
the aviation sector.   
25. No significant regulatory changes took place in maritime transport during the review period.  
Maritime transport remains key to  New Zealand  freight movement. Shipping services are provided 
by both New Zealand  based ship operators and international shipping lines , for whom cabotage is 
restricted . Foreign ers are only allowed to register a ship under  the country's flag in co -ownership 
with majority owner New  Zealand  nationals.  
26. Historically, tourism is New  Zealand's largest export earner, and it contributes significantly 
to GDP, employment, and tax revenue. However, in 2020 and 2021, the tourism indust ry suffered 
from the impact of the pandemic. In response, the Government undertook several support measures 
for the sector. F unding was provided through a range of initiatives including the protect ion of core 
tourism assets , as well as the development of t he domestic tourism market, and digital capabilit ies. WT/TPR/S/426 /Rev.1  • New Zealand  
- 11 - 
  1  ECONOMIC ENVIRONMENT  
1.1  Main Features of the Economy  
1.1.  New Zealand remains one of the most open economies in the world, as it highly encourages 
private entrepreneurship and competition. During the period under review, New  Zealand maintained 
its efforts in creating a proactive regulatory framework, with strong emphasis on innovation and 
capacity -building. According to  the latest Institute for Management Development (IMD) World 
Competitiveness report, New  Zealand ranked 20th among 64  economies, with an effective legal 
system, policy stability and predictability, and a business -friendly environment as some of its main 
strengths. On the other hand, the report also indicates that sustaining the ease of doing business 
amid tighter regulations and overall low levels of workforce productivity are some of New  Zealand's 
main challenges.1 
1.2.  Despite New  Zealand's conducive economic policy context, gross domestic product (GDP) 
growth potential remains constrained by long -standing structural issues, notably weak productivity 
growth.2 According to the  IMF, better financed R&D, by both the Government and the private sector, 
could further enhance innovation and productivity, while larger foreign direct investment (FDI) 
inflows could boost global collaboration  and technology sharing. Recent reforms of the Overseas 
Investment Act, with the aim of streamlining approval procedures, c ould help in this regard 
(Section  2.4). The IMF also suggests reducing  infrastructure gaps, particularly in energy, transport, 
and telecoms; revisiting product market regulations to lower costs and spurring competition without 
sacrificing safety or other i nterests; and reducing high unemployment among young people/some 
ethnic communities3, and addressing income inequality through targeted labour market 
interventions.4 
1.3.  The structure of New  Zealand's economy has not changed significantly over the past few y ears. 
As shown in Chart  1.1, the services sector continues to be the main contributor to GDP, with an 
estimated 71.6% share in FY2019/20 (71.5% in 2014/15), followed by manufacturing with 10.7% 
(12.1% in 2014/15); construction with 7.6% (6.2% in 2014/15); agriculture, forestry and fishing 
with 6.2% (5.2% in 2014/15); electricity, gas and water with 3.0% (3.4% in 2014/15); and mining 
and quarrying with 1.0% (1.6% in 2014/15).  
1.4.  International trade plays an important role in New  Zealand's economy, albeit decrea singly: 
merchandise trade (exports and imports), as percentage of GDP, went down from 40.7% in 2014/15 
to 35.3% in 2020/21.5 This fall is partly due to the negative impact the COVID -19 pandemic had on 
both exports and imports of goods and services. T he sm all size of New Zealand's economy, the 
remote access to markets and suppliers, and limited participation in global value chains (GVCs) other 
than food and agriculture also reduce the ability of firms to exploit economies of scale and to export. 
In 2020, Ne w Zealand ranked 37th among world merchandise exporters and 40th among importers 
(considering the countries of the European  Union together and excluding intra -EU trade). Services 
exports, mainly travel services, are also a significant source of foreign exchange earnings. In services 
trade, New  Zealand ranked 30th among exporters and 34th among importers.6 
 
1 IMD, Competitiveness Ranking 2021, Country Overview: New  Zealand . Viewed at: 
https://worldcompetitiveness.imd.org/countryprofile/NZ/wcy . 
2 Productivity growth is h ow much output can be generated with a given level of labour and capital.  
IMF estima tes show that  New Zealand's performance regarding productivity growth has persistently lagged 
other advanced economies.  
3 Youth unemployment rate was 11.3% in 2019 (similar to the OECD average but higher than the 9.4% 
average of major advanced economies and the 4.1% ov erall unemployment rate). Female unemployment was 
higher than male unemployment in most age groups, while historically there has been high unemployment 
rates among Māori and Pacific people. IMF (2021), New Zealand: Selected Issues , IMF Country Report 
No. 21/89, pp.  3-4. 
4 IMF (2021), The Land of the Long White Cloud: Turning New  Zealand's Recovery into Sustained 
Growth , pp. 6-7. Viewed at: https://www.imf.org/en/News/Articles/2021/05/25/na052521 -the-land-of-the-
long-white -cloud -turning -new-zealands -recovery -into-sustained -growth . 
5 Data provided by the authorities.  
6 WTO Statistics database, Trade Profiles: New  Zealand . Viewed at: 
https://www.wto.org/english/res_e/statis_e/daily_update_e/trade_profiles/NZ_e.pdf . WT/TPR/S/426 /Rev.1  • New Zealand  
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  Chart 1.1 GDP by eco nomic activity (at basic current prices), 2019/20  
 
Note:  Fiscal year: 1  April to 31  March.  
Source:  WTO Secretariat calculations, based on data provided by the authorities.  
1.5.  New Zealand's economy has comparative advantage in resource -based activities. Indee d, 
primary sector products (e.g. live animals and animal products, dairy, and meat products) continue 
to dominate New  Zealand's merchandise exports, while imports concentrate in manufacturing 
(transport equipment and machinery) and raw materials. New  Zeala nd's trade is also increasingly 
concentrated geographically, with Asian economies, notably China and Australia, accounting for 
almost 70% and 60% of total merchandise exports and imports, respectively (Section  1.3.1).  
1.2  Recent Economic Developments  
1.6.  At the ti me of New  Zealand's previous Review, real GDP had expanded at an average annual 
rate of 2.1% between 2008/09 and 2013/14, driven primarily by private consumption and gross 
fixed capital formation associated with reconstruction spending after the 2010/11 Ca nterbury 
earthquakes. New  Zealand also benefited from high export commodity prices and rising terms of 
trade during most of the review period. Nevertheless, New  Zealand also faced some important 
challenges, including high foreign debt, weak external demand , and low labour productivity.7 
1.7.  Since then, according to the IMF, real GDP growth averaged 3.4% during 2015 -19 (up 
from 2.3% over 2003 -12).8 New Zealand's expansion lost momentum in 2017 -18 as some key 
drivers of the strong growth through 2016 (such as reconstruction spending, high net migration, a 
housing boom, and strong terms of trade) weakened. Economic growth picked up in early 2019 after 
slowing in the second half of 2018 mostly reflecting a rebound in private business investment growth, 
and streng thening of residential investment, notwithstanding cooling housing markets.9 
1.8.  In 2020, the IMF estimates that New  Zealand's real GDP contracted by 2.1% mainly due to 
the COVID -19 pandemic. However, according to the IMF, New Zealand's economy has weathered 
the pandemic relatively well.10 Strict public health measures including lockdowns and border controls 
led to the sharpest fall in GDP on record in the second quarter of 2020. Nonetheless, activity 
 
7 WTO doc ument WT/TPR/S/316/Rev.1, 12 October 2015.  
8 The figures related to GDP growth, inflation, and current account as share of GDP are IMF estimates 
on the basis of calendar year, not fiscal year. IMF (2021), World Economic Outlook , October.  
9 IMF (201 9), New Zealand : Staff Report for the 2020 Article  IV Consultation , IMF Country Report 
No. 19/303, p. 4. 
10 IMF (20 21), New Zealand : Staff Report for the 2020 Article  IV Consultation , IMF Country Report 
No. 21/88, p.  2. 
Agriculture, forestry and 
fishing 6.2%Mining and 
quarrying
1.0%Manufacturing
10.7%Electricity, gas 
and water 3.0%Construction
7.6%Real estate activities
16.0%
Wholesale and retail 
trade 9.7%
Professional, scientific, and 
technical activities 9.1%
Human health and 
social work activities 6.6%
Financial and insurance 
activities 6.0%
Transport and storage 4.7%
Education 4.7%
Other 14.9%Services
71.6%Chart 1.[NZL] Gross domestic product by economic activity (at basic current prices), 2019 -20
Note:  Fiscal year: 1 April to 31 March.
Source:   Data received by the authorities.WT/TPR/S/426 /Rev.1  • New Zealand  
- 13 - 
  rebounded strongly in the second half of 2020 supported by a substantial fiscal policy response 
focused on cushioning the blow for households and businesses.11 These measures, combined with 
businesses' own adaptability to COVID -19 restrictions, contributed to the economy, and the labour 
market in particular, provi ng more resilient than expected. The relative strength of New  Zealand's 
main goods exports, notably in key primary industries, has also supported the economy 
(Section  1.3.1).  
1.9.  With one in four New  Zealanders' jobs dependent on exports, trade is seen by the authorities 
as the critical enabler of economic recovery for New  Zealand post -COVID -19. Trade policy measures 
adopted in response to the pandemic initially focused on maintaining its critical trade and supply 
links to  ensure the continued access to essenti al goods such as medicines and testing kits. 
New Zealand unilaterally suspended tariffs on medical and pandemic -related goods, concluded a 
negotiation on essential COVID -19 goods with Singapore and other economies to ensuring supply 
chain connectivity12, and set out its Trade Recovery Strategy to provide a framework to help 
businesses get through the pandemic disruption and to recalibrate trade policy to navigate a 
turbulent environment ( Section  2.2).13 
1.10.   New Zealand's economic recovery, however, remains unev en across sectors. While 
housing -related sectors (e.g. construction and durable goods retail) have fared well, border 
restrictions continue to weigh on sectors most exposed to tourism and those reliant on delivering 
services offshore. The economic impacts of COVID -19 have also been felt disproportionately 
across  the population, with more vulnerable labour market cohorts, such as youth, women, and 
Māori  and Pacific peoples, most affected initially. Nonetheless, according to the authorities, there 
are signs t hat some of these impacts are beginning to unwind.14 
1.11.   Pandemic -related challenges also continue to be felt. B usinesses are increasingly reporting 
that border restrictions are making it difficult to fill positions. These difficulties are particularly acute 
for skilled labour in the construction and IT sectors, as well as seasonal workers. In addition, 
disruption to GVC, congestion at key ports, and significant increases in shipping costs are all 
challenges for New  Zealand businesses. The cost of shipping good s to and from New  Zealand has 
increased significantly, particularly for container -based freight, which includes many consumer 
goods. Supply chain bottlenecks are also causing material delays in getting goods into and out of 
New Zealand. These disruptions t o the usual flow of both goods and workers are likely to result in 
greater capacity constraints  and inflationary pressures in the economy.15 
1.12.   According to the IMF, New  Zealand's real GDP is projected to grow by 5.1% in 2021, driven 
by strong domestic demand.16 Nonetheless, lower labour supply due to muted migration flows, weak 
capital accumulation, and slowing productivity growth are expected to adversely affect potential 
output. Employment and labour incomes have held up better than expected but, as already 
indicated, the impact has been uneven.17 The unemployment rate decreased from 5.4% in 2014/15 
to 4.7% in 2020/21. Between 2014/15 and 2020/21, GDP per capita remained relative stable at 
around USD  42,500 (Table  1.1), while New  Zealand's ran king in the UN Human Development Index 
went from 7th to 14th (out of 189 countries) during the review period.18 
 
11 There were five COVID -19 Wage Subsidy Schemes between March 2020 and December 2021 to 
respond to COVID -19 Alert Level 3 or 4 escalations during that period – the most restrictive public health 
measures. Over NZD  18 billion (5.5% of GDP in FY2020/21) was paid out across all schemes . Information 
provided by the authorities.  
12 In 2021, New  Zealand participated in a Joint Ministerial statement in which 12 economies affirmed 
their commitment to ensuring supply chain connectivity during the pandemic. As Chair of the Asia -Pacific 
Economic Coop eration ( APEC), New  Zealand also promoted similar initiatives involving the 21 APEC member 
economies.  
13 Ministry of Foreign Affairs & Trade ( MFAT ), Trade Recovery Strategy . Viewed at: 
https://www.mfat.govt.nz/en/trade/trade -recovery -strategy/trade -recovery -strategy -overview . 
14 For example, the Māori underutilization rate has returned to near its pre -COVID -19 level, although 
Pasifika unemployment and underutilization remain elevated.  
15 Information provided by the authorities.  
16 IMF (2021), World Economic Outlook , October.  
17 IMF Country Report No.  21/88, p.  7. 
18 UNDP, Human Development Index 2015 . Viewed at: http://hdr.undp.org/en/content/human -
development -index -hdi. WT/TPR/S/426 /Rev.1  • New Zealand  
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  Table 1.1 Selected macroeconomic indicators, 2014/15 -2020/21  
(Year -end: March, unless otherwise i ndicated)  
  2014/15  2015/16  2016/17  2017/18  2018/19  2019/20  2020/21  
Real GDP, expenditure based, 
2009-10 prices (NZD billion)  218.2  227.8  236.3  246.6  256.5  263.1  262.3  
Real GDP, expenditure based, 
2009/10 prices (USD billion)  176.7  154.5  167.6  176.2  174.8  170.4  176.1  
Current GDP, expenditure 
based (NZD billion)  242.7  255.3  271.3  290.8  306.3  324.0  327.2  
Current GDP, expenditure 
based (USD billion)  196.5  173.1  192.4  207.9  208.7  209.8  219.4  
GDP per capita at current 
market price (NZD)  53,422  55,048  57,224  60,196  62,331  64,310  63,798  
GDP per capita at current 
market price (USD)  43,259  37,325  40,585  43,026  42,475  41,653  42,817  
National accounts 
(% change, unless 
otherwise indicated)         
Real GDP, expenditure based  3.6 4.4 3.7 4.4 4.0 2.6 -0.3 
Consumption  3.2 3.7 5.3 4.6 4.3 3.2 2.1 
Private consumption  3.3 4.2 6.4 4.8 4.6 2.5 0.4 
Government 
consumption  2.9 2.2 1.9 3.7 3.4 5.4 7.5 
Gross fixed capital formation  8.1 3.6 2.2 6.9 5.2 2.6 -4.8 
Exports of goods and 
services  4.8 6.5 2.0 3.8 3.5 0.3 -17.8 
Imports of goods and 
services  7.7 2.6 5.6 7.8 4.3 1.1 -16.1 
XGS/GDP (%) (at current 
market price)  28.0 27.9 26.6 27.6 27.9 27.3 21.9 
MGS/GDP (%) (at 
current market price)  27.2 27.0 25.9 26.6 27.9 27.0 22.3 
Unemployment rate (%)  5.4 5.4 5.1 4.6 4.3 4.1 4.7 
Prices and interest rates   
Inflation (CPI, % change)  0.9 0.3 1.1 1.6 1.7 1.9 1.5 
90-day bank bill rate  
(%, period average)  3.60 2.98 2.18 1.94 1.90 1.31 0.29 
Lending rate  
(%, period average)  5.9 5.6 4.9 4.6 4.6 4.2 3.3 
Deposit rate  
(%, period average)  4.09 3.52 3.23 3.30 3.26 2.83 1.24 
Exchange rate         
USD/NZD (period average)  0.810  0.678  0.709  0.715  0.681  0.648  0.671  
Nominal effective exchange 
rate (% change)  2.3 -7.9 5.5 -1.9 -2.9 -2.3 1.2 
Real effective exchange rate 
(% change)  1.5 -8.6 5.2 -2.0 -3.0 -2.3 2.0 
Fiscal balance (year ended 
30 June, % of GDP)         
Total Crown revenue  38.2 37.7 37.5  37.2  38.4  36.6  38.1  
Tax revenue  27.1 27.2 27.4  27.1  27.9  26.8  28.9  
Total Crown expenditure  37.9 36.8 35.9  35.1  35.9  43.8  39.4  
Operating balance before gains 
and losses  0.2 0.7 1.5  1.9  2.4  -7.3 -1.3 
Gross debta 35.1 33.6 31.6  29.7  27.2  32.2  30.2  
Net debtb  24.7 23.9 21.6  19.4  18.6  26.3  30.1  
Saving and investment  
(% of GDP)         
Gross national savings  19.6 20.7 20.6 20.8 20.3 21.3 19.6 
Gross domestic investment  23.0 23.2 23.1 23.7 24.0 23.7 22.3 
External sector (% of GDP, 
unless otherwise indicated)         
Current account balance  -3.4 -2.5 -2.5 -2.9 -3.7 -2.3 -2.5 
Goods balance  -0.2 -1.0 -1.1 -1.0 -1.5 -0.9 0.5 
Exports  20.3 19.1 18 18.9 19.2 18.8 17.9 
Imports  20.5 20.1 19.1 19.8 20.7 19.7 17.4 
Services balance  1.0 1.9 1.8 1.9 1.4 1.2 -0.9 
Credit  7.7 8.8 8.6 8.7 8.7 8.5 4.0 
Debit  6.7 6.8 6.7 6.8 7.3 7.3 4.9 
Capital account  0.0 0.1 0.8 0.0 0.0 0.0 0.0 
Financial account  0.5 1.4 2.0 1.1 0.8 -0.2 4.1 
Direct investment  1.1 0.0 1.1 1.6 0.5 2.3 1.9 
Balance of payments  -0.8 1.3 -1.1 -0.9 0.9 -2.6 5.5 
Terms of trade 
(June  2002=1,000, end 
period)  1,335.0  1,331.6  1,417.8  1,442.5  1,413.8  1,490.6  1,477.4  
Merchandise exports 
(% change)c -2.4 -0.7 0.1 12.2 7.2 3.6 -4.0 WT/TPR/S/426 /Rev.1  • New Zealand  
- 15 - 
    2014/15  2015/16  2016/17  2017/18  2018/19  2019/20  2020/21  
Merchandise imports 
(% change)c 4.1 3.4 0.9 11.2 9.7 1 -11.1 
Service exports (% change)c 12.2 19.8 4.1 8.4 5.1 3.9 -52.7 
Service imports (% change)c 4.5 7.2 4.7 7.9 12.6 6.3 -32.1 
Net foreign liabilities 
(%, end-March)  -62.0 -60.8 -54.6 -51.6 -53.9 -55.5 -50.5 
Official reserve assets 
(NZD  billion, end -March)  24.7 24.3 26.6 30.1 27.7 39.2 18.5 
% of GDP  10.2 9.5 9.8 10.3 9.0 12.1 5.7 
Total external debt 
(NZD  billion, end -March)  248.9  258.4  265.9  275.5  284.3  306.5  289.3  
% of GDP  102.6  101.2  98.0 94.6 92.7 95.1 88.9 
a Gross debt is defined as gross sovereign -issued debt excluding Reserve Bank of New  Zealand 
(RBNZ) settlement cash and RBNZ bills.  
b Net debt is defined as core Crown net debt excluding the New  Zealand Super Fund and advances.  
c Growth rates based on trade figures taken from the Balance of Payment in NZD.  
Source:  Statistics New  Zealand. Viewed at: https://www.stats.govt.nz/ ; RBNZ. Viewed at: 
https://www.rbnz.govt.nz/ ; The Treasury. Viewed at: https://www.treasury.govt.nz/ ; and IMF, 
International Financial Statistics. Viewed at: https://www.imf.org/en/Data . 
1.2.1   Monetary and exchange rate policies  
1.13.   The Reserve Bank of New  Zealand (RBNZ) is responsible for conducting monetary policy . The 
Reserve Bank of New  Zealand Act 1989 states that the economic objectives of monetary policy are 
to achieve and maintain stability in the general level of prices over the medium term and suppo rt 
maximum sustainable employment. In this regard, monetary policy helps to promote the prosperity 
and well -being of New  Zealanders and contribute to a sustainable and productive economy. 
Amendments to New  Zealand's monetary policy framework came into effe ct on 1  April 2019.19 The 
remit, charter, and code of conduct are key components of the new framework.20 The remit was 
revised in February  2021 by the Minister of Finance to state that in pursuit of its inflation and 
employment objectives, the Monetary Policy Committee (MPC) is to assess the effect of its decisions 
on the Government's policy to support more sustainable housing prices, including by dampening 
investor demand for existing housing stock, which would improve affordability for first -home 
buyers.21 
1.14.   Prior to 2019, the Reserve Bank Act 1989 required that the then single target of price stability 
be defined in a specific and public contract, negotiated between the Government and the RBNZ. This 
was called the  Policy Targets Agreement (PTA).  The PTA changed over time, with the final agreement 
in March  2018, defining price stability as annual increases in the Consumer Price Index (CPI) of 
between 1% and 3% on average over the medium term, with a focus on keeping future average 
inflation near t he 2% target midpoint. The final PTA also included, for the first time, a 
second  objective of supporting maximum sustainable employment.22 
1.15.   The MPC sets monetary policy to achieve its inflation and employment objectives, as defined 
in its remit. The MPC rev iews policy at least seven times a year, and typically adjusts policy by 
setting the Official Cash Rate (OCR).23 During the review period, monetary policy maintained an 
accommodative stance in order to support economic recovery and maintain price stability . The MPC 
gradually reduced the OCR rate from 3.5% in 2015 to 1.0% until February  2020.24 
 
19 The Reserve Bank of New  Zealand (Monetary Policy) Amendment Act 2018 is available at: 
https://www.legislation.govt.nz/act/public/2018/0059/latest/LMS65426.html . 
20 The remit provides the Monetary Policy Committee (MPC) with its operational objectives, con sistent 
with the economic objectives in Section  8 of the Reserve Bank of New  Zealand Act 1989. A replacement remit 
came into force on 1  March  2021.  RBNZ, Monetary Policy Framework . Viewed at: 
https://www.rbnz.govt.nz/monetary -policy/about -monetary -policy/monetary -policy -framework . 
21 New Zealand Government  (2021), " Reserve Bank to Take Account of Housing in Decision Making ", 
25 February . Viewed at: https://www.beehive.govt.nz/release/reserve -bank-take-account -housing -decision -
making . 
22 RBNZ, Monetary Policy Framework . Viewed at: https://www.rbnz.govt.nz/monetary -policy/about -
monetary -policy/monetary -policy -framework . 
23 The RBNZ uses its six -weekly OCR decision to dial up or down the cos t of money, which affects 
spending, saving, and investing decisions.  
24 RBNZ, History of Policy Targets Agreements . Viewed at: https://www.rbnz.govt.nz/monetary -
policy/history -of-policy -targets -agreements . WT/TPR/S/426 /Rev.1  • New Zealand  
- 16 - 
  1.16.   Due to the COVID -19 pandemic, the OCR rate was cut by 0.75  points to 0.25% in March  2020, 
responding to the weaker growth and inflation outlook. To keep interest rate s faced by households 
and businesses low, the MPC also utilized additional tools during this period. These included 
large-scale purchases of government and Local Government Funding Agency bonds, and the 
Funding -for-Lending programme. On 6  October  2021, the MPC increased the OCR for the first time 
in seven  years to 0.50% so as to keep low inflation and support maximum sustainable employment. 
On 24 November 2021, the MPC further raised the OCR to 0.75%.25 
1.17.   According to the IMF, annual CPI inflation averaged 1.3% during 2015 -20, compared 
with 2.6% over 2003 -12. The average annual rate of inflation in a given year ranged from 0.3% 
in 2015 to 1.9% in 2017; it was 1.7% in 2020. For  2021, the IMF estimates an average inflation 
rate of 3.0%, driven by high er commodity prices and temporary increases in shipping costs .26 
1.18.   The MPC assesses the inflation and employment outlook on an ongoing basis, with a current 
view to continue to reduce the level of monetary stimulus over time so as to best meet its policy 
remit.27 In the November  2021 Monetary Policy Statement , the RBNZ's economic outlook suggests 
that stimulus will need to be removed over the next 18  months in order for inflation to return to 
the 2% midpoint of the MPC's target over the next 3 years . According to the IMF, inflation is expected 
to durably reach the 2% midpoint of the RBNZ's target only from 2024. The IMF suggests that 
monetary policy should remain accommodative for an extended period.28 
1.19.   The evolution of the NZ  dollar exchange rate sin ce January  2015 is shown in Chart  1.2.29 It 
depreciated sharply in 2015 mainly due to lower export prices and heightened uncertainty about the 
global economic outlook; it appreciated during 2016 and the beginning of 2017, putting pressure on 
export earning s. The real effective exchange rate depreciated from 2017 until mid -2020, mirroring 
the declining interest differential, which turned negative in 2018, and also likely reflected the slowing 
economic activity in 2019. Since the third quarter of 2020, both t he real and nominal exchange rate 
appreciated somewhat, partially reversing some of the depreciation since 2017 with the fast 
economic recovery and resilient commodity prices. According to the IMF, New  Zealand's external 
position, including its nominal and  real exchange rates, is broadly in line with fundamentals and 
desired policy settings.30 
 
25 RBNZ, History of Policy Targets Agreements . Viewed at: https://www.rbnz.govt.nz/monetary -
policy/history -of-policy -targets -agreements . 
26 IMF (2021), World Economic Outlook , October.  
27 RBNZ  (2021) , Monetary Policy Stateme nt, August. Viewed at: https://www.rbnz.govt.nz/ -
/media/ReserveBank/Files/Publica tions/Monetary%20policy%20statements/2021/mpsaug21.pdf?revision=362
7c6fa -6462-453a-af85-06e62f47705c . 
28 IMF Country Report No.  21/88, p.  12. 
29 The NZ dollar has floated independently since March 1985 and the de facto  exchange rate 
arrangement is free float ing. 
30 IMF Country Report No.  21/88, p.  38. WT/TPR/S/426 /Rev.1  • New Zealand  
- 17 - 
  Chart 1.2 Exchange rates, January 2015 -December 2021  
 
Source:  IMF, International Financial Statistics.  
1.2.2   Fiscal policy  
1.20.   According to the IMF, New  Zealand's fiscal and monetary mix has been appropriately 
accommodative in recent years.31 The Government's operating balance (before gains and losses), 
as share of GDP, registered surpluses that went from 0.2% in 2014/15 to 2.4% in  2018/19, mainly 
on account of spending restraint. Indeed, total Crown expenditure, as a share of GDP, declined 
from 37.9% of GDP to 35.9%, while total Crown revenue increased slightly from 38.2% to  38.4% 
over that period.32 Nonetheless, fiscal deficits of  7.3% of GDP and 1.3% of GDP were registered 
in 2019/20 and 2020/21, respectively (Table  1.1), mainly on account of the sizeable economic policy 
support in response to the pandemic.  
1.21.   As a result of the evolution of the fiscal deficit, net public debt rose t o 30.1% of GDP 
in 2020/21, from 24.7% in 2014/15. Nonetheless, according to the IMF, New  Zealand's public debt 
has remained low compared to that of advanced economy peers, with net government debt projected 
to peak at 40.1% of GDP in 2023/24. The IMF suppo rts the suspension of the authorities' debt target, 
which provides additional flexibility to respond to the economic impact pf the pandemic. Once the 
pandemic -related uncertainties subside, the authorities intend to stabilize net debt as percentage 
of GDP.33 
1.22.   The size and scope of economic policy support in response to the pandemic have been 
unprecedented. Making use of the substantial fiscal space, the authorities put in place large -scale 
fiscal measures (expenditure and revenue forgone) amounting to NZD  69.1 billion, or 21.1% of GDP 
through FY2024/25, including wage subsidies, infrastructure investment, and tax measures to 
support businesses and investment. In addition, other measures (e.g.  Business Finance Guarantee 
Scheme, Small Business Cashflow Scheme, Convertible Debt Agreement with Air New  Zealand, and 
R&D Loan Scheme) are being implemented. The large -scale fiscal support measures have helped 
avert a much larger decline in economic activity and employment.34 
1.23.   The authorities emphasize that maintaining adequate flexibility is particularly important to 
address downside risks as shown by the emergence of the Delta and Omicron variants that will most 
 
31 IMF Country Report No.  21/88, p.  12. 
32 Financial statements are prepared for the Government as a whole in accordance with the 
Public  Sector Finance Act  1989.  
33 IMF Country Report No.  21/88, p.  12. 
34 IMF Country Report No.  21/88, p.  9. 
0.500.550.600.650.700.750.80
9095100105110115120
01/01/2015
04/01/2015
07/01/2015
10/01/2015
01/01/2016
04/01/2016
07/01/2016
10/01/2016
01/01/2017
04/01/2017
07/01/2017
10/01/2017
01/01/2018
04/01/2018
07/01/2018
10/01/2018
01/01/2019
04/01/2019
07/01/2019
10/01/2019
01/01/2020
04/01/2020
07/01/2020
10/01/2020
01/01/2021
04/01/2021
07/01/2021
10/01/2021Nominal effective exchange rate (left-hand scale)
Real effective exchange rate (left-hand scale)
USD/NZD (period average, right-hand scale)Chart 1.[NZL]   Exchange rates, January 2015 -December 2021
Source:   IMF, International Financial Statistics.Index 2010=100USD/NZDWT/TPR/S/426 /Rev.1  • New Zealand  
- 18 - 
  likely result in a decline in the structural fiscal balance in 20 21/22. The unallocated portion of the 
COVID -19 Response and Recovery Fund (around NZD  4.3 billion) could play a central role in 
mitigating economic effects of any further pandemic -related shocks. At the same time, 
New Zealand's rapidly ageing population po ses a challenge to fiscal sustainability although less so 
than in other developed countries.35 
1.2.3   Balance of payments  
1.24.   Traditionally, New  Zealand has run a current account deficit, averaging close to 4.0% of GDP 
over the past few decades. These deficits reflec t a long -standing structural savings -investment 
imbalance financed by overseas borrowing. During the review period, the current account deficit was 
mainly driven by a large trade deficit, which could not be offset by a generally positive financial 
account balance (Table  1.2). 
Table 1.2 Balance of payments, 2014/15 -2020/21  
(NZD million, year -end: March)   
2014/15  2015/16  2016/17  2017/18  2018/19  2019/20  2020/21  
Current account  -8,168  -6,305  -6,841  -8,537  -11,445  -7,605  -8,176  
Goods and services 
balance  1,944  2,431  2,089  2,752  -138 968 -1,270  
Trade balance  -453 -2,500  -2,929  -2,776  -4,471  -3,006  1,708  
Exports  49,212  48,877  48,930  54,895  58,822  60,916  58,505  
Imports  49,665  51,376  51,859  57,672  63,293  63,923  56,797  
Services balance  2,397  4,931  5,018  5,528  4,333  3,974  -2,978  
Credit  18,694  22,400  23,310  25,261  26,556  27,588  13,053  
Debit 16,298  17,469  18,292  19,733  22,222  23,613  16,031  
Primary income  -9,774  -8,471  -8,738  -10,927  -11,057  -8,009  -5,615  
Credit  7,209  8,109  8,274  8,425  9,232  8,715  9,159  
Investment income  7,209  8,109  8,274  8,425  9,232  8,715  9,159  
Debit 16,983  16,580  17,012  19,352  20,289  16,725  14,774  
Investment income  16,788  16,347  16,752  19,054  19,946  16,323  14,377  
Compensation of 
employees  195 233 260 298 343 402 397 
Current transfers  -338 -266 -193 -362 -251 -564 -1,290  
Credit  1,971  2,166  2,318  2,334  2,758  2,653  1,665  
General government  717 965 1,004  907 1,012  989 873 
Other sectors  1,254  1,200  1,314  1,428  1,746  1,664  792 
Debit 2,309  2,432  2,510  2,696  3,009  3,218  2,955  
General government  639 688 647 684 766 867 857 
Other sectors  1,670  1,744  1,864  2,012  2,242  2,351  2,098  
Capital account  37 346 2,095  122 -39 -58 -29 
Financial account  1,259  3,677  5,432  3,137  2,569  -776 13,396  
New Zealand investment 
abroad  9,959  -4,452  -103 -170 -2,192  3,335  -19,341  
Direct investment  1,411  995 -1,151  -1,804  737 -812 1,134  
Portfolio investment  11,410  4,829  10,081  4,705  5,384  -5,968  30,139  
Financial derivatives  -3,889  -6,724  -5,318  -4,756  -4,664  -6,229  -17,142  
Other investment  -910 -336 -6,670  -1,033  -742 8,003  -15,348  
Reserve assets  1,936  -3,216  2,955  2,719  -2,907  8,340  -18,124  
Foreign investment in 
New Zealand  11,218  -776 5,329  2,967  377 2,559  -5,945  
Direct investment  3,984  1,009  1,826  2,988  2,201  6,590  7,365  
Portfolio investment  16,070  9,166  15,693  5,170  5,969  5,373  144 
Financial derivatives  -4,799  -9,339  -4,356  -5,307  -6,590  -8,956  -5,506  
Other investment  -4,038  -1,612  -7,834  116 -1,203  -448 -7,949  
Net errors and omission  6,873  2,283  -686 5,277  8,915  8,440  -5,191  
Memorandum:         
Current account as % of 
GDP -3.4 -2.5 -2.5 -2.9 -3.7 -2.3 -2.5 
Balance of payment as 
% of GDP  -0.8 1.3 -1.1 -0.9 0.9 -2.6 5.5 
Source:  Statistics New  Zealand, Balance of Payments . Viewed at: https://www.stats.govt.nz/topics/balance -
of-payments . 
1.25.   The IMF estimates that New  Zealand's current account deficit, as a share of GDP, ranged 
from 2.1% in 2016 to 4.0% in 2018. In 2020, it narrowed significantly to 0.8% of GDP driven by 
 
35 IMF Country Report No.  21/88, p.  12. WT/TPR/S/426 /Rev.1  • New Zealand  
- 19 - 
  stronger contraction in import than export volumes. Strong terms of trade  due to higher food export 
prices, including for dairy products, also helped narrow down the current account deficit. According 
to the IMF, however, the deficit is expected to widen again in 2021 to 3.3% of GDP as the economy 
recovers significantly.36 With relatively high exposure to international tourism, services exports will 
lag until borders open.  
1.26.   New Zealand's net foreign liabilities as a percentage of GDP were reduced over the review 
period from a high of 62.0% in 2014/15 to 50.5% in 2020/21, largely because of lower interest 
payments offshore due to declining global interest rates (Table  1.1). Official external reserves 
fluctuated during the review period and stood at NZD  18.5 billion  (or 5.7% of GDP) by 2020/21 
(Table  1.1). 
1.27.   Total external debt, as a percentage of GDP, amounted to 88.9% in 2020/21, down 
from 102.6% in 2014/15 (Table  1.1). Most of external debt (about 80.0%) is held by the private 
sector.  
1.3  Trade and Investment Performance  
1.3.1   Trade in goods  
1.28.   Based on balance -of-payments figures, New  Zealand's  merchandise exports grew at an 
average annual rate of 3.3% between 2014/15 and 2019/20, while merchandise imports increased 
on average by 5.1% annually between the same years. As a result, the trade deficit increased from  
NZD 453 million in 2014/15 to NZD  3,006  million in 2019/20 (Table  1.2). During that period, the 
performance of New  Zealand's merchandise trade was subject to important fluctuations in 
commodity prices and the exchange rate (Table  1.1). 
1.29.   The performance of New  Zealand's exports through the COVID -19 pandemic was better than 
initially feared, providing much needed support to the economy during the worst of the economic 
disruption. Nonetheless, the global spread of the pandemic and the resulting containment measures 
took a heavy toll on New Zealand's merchandise exports and imports. Indeed, New  Zealand's 
total two-way trade fell 17.0% in the year to March  2021, the largest annual fall since data began 
in the early 1970s.37 Trade performance across New  Zealand's key trading partners has va ried widely 
through COVID -19, based on a range of factors, including the partners' COVID -19 experience and 
the respective bilateral export/import product mix.  
1.30.   New Zealand's merchandise exports increased from USD  34.4 billion in 2015 to 
USD 44.8 billion in 2021, a big jump from USD  38.9 billion in 2020 (Table  A1.1). The primary sector 
continues to be the most important contributor to New  Zealand's export earnings. Live animals and 
animal products, mainly dairy and meat products, represented 45.9% of total me rchandise exports 
in 2021 (compared with 42.6% in 2015). Next comes prepared food, beverages and tobacco, which 
contributed 11.7% of total merchandise exports in 2021 (10.1% in 2015). Vegetable products 
increased their share in total merchandise exports fr om 6.2% in 2015 to 7.6% in 2021 (Chart  1.3). 
1.31.   Merchandise exports also continue to be highly concentrated geographically. In 2021, 71.1% 
of total exports were shipped to Asia, compared with 62.9% in 2015 (Table  A1.2). China continues 
to be New  Zealand's lar gest export market, taking 31.7% of total exports in 2021 (up from 17.6% 
in 2015) , followed by Australia with 12.4%, and the United  States with 10.6% (Chart 1.4) . Other 
important export destinations in 2021 were Japan (5.7%), the EU -27 (5.1%), and other ec onomies 
in Asia, such as the Republic of Korea ; Chinese  Taipei ; and Hong  Kong,  China.  
1.32.   New Zealand's merchandise imports went from USD  36.5 billion in 2015 to USD  49.4 billion 
in 2021, a big increase after reaching USD  37.1 billion in 2020 (Table  A1.3). Tot al imports are 
dominated by manufactured products and raw materials, led by machinery and electrical equipment 
with 22.9% share in 2021 (up from 21.6% in 2015) and transport equipment (16.0% in 2021). 
Chemicals increased their participation in total mercha ndise imports to 9.8%, while petroleum and 
other mineral products decreased their participation to 8.1% (Chart  1.3). 
 
36 IMF (2021), World Economic Outlook , October.  
37 Information provided by the authorities.  WT/TPR/S/426 /Rev.1  • New Zealand  
- 20 - 
  Chart 1.3 Product composition of merchandise trade by main HS section, 2015 and 2021  
 
Source:  WTO Secretariat calculations, based on UN Comtrade database.  
1.33.   Asia was the source of 64.2% of total merchandise imports in 2021 (up from 60.7% in  2015), 
with China increasing its participation from 19.6% to 23.8% during the period. Led by Germany, t he 
EU-27 represented 15.7% of New  Zealand's merchandise imports in 2021, compared with 15.1% 
in 2015. Australia supplied 11.3% of total merchandise imports in 2021 (11.9% in  2015). T he 
participation of the United  States also decreased from 11.8% in 2015 to  8.6% in  2021, while that 
of Japan remained at 6.5% in the same years (Table  A1.4 and Chart  1.4). 
Chart 1.[NZL]  Product composition of merchandise trade by main HS Section, 2015 and 2021
2015 2021
Total:   USD 34.4 billion Total:  USD 44.8 billion  
Misc. manufactured 
articles 3.5%
Base metals &
articles thereof
4.8% 
Total:   USD 36.5 billion Total:   USD 49.4 billion Vegetable products
7.6%Other
11.2%
Source:  WTO Secretariat calculations, based on UN Comtrade database.Other 
11.8%Base metals &
articles thereof
3.9%
Other
12.3%
Transport
equipment
16.0%Prepared food, 
beverages & tobacco  
10.1%Other
15.3%
Chemicals 
9.8%
Transport
equipment
18.1%Base metals & articles 
thereof 3.8%
Wood & articles of 
wood 7.2%
Prepared food, 
beverages & tobacco
7.8%
Machinery;
electrical equipment
21.6% Machinery; 
electrical equipment
22.9% Plastics & 
rubber 5.4% Plastics & 
rubber 5.1% Live animals & 
animal products
45.9%
Petroleum & 
mineral products
10.6%Petroleum & 
mineral products
8.1%
Textiles & textile 
articles 4.8%Live animals & 
animal products
42.6%
Prepared food, 
beverages & tobacco
7.3%Prepared food,
beverages & tobacco 
11.1%Exports (f.o.b.)
Imports (c.i.f.)
Base metals &
articles thereof
5.6%Misc. manufactured 
articles 4.0%Vegetable products
6.2%Wood & articles of
wood 8.8%
Chemicals
6.1%
Textiles & textile 
articles 4.5%Textiles & textile 
articles 2.9%
Chemicals
4.4%
Chemicals 
9.2%Precision equip.
2.2%
Machinery; electrical 
equipment 4.9% Machinery; 
electrical equip.  
5.7% 
Precision equip.
3.3%Precision equip.
3.6%WT/TPR/S/426 /Rev.1  • New Zealand  
- 21 - 
  Chart 1.4 Direction of merchandise trade, 2015 and 2021  
 
Source:  WTO Secretariat calculations, based on UN Com trade database.  
1.3.2   Trade in services  
1.34.   New Zealand is a net exporter of services, an important source of foreign exchange. 
Unsurprisingly, the trading sectors hardest hit by the COVID -19 pandemic have been the services 
sectors, where restrictions on internation al travel have significantly impaired the ability to trade. 
Indeed, t he services surplus increased from NZD  2.4 billion in 2014/15 to a peak of NZD  5.5 billion 
in 2017/18 and declined to NZD  4.0 billion in 2019/20 (Table  1.2). 
1.35.   Despite the pandemic, travel (tourism) remains the most important services category, 
contributing 35.0% of total value of services exports in 2020/21 (Table  1.3). Other business services  
is the second -largest export service with a share of 15.8%, followed by telecommunication, 
compute r and information services (11.6%). Imports of services are led by other business services, 
accounting for 26.0% of the total value of services imports in 2020/21, followed by transportation 
with 18.2% share, and telecommunication, computer and information  services (15.3%).  
Chart 1.[NZL]  Direction of merchandise trade, 2015 and 2021
2015 2021
Exports (f.o.b.)
Total:  USD 34.4 billion Total:  USD 44.8 billion
EU-27
15.1%Other
6.1%
Middle East
3.7%United States
11.8%Imports (c.i.f.)
EU-27
15.7%United States
8.6%
Total:  USD 36.5 billion Total:  USD 49.4 billionThailand 4.6%
Korea, Rep. of
4.5%Korea, Rep. of
3.7%United States
11.8%
Other Asia/Oceania
16.8%United States
10.6%
Thailand 4.1%
Source :  WTO Secretariat calculations, based on UN Comtrade database.Japan
6.5%China
19.6%China
31.7%EU-27
5.1%
China
17.6%Middle East
4.1%
Japan
6.5%Other Asia/Oceania
8.6%Japan
5.7%EU-27
6.8%
Chinese Taipei
2.3%
Australia
17.0% Japan
6.0%Middle East
3.1%
Malaysia 2.7%Other Asia/Oceania
16.0%
Other Asia /Oceania
8.1%Korea, Rep. of
3.1%
United Kingdom
2.3%Malaysia 3.3 %Other
4.8%
Singapore 2.2%
Middle East
4.3%
China
23.8%Singapore 3.5%Korea, Rep. of
3.2%
Australia
11.9%Australia
11.3%Chinese Taipei
2.1%
Australia
12.4%Other 
11.1%Other 
7.9%
United Kingdom
3.4%United Kingdom
2.2%
United Kingdom
2.6%WT/TPR/S/426 /Rev.1  • New Zealand  
- 22 - 
  Table 1.3 Composition of trade in services, 2014/15 -2020/21  
  2014/15  2015/16  2016/17  2017/18  2018/19  2019/20  2020/21  
Total credit (NZD billion)  18.7 22.4 23.3 25.3 26.6 27.6 13.1  
(% of total credit)  
Maintenance and repair  .. .. .. .. .. .. .. 
Transportation  13.9 12.5 12.3 12.5 12.7 12.5 10.4 
Sea transport  2.8 2.4 2.4 2.2 2.3 2.4 5.1 
Air transport  10.8 9.8 9.7 10.1 10.0 9.6 4.1 
Postal and courier services  0.3 0.3 0.3 0.3 0.3 0.5 1.2 
Travel  61.0 62.8 60.6 60.7 59.5 57.7 35.0 
Business  4.7 5.1 4.1 4.2 4.4 4.8 1.0 
Personal  56.3 57.7 56.5 56.5 55.1 52.9 34.0 
Construction  0.1 .. .. .. 0.1 .. .. 
Insurance and pension  .. .. .. .. 0.6 0.2 .. 
Financial service  3.0 3.2 3.2 .. .. 2.7 5.1 
Charges for the use of 
intellectual property  2.1 2.6 3.1 3.6 4.5 4.6 10.3 
Telecommunication, computer, 
and information  4.2 4.3 4.5 4.1 4.4 5.3 11.6 
Other business services  9.4 7.9 7.9 7.7 7.3 7.9 15.8 
Research and development  0.6 0.5 0.7 0.7 0.6 0.6 1.2 
Professional and 
management consulting 
services  2.3 2.0 1.9 1.8 1.8 1.8 3.7 
Technical, trade -related, and 
other business services  6.5 5.4 5.3 5.2 4.8 5.4 10.9 
Personal, cultural, and 
recreational services  2.9 3.0 3.3 2.6 2.7 2.7 4.9 
Government services  1.3 1.1 1.1 0.9 .. .. .. 
Total debit (NZD billion)  16.3 17.5 18.3 19.7 22.2 23.6 16.0  
(% of total debit)  
Maintenance and repair  1.0 1.8 1.7 2.1 2.3 2.0 .. 
Transportation  24.4 23.0 21.7 22.1 22.1 21.0 18.2 
Sea transport  11.9 11.6 9.7 9.6 9.7 9.4 13.1 
Air transport  11.8 10.9 11.5 12.1 11.9 11.2 4.4 
Postal and courier services  0.6 0.5 0.5 0.5 0.4 0.4 0.7 
Travel  30.8 31.1 32.2 32.2 29.8 27.2 7.7 
Business  5.7 5.5 5.2 4.9 4.7 4.7 1.4 
Personal  25.1 25.6 27.0 27.3 25.1 22.5 6.3 
Construction  0.5 0.2 0.3 0.3 0.2 0.2 .. 
Insurance and pension  5.5 6.1 6.2 6.4 8.1 9.2 12.1 
Financial service  2.6 2.9 2.8 2.7 2.3 2.1 3.5 
Charges for the use of 
intellectual property  7.0 7.0 6.9 6.6 5.9 6.0 8.1 
Telecommunication, computer, 
and information  5.9 7.0 8.1 8.1 8.6 9.2 15.3 
Other business services  19.8 18.2 17.1 15.8 16.7 18.5 26.0 
Research and development  0.2 0.3 0.3 0.4 0.4 0.4 0.5 
Professional and 
management consulting 
services  4.4 5.0 5.1 5.1 6.3 7.6 11.1 
Technical, trade-related, and 
other business services  15.1 12.9 11.8 10.3 10.0 10.5 14.5 
Personal, cultural, and 
recreational services  1.2 1.4 2.0 2.7 2.9 3.5 6.0 
Government services  1.3 1.2 1.1 1.0 1.0 1.0 1.2 
.. Not available. Marked as confidential.  
Note:  Figures are based on fiscal year: 1  April to 31  March.  
Source:  Statistics New  Zealand, Balance of Payments . Viewed at: https://www.stats.govt.nz/topics/balance -
of-paym ents. 
1.3.3   Foreign direct investment  
1.36.   According to the IMF, New  Zealand has higher barriers to FDI than do its peers, which 
somewhat impedes entry to foreign firms.38 The recent reform of the Overseas Investment Act is an 
opportunity to attract more high -quality FDI (Section  2.4). The stock of inward FDI increased from 
 
38 IMF (2021), The Land of the Long White Cloud: Turning New  Zealand's Recovery into Sustai ned 
Growth , p. 6.  WT/TPR/S/426 /Rev.1  • New Zealand  
- 23 - 
  NZD 99.6 billion in 2014/15 (41.1% of GDP) to NZD  130.9  billion in 2020/21 or 40.2% of GDP 
(Table  1.4). Australia remains the largest overseas investor, albeit decreasingly, accounting 
for 50.5% of total inward FDI stock as at end -March  2021 (51.6% as at end -March  2015), followed 
by Hong  Kong,  China (7.5%); the United  States (6.7%); Singapore (5.6%); Japa n (5.1%); and the 
United  Kingdom (4.4%). By economic activity, the main recipients of inward FDI are the financial 
sector with 39.1% share, followed by manufacturing (12.9%), and agriculture, forestry, and 
fishing  (7.8%).  
Table 1.4 Inward stock of foreign direct investment, 2014/15 -2020/21  
  2014/15  2015/16  2016/17  2017/18  2018/19  2019/20  2020/21  
Total inward FDI stock 
(NZD  billion)  99.6 98.6 101.1  108.2  114.9  121.6  130.9  
% of GDP  41.1 38.6 37.2 37.2 37.5 37.7 40.2 
By origin (% of total)         
Australia  51.6 51.3 52.8 52.5 48.5 49.0 50.5 
Hong Kong, China  5.6 5.6 6.0 8.7 8.3 8.1 7.5 
United  States  8.0 8.1 8.1 7.6 6.8 6.6 6.7 
Singapore  5.1 5.4 4.0 3.7 4.3 4.9 5.6 
Japan  4.8 4.9 5.2 5.1 5.0 4.7 5.1 
United Kingdom  5.4 5.4 5.4 4.8 4.7 4.6 4.4 
Canada  3.3 4.1 2.7 3.4 4.4 4.2 3.5 
Netherlands  3.6 4.3 4.1 3.8 3.6 3.3 3.1 
Cayman Islands  1.1 1.0 1.1 1.1 1.2 1.9 1.9 
Switzerland  0.5 0.4 0.9 0.6 1.6 1.6 1.4 
China  0.7 0.7 1.1 1.2 1.3 1.3 1.3 
British Virgin Islands  3.1 3.1 3.1 1.1 1.5 1.3 1.3 
Germany  -0.2 -0.3 -0.2 0.7 0.6 0.5 0.5 
Luxembourg  -0.0 0.3 0.3 0.7 0.6 0.5 0.5 
By economic activity 
(% of total)         
Agriculture, forestry, and 
fishing  6.1 6.9 7.2 7.3 8.1 8.3 7.8 
Mining  2.3 1.4 0.7 0.7 1.9 1.5 1.6 
Manufacturing  14.4 15.1 15.3 14.2 14.9 14.5 12.9 
Electricity, gas, water, and 
waste  4.7 2.6 2.5 2.4 2.3 2.2 2.0 
Construction  0.5 0.5 0.5 0.6 0.5 0.7 0.4 
Wholesale trade  4.5 5.1 5.1 5.5 5.4 6.4 5.4 
Retail trade  6.7 5.5 6.0 5.4 5.9 5.4 5.2 
Accommodation and food 
services  0.8 0.7 0.8 1.0 1.1 1.8 2.1 
Transport, postal, and 
warehousing  0.3 0.2 0.8 0.7 0.6 0.7 0.8 
Information media and 
telecommunications  2.4 2.9 2.8 2.6 2.3 2.1 1.8 
Financial and insurance 
services  33.0 34.7 34.7 35.7 34.0 35.7 39.1 
Rental, hiring, and real estate 
services  3.4 3.8 3.4 3.5 3.4 3.2 3.4 
Professional, scientific, and 
technical services  2.3 1.8 1.6 3.0 2.9 1.8 2.2 
Administrative and support 
services  0.6 0.9 1.0 0.8 0.3 0.4 0.3 
Public administration and 
safety  .. .. .. .. .. .. .. 
Education and training  0.0 0.0 0.0 0.0 0.0 0.0 0.0 
Health care and social 
assistance  1.4 1.2 1.2 1.4 2.0 1.8 2.3 
Arts and recreation services  0.0 0.0 0.0 0.0 0.0 0.0 0.0 
Other services  .. .. .. .. .. .. .. 
Unallocated  16.3 16.5 16.1 15.0 14.2 13.4 12.4 
.. Not available. Marked as confidential. Countries having confidential data include Argentina, 
Bermuda, Malaysia, Chinese  Taipei, and the United Arab Emirates.  
Note:  Figures are based on fiscal year: 1  April to 31  March.  
Source:  Statistics New  Zealand, Balance of Payments . Viewed at: https://www.stats.govt.nz/topics/balance -
of-payments . WT/TPR/S/426 /Rev.1  • New Zealand  
- 24 - 
  1.37.   New Zealand's stock of FDI abroad increase d from NZD  25.0 billion in 2014/15 to 
NZD 29.5 billion in 2020/21 (Table  1.5). The main recipient of New Zealand's outward FDI stock 
continues to be Australia with 52.0% share, followed by the United  States (23.7%), and 
Hong Kong,  China (5.4%). Most of New  Zealand's outward FDI stock is invested in manufacturing 
activities  (30.4%).  
Table 1.5 Outward stock of foreign direct investment, 2014/15 -2020/21  
  2014/15  2015/16  2016/17  2017/18  2018/19  2019/20  2020/21  
Total outward FDI stock 
(NZD billion)  25.0 25.0 25.2 24.4 26.4 27.6 29.5 
% of GDP  10.3 9.8 9.3 8.4 8.6 8.6 9.1 
By origin (% of total)         
Australia  56.9 47.4 50.2 49.1 49.4 51.7 52.0 
United  States  14.7 18.4 15.6 15.2 13.0 19.5 23.7 
Hong Kong, China  2.2 8.6 8.0 8.8 8.7 6.9 5.4 
United Kingdom  5.7 6.1 4.9 5.6 5.1 3.8 3.3 
Bermuda  1.1 1.2 1.2 1.2 1.2 3.6 3.2 
Singapore  6.6 5.4 5.5 3.6 3.2 1.7 1.7 
Canada  0.7 0.8 0.5 0.3 0.6 1.1 1.3 
China  0.3 0.2 0.1 0.4 0.2 0.4 0.3 
Japan  0.0 -0.4 0.1 0.4 0.2 0.3 0.2 
Chile .. .. .. .. 2.4 0.1 0.1 
Chinese  Taipei  0.1 0.0 0.0 0.1 0.1 0.2 0.1 
Germany  .. .. 0.2 0.2 0.2 0.1 .. 
United Arab Emirates  .. .. 0.4 0.4 0.3 0.0 .. 
France  .. .. 0.3 0.3 .. .. .. 
Netherlands  1.7 1.4 1.5 .. .. .. .. 
By economic activity 
(% of total)         
Agriculture, forestry, and 
fishing  .. .. .. .. .. .. .. 
Mining  .. .. .. .. .. .. .. 
Manufacturing  38.3 36.2 36.2 39.7 38.0 34.6 30.4 
Electricity, gas, water, and 
waste services  2.9 3.0 .. .. .. .. .. 
Construction  .. .. .. .. .. .. .. 
Wholesale trade  15.8 22.1 21.8 19.2 17.5 11.9 12.5 
Retail trade  .. .. 4.6 5.4 5.2 6.2 6.0 
Accommodation and food 
services  .. .. .. .. .. .. .. 
Transport, postal, and 
warehousing  5.5 5.1 .. .. .. .. .. 
Information media and 
telecommunications  .. .. .. 2.5 2.3 .. .. 
Financial and insurance 
services  6.2 8.9 9.7 6.1 9.7 18.1 .. 
Rental, hiring, and real estate 
services  .. .. .. .. .. .. .. 
Professional, scientific, and 
technical services  .. 0.5 0.4 0.4 0.4 0.7 0.6 
Administrative and support 
services  .. .. .. .. .. .. .. 
Public administration and 
safety  0.0 0.0 0.0 0.0 0.0 0.0 0.0 
Education and training  0.0 0.0 0.0 0.0 0.0 0.0 0.0 
Health care and social 
assistance  .. .. .. .. .. .. .. 
Arts and recreation services  1.7 2.2 2.2 1.3 2.1 1.9 2.6 
Other services  0.0 0.0 0.0 0.0 0.0 0.0 0.0 
Unallocated to industry  6.0 6.0 6.0 6.2 5.7 5.5 5.1 
.. Not available. Marked as confidential. Other countries having confidential data include  Argentina, 
Belgium, the Cook  Islands, Luxembourg, and Malaysia.  
Note:  Figures are based on fiscal year: 1  April to 31  March.  
Source:  Statistics New  Zealand, Balance of Payments . Viewed at: https://www.stats.govt.nz/topics/balance -
of-payments .WT/TPR/S/426 /Rev.1  • New Zealand  
- 25 - 
  2  TRADE AND INVESTMENT REGIMES  
2.1  General Framework  
2.1.  New Zealand's system of government and related legal framework were not subject to any 
significant change during the review period. New  Zealand is a constitutional monarchy with a 
parliamentary government.  
2.2.  Its constitution is not reflected in one single document but consists of a combination of legal 
documents, common law, and constitutional conventions. Its political system is defined by 
the Constitution Act of 1986, under which the Head of the State is the British Sovereign, who is 
represented in New  Zealand by the Governor -General. Both can exercise their powers only with the 
advice and con sent of the Government, which is led by the Prime Minister. The Governor -General  is 
appointed by the Sovereign but picked by the Prime Minister. The Governor -General stays in office 
for a period of five years. The current Governor -General took office in Oc tober  2021.  
2.3.  The Government has three branches: executive, legislative, and judiciary. The Executive is 
represented by the executive council led by the Prime Minister.1 The legislative branch is composed 
of the Governor -General and the Parliament (House of  Representatives), which is unicameral, and 
has in general 120 Members elected every three years.2 The last election took place in  2020. 
Elections are based on a "mixed member proportional" voting system where voters have two votes: 
one for a political pa rty and one for an electorate Member of Parliament (MP). The leader of the 
party that wins the largest number of seats usually becomes Prime Minister and Head of 
Government. However, there have been instances where a minority coalition government has been 
formed and the Prime Minister is the leader of a party that did not win the most seats, but has 
managed to gain support of a majority of MPs through a coalition agreement with other political 
party or parties. The Parliament is responsible, inter alia, for making new laws and amending existing 
ones and scrutinizing the Executive. Before becoming a law (Act), the proposed law – a bill – is 
introduced in the Parliament, and goes through different stages, including requests for public 
submissions and invitatio ns to public hearings. Once the bill's final form has been agreed, the 
Parliament can pass it or reject it. If the bill is passed, it becomes a law (i.e.  Act of Parliament) when 
the Governor -General assents to it. In the case of binding international treat ies, any related action 
(such as the decision to sign a free trade agreement (FTA)) is the prerogative of the Executive and 
is taken by the Cabinet. However, in accordance with the Parliament's Standing Orders (i.e. rules of 
procedure), all multilateral tr eaties, and major bilateral treaties of "particular significance", must be 
presented to Parliament for their examination before ratification, together with a National Interest 
Analysis (NIA) prepared by the Executive. The NIA must contain the advantages an d disadvantages 
of the proposed agreement, along with other information as set out in the Standing Orders. The 
determination of whether or not a bilateral treaty is considered to be a major bilateral treaty of 
particular significance is made by the Ministe r of Foreign Affairs on the advice of government officials 
and based on a set of standard criteria. Bilateral treaties that are not considered to be a major 
bilateral treaty of particular significance are ratified without involving the Parliament. The appl ication 
of this discretion is commonly referred to as a "waiver" of the requirement to present the treaty to 
the Parliament, and it is most commonly used for bilateral treaties dealing with narrow or technical 
matters.  
2.4.  The judiciary branch has four main le vels of courts: district courts, the High Court, the 
Court  of Appeal, and the Supreme Court, with the Supreme Court being the highest and final court. 
There are also specialist courts, tribunals, and authorities.  
2.5.  New Zealand is member of the Commonwealth o f Nations, which consists of 54  countries.  
 
1 While the meaning of the expression "the Crown" (or Sovereign) varies depending on the context in 
which it is used, "the Crown" is generally used to describe t he executive government (i.e. Ministers and their 
departments) may also be r eferred to as "the Crown". Viewed at: https://dpmc.govt.nz/our -business -
units/cabinet -office/supporting -work-cabinet/cabine t-manual/1 -sovereign -governor -1. 
2 The usual number of seats in Parliament is 120, but this number may sometimes be greater because 
of overhang seats. Overhang seats may arise when a party wins more electorate seats than it is entitled to , 
based on its sha re of the party vote.  WT/TPR/S/426 /Rev.1  • New Zealand  
- 26 - 
  2.2  Trade Policy Formulation and Objectives  
2.6.  New Zealand is a strong advocate for free trade and sees trade as critical for its prosperity. 
During the review period, New  Zealand updated its trade policy strategy in 201 7, and then in  2020 
following a change of Government. The same year, New  Zealand also launched a Trade Recovery 
Strategy in response to the COVID -19 pandemic (see below).  
2.7.  The institutional framework for the formulation and implementation of New  Zealand's 
trade policy has remained largely the same since the last report. The Ministry of Foreign Affairs and 
Trade  (MFAT) is the main governmental entity responsible for advising the Government on the 
formulation and implementation of New  Zealand's trade policy. T he MFAT also leads all FTAs and 
WTO negotiations, and works in close coordination with the relevant technical agencies, such as the 
Ministry for Primary Industries and Ministry of Business, Innovation and Employment, to ensure that 
the country's trade poli cies support the Government's overall objective of achieving a productive, 
sustainable, and inclusive economy.3 
2.8.  All trade -related legislation is enacted by Parliament and must be assented to by the 
Governor -General to become law. Trade agreements are the responsibility of the Executive but are 
subject to a parliamentary examination process, including public consultations, before they are 
ratified (see above).  
2.9.  In March  2017, New  Zealand launched the Trade Agenda 2030 to update its trade s trategy and 
set its priorities for the next 30 years.4 This plan was superseded by the Trade for All Agenda, which 
was developed based on a wide public consultation process that took place in  2018 and on a report 
resulting from that exercise. The Trade for All Agenda was launched in March  2018 to address public 
concerns regarding the country's participation in FTAs, and ensure that trade policy delivers for all 
New Zealanders. Under this initiative, New  Zealand conducted public consultation s from August to  
October  2018 to get feedback from the population on how trade policy should be approached, and 
established a Trade for All Advisory Board in charge of producing an independent report with 
recommendations to the Government on the Trade for All Agenda. The Advisory Board was 
established in November  2018 and its report released in November  2019. The findings and 
recommendations of the report include, inter alia, to: (i)  review current Investor -State Dispute 
Settlement provisions in FTAs as new arrangements be come available5; (ii) provide greater support 
to the participation of small and medium -sized enterprises (SMEs) in international trade; and 
(iii) promote the inclusion of provisions on the environment, labour , and gender in FTAs.6 The 
recommendations of the Advisory Board and the core principles approved by the Cabinet are the 
foundation of the Trade for All Agenda.7 For the authorities, the goal is a trade policy that works 
alongside other government policies to support sustainable and inclusive economic development.  
2.10.   In June  2020, New  Zealand also put in place the Trade  Recovery Strategy to help businesses 
to overcome the ec onomic disruptions  resulting from the COVID -19 pandemic . The Strategy has 
three  pillars: (i)  broadening the support for exporters; (ii)  reinvigorating international trade 
architecture by working towards strengthening and reforming the WTO, and pursuing bil ateral and 
plurilateral trade agreements; and (iii)  refreshing key trade relationships to expand market 
 
3 New Zealand Government (2019), Economic Plan for a Productive, Sustainable and Inclusive Economy , 
September. Viewed at: https://www.mbie.govt.nz/assets/economic -plan.pdf. 
4 New Zealand Government (2017), "PM Launches Ambitious Trade Agenda", 24  March. Viewed at: 
https://www.beehive.govt.nz/release/pm -launches -ambitious -trade -agenda . Under the Trade Agenda  2030, 
New Zealand targeted to have 90% of its merchandise exports to be covered by FTAs by  2030 (up from an 
estimated 53% at the time of writing the Agenda), and identified four pillars for the country's trade policy. 
These pillars were to: (i)  expand New  Zealand's network of FTAs, maximize the benefits of existing agreements 
though upgrades and enhanced implementation, and sustain the WTO; (ii)  intensify its work on non -tariff 
barriers; (iii)  provide greater focus to services, investment, and the digital economy; and (iv)  provide 
appropriate assistance to exporters to enhance their competitiveness. The authorities indicate that this plan no 
longer guides New  Zealand's trade policy, as it was superseded by the Trade for All Agenda.  
5 The report also notes that the Government opposes the inclusion of Investor -State Dispute Settle ment 
provisions in FTAs (see the Trade for All Advisory Board (2019), Report of the Trade for  All Advisory Board , Key 
Findings section, para.  9). 
6 Trade for All Advisory Board (2019), Report of the Trade for All Advisory Board , November.  
7 The authorities  further indicate that there is no single document for the Trade for All Agenda, but 
rather various documents including the Trade for All Agenda Advisory Board report, and the Government 
response.  WT/TPR/S/426 /Rev.1  • New Zealand  
- 27 - 
  opportunities and achieve further trade diversification. The Trade Recovery Strategy further seeks 
to build New Zealand's economic resilience against fu ture disruptions.8 
2.11.   Some of the actions taken by the Government to support exporters under this strategy include 
expanding the offering of advisory and market intelligence services and the number of beneficiaries 
through its international business developm ent agency – New Zealand Trade and Enterprise (NZTE). 
To support the implementation of this first pillar, the MFAT also established a Trade Recovery Unit 
dedicated to, inter alia, resolving the trade barriers faced by businesses, ensuring the good 
function ing of supply chains, and addressing any disruptions to trade resulting from the COVID -19 
pandemic.9 
2.3  Trade Agreements and Arrangements  
2.3.1   WTO  
2.12.   New Zealand, a founding Member of the WTO, is actively engaged in the work of the 
organization. During the review pe riod, it continued to contribute to the activities of its committees, 
and participated in negotiations, monitoring functions, dispute settlements, and plurilateral 
initiatives. New  Zealand also took leadership roles as chairs of WTO bodies, including the 
General  Council in  202010, and promoted discussions on new issues as a co -sponsor of initiatives or 
proposals dealing with, for example, climate and the environment (e.g. fossil fuel subsidy reform) ; 
export competition ; micro, small, and medium -sized enterp rises (MSMEs) ; e-commerce ; disciplines 
on domestic regulation ; investment facilitation for development ; and gender and trade. New  Zealand 
is part of the Friends of MSMEs group, and a founding member of the Friends of Fish group, 
comprising WTO Members seek ing to complete negotiations on rules regarding fisheries subsidies. 
New Zealand is also a founding member of the Cairns Group, a coalition of agricultural exporting 
members that continue to push for the liberalization of global trade in agricultural expor ts. It 
supports a TRIPS waiver on COVID -19 vaccines and discussions on the broader proposal submitted 
by other WTO Members, as well as efforts to reform and strengthen the WTO, as shown by joining 
the proposals for improving WTO notification and transparen cy rules11, and on Appellate  Body 
appointments and functioning.12 
2.13.   In August  2015, New  Zealand became party to the Agreement on Government Procurement 
(GPA)13, and in September the same year, it ratified the Agreement on Trade Facilitation.14 
New Zealand is  a member of the Information Technology Agreement, and in December  2015 it 
endorsed the expansion of its coverage. It has also participated in the negotiations for an 
Environmental Goods Agreement, which were launched at the WTO in  2014, but have been stal led 
since 2016 when the last round of negotiations took place. New  Zealand has signed the Fourth 
and Fifth Protocols to the General Agreement on Trade in Services (GATS).  
2.14.   During the review period, New  Zealand was involved as a complainant in 1 case, initia ted in 
May 201415, and as a third party in 21  cases. New Zealand has never been the object of a complaint 
so far.16 The dispute proceedings initiated by New  Zealand in 2014 were against certain measures 
(mainly import licensing measures) imposed by Indonesia on the imports of horticultural products, 
 
8 MFAT, Trade Recovery Strategy . Viewed at: https://www.mfa t.govt.nz/en/trade/trade -recovery -
strategy/trade -recovery -strategy -overview/ .  
9 In addition to these actions and to offset the impacts of domestic lockdowns , the NZTE implemented 
various types of COVID -19 financial support schemes for businesses. These sc hemes include a wage subsidy 
scheme, a COVID -19 resurgence support payment, and a small business cashflow loan. Business.govt.nz, 
COVID -19: Financial Support for Businesses . Viewed at: https://www.business.govt.nz/covid -19/financial -
support -for-businesses/ . 
10 Every year between 2015 and 2020, New  Zealand was a chair of a WTO body. WTO, Current WTO 
Chairpersons . Viewed  at: https://www.wto.org/english/thewto_e/secre_e/current_chairs_e.htm .  
11 WTO documents JOB/GC/204/Rev.8, JOB/CTG/14/Rev.8, 12  November  2021.  
12 WTO documents WT/GC/W/752, 26  November  2018; and WT/DSB/W/609, 12  January  2018; and  
their revisions.  
13 WTO document WT/Let/1049, 20  July 2015. New Zealand submitted its instrument of accession to the 
WTO Secretariat  on 13 July 2015, and the GPA came into effect 30 days later, on 12  August  2015.  
14 WTO document WT/Let/1082, 2  October  2015.  
15 This case was the subject of two separate consultations, one requested in August 2013 (DS466) and 
another requested in May 2014 (DS477); only the latter (DS477) progressed to the panel stage.  
16 WTO Disputes Database. Viewed at: 
https://www.wto.org/english/tratop_e/dispu_e/find_dispu_cases_e.htm . WT/TPR/S/426 /Rev.1  • New Zealand  
- 28 - 
  animals, and animal products.17 In September  2015, the United  States a lso joined the case as a 
complainant. The Panel and Appellate  Body reports for this case were adopted in November  2017 
and concluded that the measures in question were inconsistent with WTO  obligations and that 
Indonesia had to bring them into conformity.  
2.15.   New Zealand maintains a strong record of notifications to the WTO. From 1  January  2015 
to 31 December 2021, it provided 366 notifications18, of which almost half are in relation to the 
Agreement  on the Application of Sanitary and Phytosanitary Measures (16 6). An important number 
of notifications also fell within the Agreement on Agriculture (42 notifications), the Agreement on 
Technical Barriers to Trade (39), the Anti -Dumping Agreement (23), the GATS (22), the Agreement 
on Government  Procurement (23), the TRIPS  Agreement (17), and the Agreement on Subsidies and 
Countervailing Measures (15). The most recent notifications submitted during the review period are 
listed in Table  A2.1.  
2.3.2   Regional and preferential trade agreements  
2.16.   New Zealand currently has 13  FTAs i n force involving 29  economies, including some of its 
main trading partners, namely China, Australia, and Japan (Table  A2.2). FTAs are a key component 
of New  Zealand's trade policy as underlined in its recent strategies. During the review period, 
New Zeala nd expanded its network of FTAs by adding four  new agreements and intensified its efforts 
to update existing ones (Table  2.1).19 In 2015, it signed an FTA with the Republic of Korea, followed 
two years later by the Pacific Agreement on Closer Economic Rela tions Plus (PACER Plus) (2017), 
the Comprehensive and Progressive Agreement for Trans -Pacific Partnership (CPTPP) (2018), and 
the Regional Comprehensive Economic Partnership  (RCEP) (2020). All of these agreements have 
been notified to the WTO, except for t he RCEP, which recently entered into force on 
1 January  2022.20 New Zealand also updated its FTAs with China and with Singapore. The protocol 
updating the FTA with Singapore has been in force since January  2020, while the one with China is 
expected to ente r into force in April  2022. These updates have not been notified to the WTO.  
2.17.   In parallel, New  Zealand had ongoing various trade negotiations. It had launched, but not yet 
completed, negotiations for FTAs with the European  Union, India, and the Pacific Alli ance countries, 
and it was also negotiating the update of the Association of Southeast Asian Nations 
(ASEAN) -Australia -New Zealand FTA.21 Moreover, i n November  2021, New  Zealand signed an 
agreement in principle with the United  Kingdom on an FTA that define d the key terms on which the 
text will be finalized and concluded. The New  Zealand -United  Kingdom FTA was subsequently signed 
on 28  February  2022, at the time this report was being finalized. The Agreement is not yet in force, 
as both parties have to first  complete their internal ratification procedures.  
2.18.   In addition to its FTAs, New  Zealand has two long -standing trade agreements involving some 
reciprocity and under which it grants tariff preferences to a limited number of goods from Canada 
(i.e. Agreement o n Trade and Economic Cooperation of 1981)22, and the United  Kingdom 
(Table  3.5).23 None of these agreements have been notified to the WTO.  
 
17 Indonesia – Importation of Horticultural Products, Animals and Animal Products (DS477, DS478).  
WTO document series WT/DS477 and WT/DS478.  
18 Excluding addendum and corrigendum for TBT - and SPS -related notifications.  
19 Regarding the scope of application of New  Zealand FTAs, the authorities indicate that all of 
New Zealand's modern FTAs include a Treaty of Waitangi exception clause that protects the Government's 
ability to adopt policies that fulfil its obligations to Māori, including under the Treaty of Waitangi, even i f the 
measures are inconsistent with New  Zealand obligations under the corresponding FTA.  
20 In accordance with RCEP provisions, the RCEP will enter into force 60  days following ratification by at 
least 6  ASEAN members and 3 non -ASEAN members.  
21 MFAT, Free Trade Agreements under Negotiation . Viewed at: 
https://www.mfat.govt.nz/en/trade/free -trade-agreements/free -trade -agreements -under -negotiation /. 
22 The text of this Agreement can be viewed at: 
https://www.treaties.mfat.govt.nz/search/details/t/1402 . Under the Agreement, New  Zealand and Canada took 
commitments on a reciprocal basis.  
23 The authorities indicate that the tariff preferences granted to the United  Kingdom predated the 
GATT  1994 and were carried over following the GATT's entry into force. These preferences are not reciprocal on 
a one -to-one basis but involve some reci procity. They further indicate that the legal instruments regulating 
these preferences are the Tariff Act  1988 (7A(2)(a) and (b)) and the Working Tariff Document.  WT/TPR/S/426 /Rev.1  • New Zealand  
- 29 - 
  2.19.   Under its most -favoured -nation (MFN) regime, New  Zealand has eliminated duties in 
about  61% of its tariff lines, whil e under most of its FTAs, almost all of its tariff lines are duty -free 
(Table  3.5). 
Table 2.1 FTAs signed or upgraded during 2015 -21 
 FTA Signed  Entry into force  Coverage's 
main features  New FTAs  New Zealand – Korea, Rep. of  23 March  2015 20 December  2015 Goods, services, 
and investment  
Pacific Agreement on Closer 
Economic Relations (PACER Plus)  14 June 2017 13 December  2020 Goods, services, 
and investment  
Comprehensive and Progressive 
Agreement for Trans -Pacific 
Partnership (CPTPP)  8 March  2018 30 December  2018 Goods, services, 
and investment  
Regional Comprehensive 
Economic Partnership (RCEP)  15 November  2020 1 January  2022 Goods, services, 
and investment  Upgraded 
FTAs  Protocol upgrading 
New Zealand -Singapore FTA  1 January  2020 1 January  2020 Various 
regulatory areas  
Protocol upgrading 
New Zealand -China FTA  26 January  2021 7 April 2022 Various 
regulatory areas  
PACER Plus:  
 Involves New  Zealand and 10 other partners: Australia, Cook Islands, Kiribati, Nauru, Niue, Samoa, 
Solomon Islands, Tonga, Tuvalu, and Vanuatu. The Agreement is not yet in force for Nauru, Tuvalu, 
and Vanuatu.  
CPTPP:  Involves New  Zealand and 10 other count ries: Australia, Brunei  Darussalam, Canada, Chile, Japan, 
Malaysia, Mexico, Peru, Singapore, and Viet  Nam. The Agreement is not yet in force for 
Brunei  Darussalam, Chile, and Malaysia. For the other Parties, the Agreement entered into force on 
30 December  2018, except for Peru and Viet  Nam. The entry into force was on 19  September  2021 
for Peru, and 14 January  2019 for Viet  Nam.  
RCEP:  Involves  New Zealand and 14 other countries: Australia, Brunei  Darussalam, Cambodia, China, 
Indonesia, Japan, the Republic  of Korea, the Lao People's Democratic Republic, Malaysia, Myanmar, 
the Philippines, Singapore, Thailand, and Viet  Nam. The Agreement entered into force on 
1 January  2022 for all parties, except for Indonesia, Malaysia, Myanmar, the Philippines, and the 
Republic of Korea. For the Republic  of Korea, entry into force was on 1  February  2022, and for 
Malaysia, it will be on 18  March  2022.  
Source:  WTO Secretariat.  
New Zealand – Republic of Korea (2015)  
2.20.   The FTA between New  Zealand and the Republic  of Korea was sig ned in March  2015 and 
entered into force in December of the same year. Under this FTA, New  Zealand committed to 
liberalize all of its tariff lines over a transition period of seven years ending in  2021, with most of 
the lines (about  86%) becoming duty -free upon the Agreement's entry into force. At the time of the 
Agreement, about 58% of New  Zealand's lines were duty -free on an MFN basis, and as at 
December  2021, New  Zealand had fully implemented its liberalization schedule (Table  3.5). The 
Republic  of Korea  liberalized 74.6% of its tariff lines upon entry into force of the Agreement, and 
by 2034, the end of the transition period, New  Zealand exporters will face zero duties on 97.9% of 
the Republic of Korea's tariff lines.24 
2.21.   The Agreement also covers services , investments, government procurement, intellectual 
property rights, competition, environment, labour, and SMEs. In services, commitments are similar 
to those taken under the CPTPP. In investments, commitments include the establishment of an 
Investor -State  Dispute Settlement mechanism.  
 
24 WTO Factual Presentation of the Free Trade Agreement between the Republic  of Korea and 
New Zealand, WTO document WT/REG367/1/Rev.1, 28  September  2016.  WT/TPR/S/426 /Rev.1  • New Zealand  
- 30 - 
  Pacific Agreement on Closer Economic Relations Plus (2017)  
2.22.   PACER Plus was signed in 2017 by New  Zealand, Australia, and nine other Pacific Islands 
countries ( Cook Islands, Kiribati, Nauru, Niue, Samoa, Solomon Islands, Tonga,  Tuvalu, and 
Vanuatu).25 PACER Plus  entered into force in December  2020 for all parties except Nauru, Tuvalu, 
and Vanuatu. As of February  2022, Nauru and Vanuatu had still to ratify the Agreement. For Tuvalu, 
which recently ratified it, the Agreement will enter into force in April  2022. Of the 11  signatories, 
6 are WTO Members (Australia, New  Zealand, Samoa, Solomon  Islands, Tonga, and Vanuatu) , and 
all are members of the Pacific Islands Forum (PIF). In 2021, trade (imports and exports) between 
New Zealand and the PIF parties accounted for  less than 1 % of New  Zealand's total trade.26 
2.23.   PACER Plus was negotiated following the PACER framework of  2001 that sought to deepen 
trade and investment liberalization in the Pacific region and that provided, inter alia, for the future 
negotiation of reciproc al FTAs between Australia, New  Zealand, and other PIF economies.27 Prior to 
PACER Plus, trade in goods between New  Zealand and the PIF economies was regulated by the South 
Pacific Regional Trade Economic Cooperation Agreement (SPARTECA) of  1980 – a non -reciprocal 
trade agreement among 16  PIF economies  – and the Generaliz ed System of Preferences 
(Section  2.3.3). PACER Plus provides for reciprocal trade liberalization among its parties, and 
increased predictability for the trade relationship with the parties that are non -WTO Members as 
they have bound their tariffs and made  other commitments under the Agreement.  
2.24.   PACER Plus covers trade in goods and services, but also includes some commitments on 
investment. Other areas covered by the Agreement are TBT, SPS, trade remedies, and development 
and economic cooperation. The Agreem ent also provides for a mechanism for the resolution of 
disputes between States, but not for investor -state disputes.  
2.25.   In trade in goods, the Agreement provides for the elimination of duties upon its entry into 
force for all tariff lines for New  Zealand and  Australia, and for 94.2% of tariff lines for Kiribati with 
remaining lines kept unbound. For Kiribati, all tariff lines were already duty -free at the time of the 
Agreement.28 For the other signatories, duties will be eliminated for 81.5% (Vanuatu) to 98.6 % 
(Nauru) of their total number of tariff lines over a transition period going up to 35  years depending 
on the party, and starting in some cases after only 10  years of the Agreement's entry into force, or 
when they graduate from the least developed status,  whichever is later so that tariff reductions will 
be fully implemented at the earliest by  2055.29 The Agreement also includes an MFN clause under 
which any improvements on market access resulting from the negotiation of another preferential 
trade agreemen t between a party and a non -party shall be extended to the parties, provided certain 
conditions are met.30 The Agreement also includes an industry development provision under which 
PIF parties may delay the implementation of their scheduled reductions or i ncrease duties to support 
the establishment or expansion of a new or existing industry, or to support an industry destroyed or 
substantially damaged as a result of hostilities or natural disasters. Other flexibilities applying to PIF 
economies include prov isions on the application of transitional safeguards.31 
2.26.   In 2021, the Parties established the PACER Plus Implementation Unit in Samoa to monitor 
and support the implementation of the Agreement and its development and economic cooperation 
work programme for PIF parties.  
 
25 All parties signed PACER Plus on 14 June 2017, except for Vanuatu, which signed it on 7  September 
of the same year. The negotiations originally also included the Marshall Islands, the Federated  States 
of Micronesia, and Palau, but they decided not to sign the concluded agreement. The authorities further 
indicate that Fiji and Papua New Guinea also participated, but withdrew at an earlier stage of the negotiations.  
26 WTO Secretariat based on UN Comtrade data.  
27 Pacific Agreement on Closer Economic Relations, Article  5. 
28 MFAT (2017), Pacific Agreement on Closer Economic Relations (PACER) Plus National Interest 
Analysis , 6 June. Kiribati, a non -WTO member, eliminated duties on all its tariff lines in  2014.  
29 Australia Department of Foreign Affairs and Trade, National Interest Analysis [2017] ATNIA  31 with 
attachments Pacific Agreement on Closer Economic Relations Plus (PA CER Plus) and Associated Side Letter 
(Nuku'alofa, 14  June 2017) [2017] ATNIF 4 . 
30 PACER Plus, Article  3. 
31 PACER Plus, Articles 8 and 9.  WT/TPR/S/426 /Rev.1  • New Zealand  
- 31 - 
  Comprehensive and Progressive Agreement for Trans -Pacific Partnership (2018)  
2.27.   New Zealand is party to the CPTPP, together with 10  other countries – Australia, 
Brunei  Darussalam, Canada, Chile, Japan, Malaysia, Mexico, Peru, Singapore, and Viet  Nam. The 
CPTPP was signed in March  2018 and  entered into force in December  2018 for those that had ratified 
it, namely New  Zealand, Australia, Canada, Japan, Me xico, and Singapore.32 Since then, the 
Agreement has come into force also for Viet  Nam ( January  2019)  and Peru (September  2021), 
leaving the entry into force pending only for Brunei  Darussalam, Chile, and Malaysia. Similarly to 
the case for other CPTPP par ties, the CPTPP overlaps with some of New  Zealand's existing FTAs – 
those with Australia, Brunei  Darussalam, Chile, Malaysia, Singapore, and Viet  Nam.  
2.28.   The CPTPP incorporates by reference most of the provisions of its predecessor, the 
Trans -Pacific Partners hip (signed but not in force).33 It includes commitments in trade in goods and 
services, and intellectual property, as well as in areas not covered or with limited coverage under 
WTO Agreements, such as investments, government procurement, labour, environm ent, 
competition, e -commerce, and SMEs. In trade in goods, New  Zealand liberalized most of its tariff 
lines (about  95%) immediately upon the Agreement's entry into force in  2018, and all remaining 
lines will become duty -free by  2024.34 At the time of the A greement's entry into force, about  59% 
of New  Zealand's lines were duty -free on an MFN basis. Other parties will also liberalize most of their 
tariff lines, with some exceptions, over a transition period going from immediate (Singapore) to 
more than 20 yea rs after entry into force, in the case of Viet  Nam (2039) and Japan (2038).35 In 
services, under the CPTPP New  Zealand made commitments in all activities identified in the WTO 
Services Sectoral Classification list36, except for health -related and social se rvices, which are also 
unbound under its GATS schedule. These commitments were in general broader than under 
New Zealand's GATS schedule, despite some reservations. For example, New  Zealand took 
commitments in franchising, sewage, sanitation, entertainment , news agencies, and internal 
waterways transport services, all unbound under the GATS, and expanded those in construction and 
related engineering services. In investment, the CPTPP provides for a higher screening threshold for 
transactions relating to sig nificant business assets (Section  2.4) from investors from CPTPP parties 
(NZD  200 million instead of NZD  100 million), and for a mechanism for the settlement of disputes 
between investors and the host Party. This dispute settlement mechanism applies betwee n 
New Zealand and all other CPTPP parties, except Australia, Brunei  Darussalam, Malaysia, Peru, and 
Viet Nam, with whom New  Zealand has secured reciprocal side letters agreeing to the 
non-application of this mechanism. According to the authorities, signato ries to these side letters 
cover more than 80% of New  Zealand's overseas investments from CPTPP countries as a whole.  
Regional Comprehensive Economic Partnership (2020)  
2.29.   The RCEP is New Zealand's  most recent FTA in force . It was signed on 15  November  2020 b y 
New Zealand and 14  other countries37 in the Indo -pacific (i.e.  Australia, China, Japan, the Republic 
of Korea, and 10 ASEAN member States).38 The Agreement entered into force on 1  January  2022 
following the ratification of six of its members, and once fu lly in force it will be viewed as the largest 
free trade zone yet negotiated in terms of gross domestic product (GDP) (accounting for  29% of 
world GDP in  2020).39 RCEP covers trade in goods and services, and investments.  
2.30.   In trade in goods, improvements in terms of market access under RCEP will be limited as 
New Zealand already has FTAs (in some cases more than one) with all RCEP Parties, and those FTAs 
 
32 New Zealand ratified the CPTPP on 25  October  2018.  
33 The CPTPP was signed following the withdrawal of the United  States from the Trans -Pacific 
Partnership, which was signed in  2016 but did not come into force. Twenty -two Articles were suspended from 
the TPP under the CPTPP.  
34 WTO Factual Presentation of the  Comprehensive and Progressive Agreement for Trans -Pacific 
Partnership and its Appendix 5 New  Zealand, WTO documents WT/REG395/1/Rev.1, 8  September  2021; and 
WT/REG395/1/Add.5, 1  April 2021.  
35 In the case of Viet  Nam's commitments to Mexico, the end of imp lementation will be in 2039 rather 
than 2038.  
36 The WTO Services Sector Classification (WTO document MTN.GNS/W/120, 10  July 1991) is based on 
the UN Central Product Classification, and comprises 11  sectors and 55  subsectors.  
37 India left the RCEP negotiati ons in  2019.  
38 The 10 ASEAN countries are Brunei  Darussalam, Cambodia, Indonesia, Lao People's Democratic 
Republic, Malaysia, Myanmar, the  Philippines, Singapore, Thailand, and Viet  Nam.  
39 Asian Development Bank (2020), ADB Briefs , No. 164, December.  WT/TPR/S/426 /Rev.1  • New Zealand  
- 32 - 
  will continue to operate in parallel. However, RCEP is expected to bring additional benefits compared 
to existing FTAs in other areas, notably in reducing non -tariff barriers. For instance, the Agreement 
provides for a common set of rules of origin and common rules regarding certain customs 
procedures, which will greatly facilitate the movement of goods across  its Parties.40 Under RCEP, 
New Zealand will complete the implementation of its liberalization tariff schedule by  2041, with 92% 
of its tariff lines becoming duty -free by  2036, after which only tariff reductions will take place. For 
other parties, the shar e of tariff lines that will become duty -free under the Agreement ranges 
between 81% (by Japan for imports from the Republic  of Korea) and 100% (Singapore).41 The 
transition periods for implementation will also vary across parties ranging from immediate to 
36 years from the Agreement's entry into force.42 
2.31.   RCEP will expand some of New  Zealand's commitments under existing FTAs in services and in 
particular investments because in some of New  Zealand's existing FTAs with RCEP parties the 
coverage of investment is limited, such as the FTAs with  ASEAN countries that are not parties to 
the CPTPP.43 
2.32.   RCEP also includes provisions on TBT, SPS, trade remedies, intellectual property, electronic 
commerce, competition policy, SMEs, government procurement, and e conomic and technical 
cooperation. It provides for a state -to-state dispute settlement mechanism and for the review of the 
inclusion of another one for the resolutions of investor -state disputes within five  years from the 
Agreement's entry into force.44 
Upgrades of existing FTAs  
2.33.   During the review period, New  Zealand amended the FTAs it has with Singapore and China to 
align them with its more recent trade practices. It is also in negotiations to update the 
ASEAN -Australia -New Zealand FTA (AANZFTA).  
2.34.   In May 2019, New  Zealand and Singapore signed a protocol to update their FTA of  2000.45 
The protocol entered into force on 1  January  2020 and expands the coverage of the Agreement by 
including chapters on electronic commerce and regulatory cooperation and fou r new sectoral 
annexes to the TBT chapter that replicate those under the CPTPP. Under these new TBT  annexes, 
the Parties remove some regulatory requirements for wine and distilled spirits, pharmaceuticals, 
medical devices, and cosmetics. The protocol also improves existing commitments in other areas. 
For instance, it updates the chapters on rules of origin, which are now more detailed and contain 
product specific rules, and the chapter on customs procedures to provide for shorter release times 
for goods and  expedited shipment (i.e.  goods must be released within 24  hours and express 
consignments within 4  hours). Other changes include targeted improvements to the provisions on 
investor protection, competition, and consumer protection.46 
2.35.   New Zealand and China u pgraded their FTA of 2008 through a protocol signed on 
26 January  2021. The Protocol was ratified by the Parties in February  2022 and is expected to enter 
into force in April  2022. The upgraded FTA will include four new chapters – government procurement, 
competition policy, electronic commerce, and environment and trade – and replace the chapter on 
customs procedures and cooperation with a chapter on customs procedures and trade facilitation 
with broader commitments. The Protocol also expands existing commi tments in rules of origin and 
operational procedures, TBT, and temporary movement of natural persons. It improves market 
 
40 Another expected benefit for New  Zealand would have been the participation of India in the 
Agreement, with whom it did not yet have an FTA; however, India has withdrawn from the negotiations for the 
time being.  
41 WTO Secretariat estimates.  
42 The transition pe riod will be 20  years for Australia, Cambodia, the Lao People's Democratic Republic, 
the Republic of Korea, Myanmar, New  Zealand, the Philippines, and Thailand; 21  years for China and Japan; 
23 years for Indonesia and Malaysia; 25 years for Brunei  Darussal am and Viet  Nam; 35  years for imports by 
the Republic  of Korea from China; and 36  years for China's imports from the Republic  of Korea. For Singapore, 
implementation will be immediate upon the Agreement's entry into force.  
43 MFAT (2020), Regional Comprehen sive Economic Partnership National Interest Analysis . 
44 RCEP, Article  10.18.  
45 Protocol to Amend the Agreement between Singapore and New  Zealand on a Closer Economic 
Partnership, signed on 17  May 2019.  
46 MFAT (2018), Protocol to Amend the Agreement betwee n Singapore and New  Zealand on a Closer 
Economic Partnership and associated instruments: National Interest Analysis , October.  WT/TPR/S/426 /Rev.1  • New Zealand  
- 33 - 
  access for wood and paper products from New  Zealand, as well as services liberalization 
commitments while providing for subsequent nego tiations based on a negative list approach.47 
2.36.   In May  2019, the Parties to the AANZFTA (2010) launched negotiations to upgrade it. 
Negotiations will focus on updating provisions in the following areas: rules of origin, customs 
procedures, services, electron ic commerce, investment, competition, government procurement, and 
trade and sustainable development.48 The Agreement had already been reviewed through a first 
protocol that was signed in November  2014 to, inter alia, streamline the certification procedures  
related to rules of origin. This first protocol entered into force on 1  October  2015 for all Parties, 
except Cambodia and Indonesia for which it entered into force in  2016 and 2019, respectively.  
2.3.3   Unilateral preferential regimes  
2.37.   New Zealand continues to pr ovide unilateral preferences to less and least developed countries 
under the Generalized System of Preferences.49 Under this scheme, about 63% of New  Zealand tariff 
lines are duty -free for less developed countries, while for least developed countries (LDCs ), all of 
New Zealand's tariff lines are duty -free (Table  3.5). Since the previous Review, there were no 
significant changes to this scheme; however, the list of less and least developed countries and the 
preferential rules of origin are currently being re viewed. New  Zealand is also party to SPARTECA, a 
non-reciprocal  trade agreement under which Australia and New Zealand grant duty-free and 
quota -free access for virtually all products originating from PIF countries .50 SPARTECA  will continue 
to apply in para llel with PACER Plus (in force since  2020) (see above ), but in the event of any 
inconsistency between the provisions under PACER Plus and SPARTECA the former will prevail.  
2.38.   Since August  2015 and in accordance with the WTO waiver allowing preferential treatm ent to 
services and services suppliers from LDCs51, New  Zealand grants preferential market access to LDCs 
in 10 additional subsectors of the WTO Services Sectoral Classification.  
2.3.4   Other agreements and arrangements  
2.39.   New Zealand continued to strengthen regional integration through the Asia Pacific Economic 
Cooperation Forum (APEC), and to make progress towards the targets set under the Bogor 
Declaration of  1994.52 Under this declaration, APEC members agreed to achieve free and open trade 
and investment by  2020, through unilateral, regional, and multilateral liberalization.53 While more 
efforts and actions are still needed, the 2020  Final Review of APEC's Progress Towards the Bogor 
Goals recognizes that tariffs have fallen substantially in the r egion and remain low, and that market 
access for services as well as investments conditions have significantly improved. The Final Review 
also notes that more work is needed with respect to, inter alia, non -tariff measures, tariffs in 
agricultural goods, a nd new restrictions in services. In  2020, APEC members further adopted the 
APEC Putrajaya Vision  2040, which builds on the Bogor goals and sets further targets for the region 
for the next 20  years. Under this plan, APEC members aim to achieve an "open, dyn amic, resilient 
and peaceful Asia -Pacific community by  2040" for the prosperity of their inhabitants .54 In 2021, as 
the chair of APEC, New  Zealand led the response to recover from the COVID -19 pandemic, and the 
development of the Aotearoa Plan of Action to implement the Putrajaya Vision  2040. The Aotearoa 
 
47 Protocol to upgrade the Free Trade Agreement between the Government of People's Republic of China 
and the Government of New  Zealand; and New  Zealand Foreign Affairs and Trade, Protocol to Upgrade the 
New Zealand -China Free Trade Agreement. MFAT (2020), National Interest Analysis . 
48 MFAT, Upgrading AANZFTA . Viewed at: https://www.mfat.govt.nz/vn/trade/free -trade-
agreements/free -trade-agreements -in-force/asean -australia -new-zealand -free-trade-agreement -
aanzft a/upgrading -aanzfta/ . 
49 New Zealand's GSP scheme was already in line with the requirements under the WTO Ministerial 
Decision  2015 on "Preferential Rules of Origin for Least Developed Countries" at the time of the decision 
(WTO  document WT/MIN(15)/47, WT/L /917/Add.1, 19  December  2015), so no further changes to its 
GSP scheme were needed.  
50 SPARTECA was notified under the Enabling Clause in  1981 (GATT document L/5100, 
20 February  1981).  
51 WTO documents WT/L/847, 17  December  2011; WT/L/918, 6  December  2013; and S/C/N/813, 
28 July 2015.  
52 APEC (2018), APEC's Bogor Goals Progress Report.  
53 APEC (1994), 1994 Leaders' Declaration , 15 November.  
54 APEC (2020), 2020 Leaders' Declaration, APEC Putrajaya Vision 2040 , 20 November. The Putrajaya 
Vision  2040 is based on three economic drivers: trade and investment; innovation and digitalization; and 
strong, balanced, secure, sustainable, and inclusive growth.  WT/TPR/S/426 /Rev.1  • New Zealand  
- 34 - 
  Plan of Action was launched in November  2021, and se ts out individual and collective actions to 
achieve the APEC Putrajaya Vision  2040.55 
2.40.   In June  2020, New  Zealand, Singapore and Chile signed the Digital Economy Partnership 
Agreement (DEPA), which covers various aspects of digital trade such as technology a nd trade 
facilitation, digital products, data protection, digital identities, artificial intelligence, and participation 
of small and medium enterprises. The Parties expect that DEPA will complement the WTO 
negotiations on e -commerce and continue to evolve . The DEPA entered into force on 7  January  2021 
for New  Zealand and Singapore and on 23  November  2021 for Chile.56 
2.41.   New Zealand was also involved in the Trade in Services Agreement negotiations that comprise 
23 WTO Members. Negotiations have been stalled si nce their last round in December  2016.  
2.4  Foreign Investment Regime  
2.42.   Foreign investment in New  Zealand is governed by the Overseas Investment Act  2005 and 
the Overseas Investment Regulations  2005; both are administered and enforced by the Overseas 
Investment O ffice (OIO) of Toitū Te Whenua Land Information New  Zealand (LINZ). During the 
review period, New  Zealand launched a broad reform of its foreign investment regime to simplify its 
screening mechanism and enhance the coverage of high -risk transactions .57 The reform process, 
which started in  2017, led to the adoption of several legislative changes in August  2018, June  2020, 
and May 2021.58 These changes were originally planned to take place in two stages, in 2018 
and 2020, but due to the COVID -19 pandemic, sev eral measures deemed as urgent were introduced 
in 2020, while others less urgent were delayed until  2021.  
2.4.1   Regulatory framework  
2.43.   Foreign investment is generally permitted without restrictions, although there are some 
exceptions applying notably to investmen ts involving: (i)  assets deemed as sensitive; and (ii)  since 
the reforms of  2020, businesses deemed as strategically important. Under the Overseas Investment 
Act 2005 (and subsequent reforms), foreign investments in sensitive assets are subject to a 
screen ing mechanism that was perceived as overly complex prior to the reform .59 Sensitive assets 
are defined according to three  broad categories:  
• Sensitive land60, which includes non-urban land over five hectares; land adjoining 
sensitive areas, such as the fore shore and seabed; and since the reforms of  2018, 
residential and lifestyle lands61; 
• Significant business assets, which generally comprise investments worth more than 
NZD 100 million62 or accounting for 25% or more of the equity (or control interest) of 
a New  Zealand entity; and  
• Fishing quota, which refers to shares or assets in any entity that owns a fishing quota.63 
 
55 APEC, Annex: Aotearo a Plan of Action . Viewed at: https://www.apec.org/meeting -papers/leaders -
declarations/2021/2021 -leaders -declaration/annex -aotearoa -plan-of-action . 
56 Information provided by the authorities.  
57 The Treasury (2019), Summary: Overseas Investment in New  Zealand . 
58 These reforms were adopted through the Overseas Investment Amendment Act  2018 of 
22 August  2018, the Overseas Investmen t (Urgent Measures) Amendment Act 2020 of 7  June 2020, and the 
Overseas Investment Amendment Act 2021 of 24  May 2021.  These Acts entered into force on 
22 October  2018, 16  June 2020, and 5  July 2021, respectively, with some provisions being implemented 
afterwards.  
59 The Treasury (2019), Summary: Overseas Investment in New  Zealand . 
60 Investments involving sensitive land are not subject to any monetary screening threshold.  
61 The definition of sensitive land was modified in  August  2018 to include residential l and so that 
investments in residential land would also be subject to the screening mechanism.  
62 A higher threshold may apply to overseas investors under New  Zealand's FTAs (see below).  
63 The Overseas Investment Act  2005 incorporates Sections  56-58B of the Fisheries Act  1996.  WT/TPR/S/426 /Rev.1  • New Zealand  
- 35 - 
  2.44.   The screening mechanism seeks to ensure that foreign investments bene fit New  Zealand and 
are in line with its national interests. To this end, any overseas person64 willing to acquire any type 
of sensitive assets in New  Zealand  are required to apply for consent from the OIO and undergo an 
investor test. Investments in sensi tive land and fishing quota are also subject to a benefit test.65 If 
the overseas investor meets the criteria under these tests, t he OIO approves the transaction. 
According to the OIO, about 15% (or NZD  15 billion) of all foreign direct investment into 
New Zealand went through this screening mechanism in  FY2019/20.66 
2.45.   Each test assesses a different aspect of the proposed investment. The investor test is used to 
assess the investor's character (e.g. existence of criminal convictions) and capabilities 
(e.g. prohibitions to holding director positions)67, while under the benefit test, the OIO assesses the 
benefit of the investment to New  Zealand by comparing the likely result of the investment against 
the current situation (i.e.  no investment) based on several criteria .68 Under the reforms of its foreign 
investment regime, New  Zealand simplified both tests . The benefit test was streamlined in  2021 by 
clarifying the comparison assessment and by reducing the number of benefit criteria used in the 
analysis from 21  specific factors to 7  broad categories of factors. The investor test was revised 
in 2020 by removing some criteria and focusing on specific and well -defined factors relating to the 
investor's character and capability.69 In addition to these amendme nts, New  Zealand removed 
screening requirements for low -risk transactions to further simplify its foreign investment regime 
(Box 2.1). Most of these changes took place under the reforms of 2020 and 2021, and a ccording to 
the authorities, the changes have s ignificantly streamlined the screening process of applications and 
reduced the number of transactions requiring consent by about 30%.70 
Box 2.1 Selected reforms simplifying New Zealand's foreign investment regim e  
In 2017, New  Zealand launched a broad set of reforms to simplify its foreign investment regime and enhance 
the coverage of high -risk transactions. These reforms were adopted through the Overseas Investment 
Amendment Act  2018, the Overseas Investment (Ur gent Measures) Amendment Act  2020, and the Overseas 
Investment Amendment Act  2021. The majority of measures seeking to simplify the country's foreign 
investment regime were adopted in 2020 and 2021. Some of the most significant include:  
▪ Removal of categories of sensitive land (2020).  The definition of "sensitive adjoining land" (i.e. land 
that is sensitive because of what it is next to) – a category of "sensitive land" – became narrower in  2020. 
With this reform, the authorities expect to reduce the  number of sensitive land applications by 5% -10%.  
▪ Reduced screening requirements for listed companies and exemptions for non -listed 
companies (2020).  Listed companies that are majority -owned by New  Zealanders and not subject to 
substantial overseas control  are no longer considered overseas persons, and therefore not subject to the 
Overseas Investment Act. Control is substantial if overseas persons holding 10% or more of shares hold 
more than 25% combined. Non -publicly listed companies may also apply for an exemption if they fulfil 
the same criteria.  
▪ Revised investor test (2020) and introduction of a pre -verified status for returning 
investors  (2021).  Overseas investors seeking to acquire sensitive assets must meet the investor test, 
which focuses on the char acter and capability of the investor. The 2020  reforms streamlined the investor 
test by clearly defining the factors the OIO can consider as part of its assessment, and in some cases 
narrowing them to, for example, consider only serious offences or contrav entions (or ongoing proceedings 
for such contraventions or offences).71 In addition, the 2021 reforms allowed "repeat" investors to submit 
a statutory declaration confirming that their circumstances have not changed instead of repeating the 
test. Prior to this change, overseas investors had to meet the investor test for every foreign investment 
application.  
 
64 An overseas person is defined under New  Zealand's legislation as: (i)  an individual who is neither a 
New Zealand citizen nor an ordinarily resident in New  Zealand; (ii)  a company incorporated outside 
New Zealand; (iii)  a company that is more than 25% owned or controlled by an overseas person; or (iv)  a 
New Zealand individual or entity investing on behalf of an overseas person. Additional rules apply to some 
types of entities, such as joint ventures, trusts, managed investment schemes, and listed companies (Overseas 
Investment Act  2005, Article  7). 
65 For investments involving sensitive land for forestry activities, the benefit test can take the form of 
three  different consent options depending on the intended land use (i.e.  special fores try test, general benefit 
test, or standing consent).  
66 LINZ (2020), Annual Report  2019/2020 . 
67 Overseas Investment Act  2005, Article  18A. 
68 Overseas Investment Act  2005, Article  17. 
69 The revised investor test came into effect in March  2021, and the changes to the benefit test in 
November  2021.  
70 This excludes applications to acquire residential land through the "One Home to Live In" pathway.  
71 Prior to the reforms, the test allowed th e OIO to consider any offence, contravention, or any other 
matter reflecting adversely on the relevant person's character.  WT/TPR/S/426 /Rev.1  • New Zealand  
- 36 - 
  ▪ Simplification of the benefit test (2021).  Overseas persons who seek to acquire sensitive land or 
fishing quota must prove that the investment will, or is likely to, benefit New  Zealand. Under this test, 
the OIO compares the current situation to the situation with the proposed investment with respect to 
several benefit criteria. The reform of  2021 clarified the comparison analysis and streamlined the proc ess 
by reducing the number of criteria used for this analysis from 21  specific factors to 7  broad categories of 
factors, providing the OIO with more flexibility when assessing the benefits of an investment. Currently, 
the seven categories used for this ana lysis refer to economic, environmental, and any other consequential 
benefits resulting from the proposed investment, as well as to the effects of the investment on public 
access in the case of land, the protection of historic heritage, government policy, a nd participation by 
New Zealanders.  
▪ Waiver of consent for incremental ownership in significant business assets (2021).  Additional 
foreign investments in sensitive assets are no longer subject to OIO consent, provided the foreign equity 
does not exceed cert ain thresholds (i.e. 25%, 50%, 75%, or up to 100%) in the asset following 
investments increments. Prior to this amendment, overseas investors seeking to increase their 
shareholding had to submit a separate OIO application.  
▪ Introduction of statutory timefra mes for decisions (2021).  New Zealand established in  2021 
statutory time frames for decisions on each type of application for consent under its screening mechanism. 
These time frames are not legally binding, but the OIO is required to report on their compl iance.  
 
Source:  WTO Secretariat based on the Overseas Investment Amendment Acts  2018-2021; and information 
provided by the authorities.  
2.46.   In addition to its screening mechanism, under the reforms of  2020 and in response to the 
COVID -19 pandemic, New Zealand introduced two  other tools to review foreign investments: a 
national interest test and a temporary emergency notification system that was replaced in 2021 by 
another one – the National Security and Public Order (NSPO) notification system . The national 
interest test, introduced in June  2020, can be applied only to transactions already subject to 
screening, and is performed in addition to the other applicable tests under the OIO's general 
screening (e.g.  an investor test, and a benefi ts test if it involves sensitive land or fishing quota). The 
test is mandatory for transactions involving strategically important businesses or a foreign 
government investor, but can also be applied to any other transaction that is ordinarily subject to 
screening at the Minister of Finance's discretion. Such discretion is to be applied rarely, according to 
Ministerial Directives .72 Transactions subject to this test are approved by the Minister of Finance if 
they are not contrary to New  Zealand's national in terest.73 Under the legislation, strategically 
important businesses are businesses with activities related, inter alia, to ports and airports; 
electricity; water; telecommunications; financial institutions, and military and dual -use technology.74 
Transacti ons by foreign governments subject to this test include those leading to an acquisition of 
more than  10% ownership or control interest in the asset . In 2021, this equity threshold was 
increased to more than 25%. Foreign government investors that operate independently from the 
Government can apply for an exemption from this requirement.  
2.47.   The emergency notification system, also adopted in June  2020, provided that all foreign 
investments that were not subject to screening had to be notified to the  OIO if the investors intended 
to: (i)  acquire  more than 25% of the assets or level of control of an existing company; or (ii)  increase 
its existing shareholding (or level of control) up to or beyond certain thresholds (i.e.  50%, 75%, 
or 100%). Once notified, the OIO assessed whether the transaction was contrary to New  Zealand's 
national interest. In June  2021, this notification mechanism was repealed and replaced by the NSPO 
notification system that has a narrower scope than those of the temporary emergency no tification 
system and the national interest test . The NSPO notification system allows the Government to review 
foreign investments that involve strategically important businesses75 but are not subject to screening 
(i.e. consent) under the Overseas Investme nt Act (i.e.  do not involve a sensitive asset). Of the 
foreign investments covered by this mechanism, notification is compulsory only for those relating to 
military or dual -use technology and critical direct suppliers to the New  Zealand Defence Force or 
 
72 Ministerial Directive Letter of 8  December  2021, para.  46, made pursuant to Section  34 of the 
Overseas Investment Act. The Minister ial Directive directs the regulator on how it exercises its functions.  
73 From 1  January to 30  June 2021, 31  consent pathways transactions underwent national interest 
assessments. LINZ (2021), Annual Report  2020/2021 . 
74 Overseas Investment Act  2005, Articl es 6(1) and 20A(1). Article  6(1) includes the definitions of a 
strategically important business and a non -New Zealand government investor.  
75 The categories of strategically important businesses covered by the NSPO notification system are 
broadly the same a s those subject to the national interest test with very few exceptions. The Treasury (2021), 
Guidance Note: Foreign Investment Policy and National Interest Guidance , June.  WT/TPR/S/426 /Rev.1  • New Zealand  
- 37 - 
  security and intelligence agencies.76 For all other covered transactions, notification is voluntary but 
greatly encouraged to guarantee the adequacy of the investment and legal predictability.77 If the 
transaction is not notified, prospective investors risk that their transaction might be assessed at a 
later stage. If notified, the OIO assesses the transaction to determine whether it poses a significant 
risk to the country's national security or public order. If it does, the Minister of Finance is empowered 
to impose conditions on, block, or order disposal to manage those risks. If it does not, it will approve 
the transaction with or without conditions. Like the national interest test, the NSPO notification 
system is to be used only rarely.78 
2.48.   In FY2020/21, the  OIO assessed 176  applications79 under its ordinary screening mechanism, 
and approved 170.80 These figures are slightly higher than those in FY2014/15, when the number 
of assessed and approved applications were 168 and 160, respectively.81 The time -frame f or 
assessing applications varies depending on the type of investment requiring consent, the complexity 
of the assessment, and the amount of information required for the analysis. Processing applications 
can take from 30  working days for assessing investmen ts requiring only an investor test to 
200 working days for assessing investments on fishing quota.82 According to the authorities, 
during  2015-21 an assessment took 45  working days on average.83 
2.49.   In addition to its screening and notification mechanisms, New  Zealand maintains specific 
limitations on foreign investment in key state -owned companies operating in the air transport and 
telecommunications sectors so that these companies remain majority -owned by New  Zealand. In air 
transport services, foreign equity  in New  Zealand's national airline company – Air New  Zealand 
Limited – is limited to 10%, unless the Sovereign decides otherwise. In telecommunications, foreign 
investments exceeding 49.9% in the national telecommunication company  – Chorus 
Limited  – requir es approval. In addition, New  Zealand applies nationality requirements for senior 
managers and boards of directors for both companies.  
2.50.   New Zealand also has specific limitations on foreign investments in various sectors 
(e.g. agriculture and audiovisual) th at have been included in its lists of reservations of 
non-conforming measures under its FTAs.  
2.4.2   Other aspects of New  Zealand's foreign investment regime  
2.51.   New Zealand has not signed any new bilateral investment treaties (BITs) since  2015. It 
currently has four  BITs with Argentina; Chile; China; and Hong  Kong,  China, all concluded 
prior 2000, yet only those with China and Hong  Kong,  China are in force. The authorities indicate 
that there are no plans to bring the BITs with Argentina and with Chile into force, as  the 
Government's position is not to conclude further agreements with a compulsory investor -state 
dispute settlement (ISDS) mechanism.84 
2.52.   While its participation in BITs is limited, New  Zealand has made investment commitments in 
all of its FTAs , except for two (the Trans -Pacific Strategic Economic Partnership, and the 
New Zealand –Hong Kong,  China FTA).85 Under some of the FTAs covering investments, New  Zealand 
committed to a higher screening threshold for investments in significant  business assets. 
 
76 Overseas Investment Act  2005, Article s 20D, 82, 85 and 86. C ritical direct supplier s are defined in 
Article  20D.  
77 OIO, Find Out If You Need to Notify Us of Your Transaction . Viewed at: 
https://www.linz.govt.nz/o verseas -investment/discover/find -out-if-you-need-notify -us-your-transaction . 
78 Ministerial Directive Letter of 8  December  2021, made pursuant to Section  34 of the Overseas 
Investment Act.  
79 Excluding withdrawn applications and "One Home to Live In" applic ations, and including exemptions 
and variations to consent.  
80 OIO, Overseas Investment Office Decision Statistics, 2020/21 . Viewed at: 
https://www.linz.govt.nz/o verseas -investment -office -decision -statistics -202021 .  
81 Information provided by the authorities.  
82 Excluding applications for investments on residential land or property, which can be processed in 
some cases as quickly as 10  working days. OIO, Assessment Timeframes . Viewed at: 
https://www.linz.govt.nz/overseas -investment/discover/our -assessment -process/assessment -
timeframes#how -assess . 
83 Excluding "One Home to Live In" applications.  
84 UNCTAD Investment Policy Hub. Viewed at: https://investmentpolicy.unctad.org/international -
investment -agreements/countries/150/new -zealand .  
85 WTO RTA database. Viewed at: http://rtais.wto.org/UI/PublicMaintainRTAHome.aspx . WT/TPR/S/426 /Rev.1  • New Zealand  
- 38 - 
  For instance, under the New  Zealand -Australia FTA, the threshold is NZD  496 million for Australian 
non-government investors, while under the CPTPP the threshold is NZD  200 million. Following the 
conclusion of the CPTPP and in accordance with New  Zealand's MFN commi tment under its FTAs with 
the Republic  of Korea; China; Chinese  Taipei; and Hong  Kong,  China, the investment threshold 
applicable to those trading partners was increased to NZD  200 million.86 Under RCEP and PACER 
Plus, New  Zealand did not make any addition al commitments in this respect, and maintained the 
NZD 10 million threshold it has under its GATS schedule. Of the four  FTAs signed during 2015-21, 
only the CPTPP87 and the New  Zealand -Republic  of Korea FTA provide for an ISDS mechanism.  
2.53.   New Zealand has 40  double taxation agreements (DTAs) currently in force, including with its 
main economic partners (e.g.  Australia, and China). Its most recent DTA is with Samoa, which was 
signed in July  2015, and entered into force in December of the same  year. This DTA is also the only 
DTA signed by New  Zealand during the review period.88 Since then and according to the authorities, 
negotiations for additional new DTAs have generally been on hold due to various issues, including 
the COVID -19 pandemic.  
2.54.   New Zealand does not provide any financial incentives for investors, but it may provide grants 
depending on the sector of operation or R&D efforts. Such grants are administered by the NZTE  and 
include, inter alia, the Strategic Investment Fund (SIF), which facilitates feasibility studies of 
potential investment projects benefiting New  Zealand. The SIF is a co -funding grant based on a fund 
of NZD  1,204  million, and is available to both domestic and foreign firms looking to establish or 
expan d significant business operations in New  Zealand, as well as to domestic companies considering 
significant overseas investments. The authorities further indicate that to ensure that NZTE generates 
a net economic benefit for New  Zealand, initiatives to assi st firms' outward investment must lead to 
benefits in addition to those that would flow on from firms undertaking the investment without 
assistance.
 
86 The Treasury (2018), Overseas Investment Amendment Regulations: Implementing the 
Comprehensive and Progressive Agreement for Trans -Pacific Partnersh ip, July . 
87 The ISDS mechanism under the CPTPP applies between New  Zealand and the other parties except for 
Australia, Brunei  Darussalam, Malaysia, Peru, and Viet  Nam, with which New  Zealand has signed a side letter 
for the non -application of the ISDS mech anism.  
88 The list of countries participating in DTAs with New  Zealand is available at: 
http://taxpolicy.ird.govt.nz/tax -treaties .  WT/TPR/S/426 /Rev.1  • New Zealand  
- 39 - 
  3  TRADE POLICIES AND PRACTICES BY MEASURE  
3.1  Measures Directly Affecting Imports  
3.1.1   Customs procedures, valuation, and requirements  
3.1.  There have been some significant changes in New  Zealand's customs legislation since its last 
Review. Import procedures, including customs valuation regulations and appeal mechanisms are 
now regulated through the Customs and Excise Act  2018 that replaced the Customs and Excise 
Act 1996.1 The 2018  Act, which came into effect on 1  October  2018, is more transparent and 
provides for a number of new services and better support compliance. It also promotes economic 
growth by making it easier for traders to do business and supports greater information sharing 
between the New  Zealand Customs Service (NZCS) and other agencies. A comparison guide shows 
the difference between the 1996 and 2018  Acts.2 For example, there is now the provision requiring 
the broker or importer to be a fit and proper person. Registration approval can now be suspended 
or revoked.  
3.2.  The NZCS continues to be responsible for customs procedures, security of the national border, 
as well as collection and administration of all duties  and taxes collected at the border.3 It requires 
that customs procedures be undertaken electronically for consignments valued at NZD  1,000 or 
more (import lodgement) for which full details of the goods to be imported, including the 
classification of the g oods under "The Working Tariff Document of New  Zealand", are needed. Import 
entry clearance must be lodged no later than 20  days after the date of importation. In practice, most 
entries are lodged in advance of arrival. Some goods are exempt from import en try requirements, 
including postal articles when no duty is payable. Goods valued at less than NZD  1,000 can be 
entered using a simplified entry request procedure or can be cleared for entry based on electronic 
cargo information, which can include multiple  consignments on a manifest. Duty is not collected on 
imported goods when the value of goods is less than or equal to NZD  1,000. This waiver does not 
apply to tobacco and alcohol beverages.  
3.3.  There are no specific requirements to become an importer in New  Zealand. However, depending 
on the nature of goods, prior to importation, consent may be required from various 
government  agencies such as NZCS, the Ministry for Primary Industries (MPI), the New  Zealand 
Transport Agency, and the Ministry of Health. Food imp orters must register with the MPI.  
3.4.  The NZCS has been working on improving the Trade Single Window (TSW) platform. The TSW 
platform now has additional features for carriers, including import, export, and excise declarations. 
The system now has inward and ou tward cargo reports. The NZCS has also moved into introducing 
TSW electronic delivery notifications.4 In 2020, customs introduced an electronic delivery order 
messaging process where importers, exporters, brokers, and freight forwarders received an 
electr onic message from the NZCS and the MPI advising of delivery. Paper -based delivery orders are 
no longer accepted.  
3.5.  The type and volume of goods crossing the border have changed significantly since the last 
Review in  2015. As a result, the NZ CS conducted a re view of customs goods clearance fees for 
imported and exported goods in  2019. Table  3.1 shows the reviewed fees that have applied since 
1 July 2021, reflecting the costs incurred in clearing goods and risk identification arising from sea 
and air cargo.  
 
1 The new Act is available at: https://www.legislation.govt.nz/act/public/2018/0004/latest/whole.html .  
2 NZCS (2018), Customs and Excise Acts 1996/2018: Comparison Guide . Viewed at: 
https://www.customs.govt.nz/globalassets/documents/ce -2018/comparison -guide.pdf . 
3 Information regarding import documentation, clearance , and requirements is available at: 
https://www.customs.govt.nz/business/import/ . 
4 TSW. Viewed at: www.tsw.govt.nz/prod/external/application/login/app.h tml. WT/TPR/S/426 /Rev.1  • New Zealand  
- 40 - 
  Table 3.1 Goods clearance fees and hourly rate, 2022  
Fees Channel  NZDa 
Import entry transaction fee  Any 33.03  
Inward cargo transaction fee  Air 
Sea 77.00  
520.00  
Export entry transaction fee  Secure exports scheme  
Other exports  3.27 
6.82 
Outward cargo transaction fee  Cargo report export (Air)  
Outward cargo report (Air)  
Cargo report export (Sea)  
Outward cargo report (Sea)  40.00  
14.35  
5.57 
18.59  
Customs rate for officers time 
outside of working hours of 
customs  Fee 399.00 plus 133.00 per hour or 
portion in excess of 3 hours  
a Including Goods and Services Tax (GST).  
Source:  Information provided by the authorities.  
3.6.  According to the World  Bank, in 2020 the time needed to import goods from New Zealand was 
25 hours at a cost of USD  367, compared to an average of 8.5 hours and USD  98.1, respectively, 
for OECD high -income countries.5 The NZCS's measure for 2020/21 for the actual minimum 
clearance percentage of transactions (other than those re ferred for compliance checks) processed 
(including assessment against business rules and intelligence alerts) within 30  minutes is 99.3%. 
Further, the minimum percentage of import transactions that are deemed compliant based on risk 
assessment and proceed without further intervention is 99.1%.6 
3.7.  According to the World Customs Organization (WCO), New  Zealand has a modern and 
well-developed cargo reporting system and customs clearance processes combined with risk 
management. Cargo is reported electronically a nd in advance of arrival. The cargo reporting 
information is electronically risk -assessed and, if accepted, cleared by customs, often before arrival 
of the vessel carrying that cargo. Payment of any duty and tax is by deferred payment account or 
cash.7 
3.8.  New Zealand's risk management system is based on a standardized methodology, jointly 
developed with Australia for identifying and assessing risk. According to the authorities, 1% of import 
transactions are subject to further compliance checks or inspection, and all compliant transactions 
are processed by the NZCS within 30  minutes of completion of an import declaration. The NZCS 
does not maintain an Authorized Economic Operator (AEO) system, as the authorities seek to give 
simplified process to all importers.  
3.9.  New Zealand does not maintain any preshipment inspection regime.  
3.10.   Customs valuation is based on the WTO  Customs Valuation Agreement. Valuation is according 
to the free on board (f.o.b.) value of imported goods.  New Zealand uses the transaction value, or 
the price paid or payable for the goods when sold for export to New  Zealand, for calculating the 
value of imported goods. Where the transaction value is unavailable, identical or similar goods value, 
deductive value, computed value, or residual value may be used.  
3.11.   The Customs and Excise Act 2018 introduced, inter alia, a provision on advanced rulings in 
respect of a particular set of facts or circumstances concerning the valuation of goods for the 
purposes of the tariff.8 The 2018  Act also allows for the entr y of provisional value for imported goods. 
This measure aims to facilitate the declaration of a value for goods at the time of importation in 
situations where this value is subject to change post -entry, as a result of royalty payments or 
transfer pricing. The final customs value must be provided within a time -frame prescribed by 
 
5 World Bank (2020), Doing Business 2020, Economy Profile . Viewed at: 
https://www.doingbusiness.org/content/dam/doingBusiness/country/n/new -zealand/N ZL.pdf . 
6 Information provided by NZCS.  
7 WCO (2019), Guide to Measure the Time Required for the Release of Goods, Version 3, 2018 . 
Viewed  at: http://www.wcoomd.org/en/topics/facilitation/resources/~/media/  
01713916ED2A4BD38DC119C5E64B890D.ashx . 
8 According to the authorities, this measure supports the WTO Agreement on Trade Facilitation 
(non-mandatory provision of Article  3 – Advance Rulings ). WT/TPR/S/426 /Rev.1  • New Zealand  
- 41 - 
  regulations. Duty can be refunded where the final customs value is lower than the provisional value. 
If the amount of duty assessed as payable is not paid by the due date , interest will be charged. A 
guide to applying for a customs valuation ruling on imported goods is available online.9 
3.12.   Aggrieved importers or any other authorized person may appeal to the Customs Appeal 
Authority (CAA), an independent jud icial body administered by the Ministry of Justice. In general, 
the Notice of Appeal must be filed within 20 working days from notification of a decision, and a fee 
of NZD  410 is applicable. With respect to goods that have been seized as forfeit, the Custo ms and 
Excise Act  1996 allows an aggrieved person to appeal to the Chief Executive of Customs in the first 
instance, with a right of appeal to the CAA if not satisfied with the Chief Executive's decision. If 
dissatisfied with the decision of the CAA, a per son may appeal to the High Court. During the review 
period, of the 73 customs appeals (Table  3.2), 3 were taken to the High Court.  
Table 3.2 Customs Appeal Authority statistics, 2015 -20 
 2015  2016  2017  2018  2019  2020  
Number of appeals  18 7 19 12 10 7 
Appeals heard  1 4 7 3 3 0 
Appeals withdrawn  17 3 12 8 6 2 
Appealed to High Court  1 0 0 2 0 0 
Note:  "Withdrawn" covers appeals that were withdrawn, struck out, or invalid.  
Source:  WTO Secretariat, based on data provided by the authorities.  
3.13.   Examples of improvements for business under the 2018 Customs and Excise Act include the 
ability for importers to obtain a binding valuation ruling. Importers can also declare a customs value 
at the ti me of import with the exact value to be disclosed within a time -frame. Business records can 
be stored in the cloud and offshore, and users of trade single windows are required to maintain a 
level of competency to obtain and retain registration.  
3.14.   The 2018 Cu stoms and Excise Act also provides clarity of sanctions and penalties. For 
example, a more proportionate compensatory interest and penalty regime for late and shortfall 
payments of duty replaced the additional duties regime, clarification of the level of p enalties, and 
the circumstance when a penalty will apply (administrative penalties). An infringement notice 
scheme replaced the petty offences regime. Where a business is dissatisfied with an assessment of 
duty or the issuing of a penalty, they have the ri ght to use an internal review process before making 
an appeal to the Customs Appeal Authority.  
3.15.   On 29  September  2015, New  Zealand ratified the Protocol concerning the Agreement on 
Trade Facilitation (TFA). According to the TFA database, New  Zealand fully im plemented the 
Agreement ahead of the original date of 22  February  2020.10 
3.16.   On 29  May 2020, the Customs and Excise (Refunds and Remissions) Amendment 
Regulation s 2020 came into force to assist duty payers  who could not pay duty on time because of 
the COVID -19 pandemic.11 
3.1.2   Rules of origin  
3.17.   New Zealand applies MFN tariff rates to all good s that do not otherwise qualify for preferences 
under the rules of origin established under a preferential arrangement. Under Section  407 of the 
Customs and Excise Act  2018, regulations for both preferential and non -preferential rules of origin 
may be made to prescribe the goods or any type or class of goods that are treated as being the 
produce or manufacture of any country or group of countries. Determination of non -preferential 
origin, in general terms, would include an assessment of as to where the last substantial 
transformation has been carried out.  
 
9 NZCS (2018), Importer Guide: Provisional Values Scheme . Viewed at: 
https://www.customs.govt.nz/globalassets/documents/guides/importer -guide -provisional -values -scheme.pdf . 
10 WTO TFA database. Viewed at: https://tfadatabase.org/members/new -zealand . 
11 NZCS, Customs Duties. Viewed at: https://www.customs.govt.nz/ COVID -19/businesses/customs -
duties . WT/TPR/S/426 /Rev.1  • New Zealand  
- 42 - 
  3.18.   New Zealand's preferential rules of origin and other relevant requirements in respect of the 
Generalised System of Pre ferences (GSP) are set out in Part  6 of the Customs and Excise 
Regulations  1996, as well as in New  Zealand legislation by reference. New  Zealand's current scheme 
already contains provisions embodied in the 2015 WTO Ministerial Decision "Preferential Rules of 
Origin for Least Developed Countries".12 Therefore, during the review period, there was no need to 
make changes to New  Zealand's GSP regime to implement these requirements.  
3.19.   Various origin categories apply in determining whether particular goods qualify as the produce 
or manufacture of a particular preferential country or countries group. "Goods wholly obtained or 
produced in a preferential country" are those based on natural resources obtained in the preferential 
country, and final products made from suc h goods without incorporating any other material 
(e.g. plants, animals, or substances extracted from the country's soil or seabed). This origin category 
is common to all of New  Zealand's trade agreements.  
3.20.   Goods produced in a preferential country (or in the  territory of one or more countries in the 
case of a regional trade agreement (RTA)) entirely from materials that would themselves qualify as 
originating goods may be conferred origin for preferential treatment purposes. For the GSP and for 
goods imported from Canada, the United  Kingdom, and Pacific Islands Forum countries 
(New Zealand's older agreements), the criteria are a specified value content threshold.  
3.21.   For the following free trade agreements, which were concluded after 2015, rules of origin are 
based  on a combination of change in tariff classification, regional value content, and process criteria: 
Korea -New Zealand Free Trade Agreement (2015); Comprehensive and Progressive Agreement for 
Trans -Pacific Partnership (CPTPP) (2018); New  Zealand -Singapore C loser Economic Partnership 
(2020)13; Pacific Agreement on Closer Economic Relations (PACER) Plus (2020); and the Regional 
Comprehensive Economic Partnership (RCEP), which enter ed into force in early 2022.  
3.1.3   Tariffs  
3.22.   New Zealand's tariff implementation rules a nd procedures are contained in a consolidation of 
two legislative pieces, namely the Tariff Act 1988 as amended and the Customs and Excise Act 2018. 
The Tariff of New  Zealand is divided into two parts. Part  I relates to the Standard Tariff and it sets 
out the classification of all international trade and import duty rates. Part  II relates to concessions; 
it outlines the concession categories to reduce or waive a duty that would usually be applied 
under  Part I. 
3.23.   In December 2021, the Tariff (Harmonized System ) Amendment Order 2021 aligned 
New Zealand's tariff nomenclature on HS22, effective 1  January  2022.14 The schedules of product -
specific rules of origin for all of New  Zealand's existing FTAs have been likewise transposed to reflect 
HS22 nomenclature under the Custom and Excise  (Rules of Origin – Harmonised System and Other 
Matters) Amendment Regulations 2021, with the exception of RCEP rules of origin product -specific 
rules, which still reference the HS12 nomenclature.  
3.24.   In 2017, New  Zealand issued a Governme nt decision that tariff levels would remain 
unchanged from their current levels, except where they were reduced through trade agreements.15 
3.25.   New Zealand also issued some tariff decisions in the context of the COVID -19 pandemic, such 
as tariff concessions to  help ensure the unimpeded supply of critical products to New  Zealand during 
COVID -1916, and removal of tariffs on COVID -19-related products as listed under the New  Zealand 
and Singapore Declaration on Trade in Essential Goods for Combating the COVID -19 Pandemic .17 
 
12 WTO document WT/MIN(15)/47 , WT/L/917 /Add.1 , 19 December  2015.  
13 This agreement upgrades the previous agreement between New  Zealand  and Singapore.  
14 NZCS (2016), Tariff (Harmonised System) Amendment Order 2016 . Viewed at:  
https://www.customs.govt.nz/globalassets/document s/legal -documents/tariff -harmonised -system -
amendment -order -2016.pdf . 
15 Office of the Minister of Commerce and Consumer Affairs, Import Tariff Levels After 2017 . Viewed at : 
https://www.mbie.govt.nz/assets/5a90aac8bd/cabinet -paper -import -tariff-levels -after-2017.pdf . 
16 NZCS, Customs Duties. Viewed at: https://www.customs.govt.nz/ COVID -19/businesses/customs -
duties . 
17 New Zealand  Government  (2020) , "COVID -19 Response: New  Zealand and Singapore Launch 
Initiative to Ensure Free Flow of Essential Goods", 15 April. Viewed at:  WT/TPR/S/426 /Rev.1  • New Zealand  
- 43 - 
  3.1.3.1   Applied MFN tariff  
3.26.   The 2021 applied MFN tariff contains 7,927  lines at the HS 8 -digit level (Table  3.3), of which 
99.9% carry ad valorem  duties. Six tariff lines bear specific rates: four  on alcoholic 
beverages  (HS Chapter 22), and two on clothing and footwear (Chapter  63).18 There are 37  "other" 
lines (32  in 2014) applied to parts and components for which the tariff varies subject to the 
machinery, appliance, or equipment they are assigned to. As in the previous Review, there are 
three  different ad valorem  rates: 0%, 5%, and 10% (only applied to non -agricultural products). 
Some 61.1% of tariff lines are duty -free, compared with 53.8% in 20 14 (Chart 3.1).  
3.27.   New Zealand does not maintain tariff quotas.  
Table 3.3 Tariff structure of New  Zealand, 2014 and 2021  
(%, unless otherwise indicated)  
  MFN applied  Final bounda 2014  2021  
Bound tariff lines (% of all tariff lines)  100.0b 100.0b 100.0b 
Simple average rate  2.4 2.2 10.5 
WTO agricultural products  1.7 1.8 7.4 
WTO non -agricultural products  2.5 2.3 11.0 
Duty-free tariff lines (% of all tariff lines)  58.3 61.1 44.2 
Simple average of dutiable lines only  5.7 5.7 18.9 
Tariff quotas (% of all tariff lines)  0.0 0.0 0.0 
Non-ad valorem  tariffs (% of all tariff lines)  0.1 0.1 3.1 
Domestic tariff "peaks" (% of all tariff lines) c 5.6 5.6 5.5 
International tariff "peaks" (% of all tariff lines)d 0.03 0.0 33.4 
Coefficient of variation  1.3 1.4 1.1 
Nuisance applied rates (% of all tariff lines)e 0.03 0.05 0.1 
Total number of tariff lines  7,510  7,927  7,927  
Duty-free rates  4,381  4,845  3,507  
Ad valorem  rates (>0%)  3,091  3,039  4,170  
Specific rates  6 6 10 
Alternate rates  0 0 200 
Otherf 32 37 38 
Unbound  n.a. n.a. 2 
n.a. Not applicable.  
a Bound rates are based on the 2021 tariff schedule. A comparison to the 2021 tariff schedule is done 
to the best possible extent.  
b In 2014 and 2021, two tariff lines are fully unbound (worn clothing). In 2014 and 2021,  24 and 
69 tariff lines, respectively, were only partially bound (motor vehicles). Partially bound rates are 
included in the tariff calculations.  
c Domestic tariff peaks ar e defined as those exceeding three times the overall simple average applied 
rate. 
d International tariff peaks are defined as those exceeding 15%.  
e Nuisance rates are those greater than zero, but less than or equal to 2%.  
f "Other" rates apply to parts an d components, for which the tariff varies subject to the machinery, 
appliance, or equipment they have been designed to.  
Note:  The 2014 and 2021 tariffs are based on the HS12 and HS17 nomenclature, respectively. 
Calculations are based on national tariff li ne level (8 -digit), including AVEs, as available. In 2014, 
out of six  specific rates, four AVEs were provided by the authorities. In 2021, out of six specific 
rates, five  AVEs were calculated based on 2020 import data. Calculations of average final bound 
rates include the ad valorem  component of alternate rates.  
Source:  WTO Secretariat calculations, based on data received by the authorities.  
 
https://www.beehive.govt.nz/release/ COVID -19-response -new-zealand -and-singapore -launch -initiative -
ensure -free-flow-essential . 
18 For 2021, out of the six specific rates, five ad valorem  equivalents (AVEs) were calculated based 
on 2020 import data provided by the authorities. For one specific rate , import data were not available and thus 
it was not possible to calculate its AVE.  WT/TPR/S/426 /Rev.1  • New Zealand  
- 44 - 
  3.28.   Applied MFN tariffs remain relatively low in New  Zealand, with a simple average of 2.2% 
in 2021 (2.4% in 2014). The slight decrease was the result of the reduction in some tariff rates and 
the conversion to HS17. Based on the WTO  definition, the average applied rate for agricultural 
products was 1.8% in 2021 (1.7% in 2014); this slight increase is explained by the c hange of 
nomenclature. For non -agricultural products (WTO definition), the average rate went from 2.5% 
in 2014 to 2.3% in  2021 mainly due to the expansion of the Information Technology Agreement 
(ITA), i.e. the rates of several lines were reduced from 5% i n 2014 to duty -free.19 
Chart 3.1 Distribution of MFN applied tariff rates, 2014 and 2021  
 
Note:  Figures above the bars refer to the percentage of total lines. Figures do not add up to 100% due to 
the exclusion of specific and "other" rates (Table  3.3). 
Source:  WTO Secretariat calculations, based on data provided by the authorities.  
3.29.   By HS section, footwear, textiles, and textiles articles are the most protected industries 
(Chart  3.2). By WTO non -agricul tural definition, the highest simple average applied MFN rate is 
clothing with 9.6% (Table  A3.1).  
3.30.   In aggregate, New  Zealand's tariff shows a positive escalation. Further disaggregation at the 
ISIC 2 -digit level shows positive escalation in all subgroups ex cept for other manufacturing industries 
(Chart  3.3). 
 
19 This decrease could have been a bit more pronounced but wi th the change to the 2017 nomenclature 
the average tariff of transport equipment increased from 3.4% in 2014 to 3.9% due to the splitting of lines.  
53.8
35.6
5.661.1
32.7
5.6
05001,0001,5002,0002,5003,0003,5004,0004,5005,000
Duty free 5% 10%
Note:  Figures above the bars refer to the percentage of total lines.   Figures do not add up to 100% due to the exclusion of
specific and "other" rates (see Table 3.3).   
Source:  WTO Secretariat calculations, based on data provided by the authorities.Number of tariff linesChart 3.1  Distribution of MFN tariff rates, 2014 and 2021
MFN 2014
MFN 2021WT/TPR/S/426 /Rev.1  • New Zealand  
- 45 - 
  Chart 3.2 Average applied MFN and bound tariff rates, by HS section, 2014 and 2021  
 
Note:  Calculations include AVEs for specific rates, as available.  
Sourc e: WTO Secretariat calculations, based on data provided by the authorities.  
Chart 3.3 Tariff escalation by 2 -digit ISIC industry, 2021  
n.a. Not applicable.  
Source:  WTO Secretariat calculations, based on data provided by the authorities.  
3.1.3.2   Bound tariff  
3.31.   On 21  September  2021, the HS12 transposition file of New  Zealand was approved.20 If no 
objection is notified to the Secretariat within three months from the date of circulation of this 
document, the rectifications and modifications to Schedule  XIII – New Zealand will be deemed to be 
approved and will be formally certified on 24  Februa ry 2022. New  Zealand's latest certified binding 
schedule remains in HS07 nomenclature. As of October  2021, New  Zealand's latest bound schedule 
in HS12 and HS17 had yet to be submitted to the WTO for verification. As a result, matching of the 
 
20 WTO document G/MA/TAR/RS/661, 24  November  2021.  
0%5%10%15%20%25%30%
01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21
Calculations include AVEs for specific rates, as available.
WTO Secretariat calculations, based on data provided by the authoritiesChart 3.[NZL]   Average applied MFN and bound tariff rates, by HS section, 2014 and 2021
Note:
Source:01   Live animals & products        
02   Vegetable products
03   Fats & oils      
04   Prepared food, etc.
05   Mineral products
06   Chemicals & products07   Plastic & rubber
08   Hides & skins
09   Wood & articles
10   Pulp, paper, etc.
11   Textiles & articles
12   Footwear, headgear13   Articles of stones
14   Precious stones, etc.
15   Base metals & products
16   Machinery
17   Transport equipment
18   Precision instruments19   Arms & ammunition
20   Miscellaneous manufacturing
21   Works of art, etc.Average applied rate 2014 and 2021 
(2.4% and 2.2%, respectively)Average final bound rate
(10.5%)MFN 2014
MFN 2021Final bound
n.a.n.a.
0%1%2%3%4%5%6%7%8%
Food,
beverages &
tobaccoTextiles &
leatherWood &
furniturePaper printing
& publishingChemicals Non-metallic
mineral
productsBasic metals Fabricated
metal
products &
machineryOther manuf. TotalChart 3.2    Tariff escalation by 2 -digit ISIC industry, 2021
Average applied rate in manufacturing
(2.5%)First stage of processing
Semi-processed
Fully processed
Not applicable.
WTO Secretariat calculations, based on data provided by the authorities.n.a.
Source :WT/TPR/S/426 /Rev.1  • New Zealand  
- 46 - 
  bound and appl ied schedules in HS2017 was not available. According to the authorities, work was 
ongoing in order to complete the process.  
3.32.   For the purpose of this Review, based on WTO Secretariat's transposition to HS17, it appears 
that for two tariff lines the MFN dutie s exceed the bound rates in 2021 (Table  3.4). 
Table 3.4 Tariff lines where the MFN applied rates exceed bound rates, 2021  
HS code  Description  MFN 
applied  Bound  
84797100  Passenger boarding bridges of a kind used in airports  5% 0% 
84797900  Passenger boarding bridges, other than of a kind used in airports  5% 0% 
Source:  WTO Secretariat calculations, based on data provided by the authorities.  
3.33.   The simple average bound tariff rate is 10.5%, considerably higher than the current applied 
MFN average of 2.2% (Table  3.2). Differences between bound and applied rates may provide the 
Government with scope to raise applied tariffs, especially in sensitive sectors, although this has not 
been the case d uring the period under review.  
3.1.3.3   Tariff preferences  
3.34.   New Zealand grants preferential treatment to imports originating in the trading partners with 
which it has closer economic partnerships and free trade agreements. Most imports originating in 
these preferent ial schemes enter duty -free, with few exceptions as indicated in Table  3.3. The 
average preferential tariffs in the agreements negotiated by New  Zealand are all well below the 
average MFN rate. Average preferential tariffs range from 0.0% to 2.2% (Table  3.5). 
Table 3.5 Summary analysis of New  Zealand's preferential tariffs, 2021  
(Number and %)  
 Number of 
preferential 
linesa Total  
 WTO agriculture  
 WTO non -
agriculture  
Average 
(%) Duty -
free 
ratesb 
(%) Average 
(%) Duty -
free 
ratesb 
(%) Average 
(%) Duty -
free 
ratesb 
(%) 
MFN  
2.2 61.1  
1.8 64.6  
2.3 60.6 
Closer Economic 
Partnerships and FTAs:           
Australia  3,082  0.0 100.0   
0.0 100.0   
0.0 100.0  
Canada  2,777  0.3 92.4  
0.4 89.9  
0.3 92.8 
China  3,082  0.0 100.0   
0.0 100.0   
0.0 100.0  
Hong Kong, China  3,082  0.0 100.0   
0.0 100.0   
0.0 100.0  
Korea, Rep. of  3,082  0.0 100.0   
0.0 100.0   
0.0 100.0  
Malaysia  3,082  0.0 100.0   
0.0 100.0   
0.0 100.0  
Singapore  3,082  0.0 100.0   
0.0 100.0   
0.0 100.0  
Chinese  Taipei  3,082  0.0 100.0   
0.0 100.0   
0.0 100.0  
Thailand  3,082  0.0 100.0   
0.0 100.0   
0.0 100.0  
United  Kingdom and 
Northern Ireland  10 2.2 61.2  
1.8 64.6  
2.3 60.7 
ASEAN -Australia -
New Zealand FTA  3,082  0.0 100.0   
0.0 100  
0.0 100 
TPAc 3,082  0.0 100.0   
0.0 100.0   
0.0 100.0  
SPARTECAd 3,082  0.0 100.0   
0.0 100.0   
0.0 100.0  
CPTPPe 3,082  0.1 95.0  
0.0 100.0   
0.1 94.3 
PACER Plusf 3,082  0.0 100.0   
0.0 100.0   
0.0 100.0  
GSP - less developed 
countries  460 2.1 62.8  
1.6 66.1  
2.2 62.2 
GSP - least developed 
countries  3,082  0.0 100.0   
0.0 100.0   
0.0c 100.0  
a Only rates that are lower than the corresponding MFN rate are considered.  
b Duty-free lines as a percentage of total tariff lines.  
c Trans -Pacific Strategic Economic Partnership (Brunei  Darussalam and Chile).  
d South Pacific Regional Trade and Economic Cooperation Agreement.  
e Comprehensive and Progressive Trans -Pacific Partnership Agreement. As of 2021, the FTA is in force 
for Australia, Canada, Japan, Mexico, New Zealand, Singapore, and Viet  Nam.  
f Pacific Agreement on Closer Economic Relations Plus. As of 2021, PACER Plus is in force for 
Australia, Samoa, Kiribati, Tonga, Solomon Islands, New  Zealand, Niue, and Cook Islands.  
Source:  WTO Secretariat calculatio ns, based on data provided by the authorities.  WT/TPR/S/426 /Rev.1  • New Zealand  
- 47 - 
  3.1.3.4   Tariff concessions  
3.35.   New Zealand applies tariff concessions for social/humanitarian, customs facilitation, trade 
policy, and industry assistance purposes, or to comply with international commitments. Of the 
17 categories of tariff concessions, the most frequently used is the duty exemption for goods for 
which suitable alternatives are not available from local producers/manufacturers. Locally produced 
"suitable alternative" goods are only recognized when the domes tic content of the locally produced 
"suitable alternative" good is not less than 25% of its ex -factory cost.21 
3.36.   Additionally, there are specific concessions for shortfalls of manufacturing inputs, certain 
capital equipment, and woven fabrics containing wool  for use in apparel manufacturing. These 
concessions are issued for limited periods and, in some cases, are restricted to specific quantities or 
for the use of specified manufacturers.  
3.37.   Applications for concession are lodged with the NZCS. Approved applicat ions are published in 
the Customs Edition of the New  Zealand Gazette. The NZCS also maintains a consolidated list of 
approvals relating to tariff concessions issued under the general category.  
3.38.   Tariff remissions are also granted for exports under the drawba ck, temporary import, and 
export warehousing schemes (Section  3.2.4).  
3.39.   The tariff concessions scheme was reviewed in October  2018, and it was agreed the tariff 
concession on residential building materials remain in place and be reviewed in 2023.  
3.1.4   Other charg es affecting imports  
3.40.   In addition to tariffs, an import entry transaction fee (IETF) of NZD  33.3 is payable on every 
electronic import lodgement. An MPI biosecurity system entry levy (BSEL) of NZD  26.45 
(GST inclusive) is also payable on every entry on whic h an IETF is payable and is collected by the 
NZCS at the same time as the IETF.  
3.41.   An inward cargo transaction fee (ICTF) of NZD  77.00 is payable on every inward cargo report 
for goods imported by air, and NZD  520.00 for goods imported by sea. An MPI BSEL of NZD 20.56 
(GST inclusive) is payable on every entry on which an ICTF is payable and is collected by NZCS at 
the same time as the IETF.  
3.42.   NZCS also collects: (i)  a health levy on alcohol products on behalf of the Health Promotion 
Agency (HPA) at various rates  in force as from 1  July 2021 (Table  3.6)22; (ii) a synthetic greenhouse 
gas (goods) levy on goods containing hydrofluorocarbons (HFCs) and perfluorocarbons (PFCs) under 
the Climate Change Response Act 2002 and the Climate Change (SGG Levies) Regulations 2013 on 
behalf of the Ministry for the Environment at various rates23; (iii) a heavy engineering research levy 
on imports of heavy steel and welding consumables at rates of NZD  10 per tonne of heavy steel, 
and NZD  0.05 per kilogram of welding c onsumables; and (iv)  an accident compensation motor 
vehicle levy (as per the Accident Compensation (Motor Vehicle) Account Levies Regulations 2017), 
whose rate decreased on 1  July 2017 to NZD  6 cents per litre (down from the existing rate 
of 6.9 cents per litre. 
 
21 Details on tariff concessions are available at NZCS, Tariff Concessions . Viewed at: 
https://www.customs.govt.nz/business/tariffs/tariff -concessions . 
22 NZCS, New Health Promotion Agency (HPA) Levy Rates for Alcohol from 1  July 2021. Viewed at: 
https://www.customs.govt.nz/about -us/news/important -notices/new -health -promotion -agency -hpa-levy-rates-
for-alcohol -from-1-july-2021/ . 
23 Parliamentary Counsel Office , New Zealand  Legislation, Climate Change (Synthetic Greenhouse 
Levies) Regulations 2013 . Viewed at : 
http://www.legislation.govt.nz/regulation/public/2013/0046/latest/DLM5093414.html . WT/TPR/S/426 /Rev.1  • New Zealand  
- 48 - 
  Table 3.6 Health Promotion Agency (HPA) levy rates for alcohol, 2022  
Class (% of alcohol)  Rates (NZD)  
1.15 – 2.50 0.5116 cents per litre  
2.51 – 6.00 1.5058 cents per litre  
6.01 – 9.00 2.7283 cents per litre  
9.01 – 14.00  3.4104 cents per litre  
14.01 – 23.00  5.9181 cents per litre  
more than 23.0  12.7876 cents per litre  
Source:  Data provided by the authorities.  
3.43.   The MPI recovers any additional costs associated with clearing a specific consignment of its 
biosecurity risk through a number of fixed and variable fees. Most of these fees are based on an 
hourly rate of NZD  117.61 (GST inclusive) and are specified in the Biosecurity (Costs) 
Regulations  2010. These services include the testing,  treating, and disposing of goods; inspections 
of offshore craft or shipping containers; and inspections of imported biosecurity risk goods.  
3.1.4.1   Internal taxes  
3.44.   The Goods and Services Tax (GST) is governed by the Goods and Services Tax Act 1985. It is 
a consump tion tax, based on the "destination principle", which requires that goods and services are 
taxed in the country in which they are consumed. Consequently, GST is applied to most imported 
and locally produced and consumed goods and services. The standard rat e of 15% applies to most 
goods and services. Zero -rated supplies include exports of goods and services, certain business -to-
business financial services, and certain supplies of fine metal.  
3.45.   Exemptions are regulated in Section  14 of the 1985 Act. They includ e financial services that 
are not zero -rated (for example, business -to-consumer financial services), the supply of residential 
accommodation in a dwelling, and supplies of donated goods and services by non -profit bodies.  
3.46.   The taxable value of imported goods  is the sum of following amounts:  
• The customs value of the goods, determined in accordance with Schedule  4 of the 
Customs and Excise Act 2018;  
• Any customs duty payable on the goods under the Customs and Excise Act 2018;  
• The costs incurred in transporting t he goods to New  Zealand (including insurance 
costs); and  
• The amount of levy paid or payable on goods under the Climate Change Response 
Act 2002.  
3.47.   During the review period, new laws and regulations were adopted. These are listed on the 
Inland Revenue tax pol icy website, along with links to further information.24 
Excise duties  
3.48.   New Zealand applies excise taxes on imported and locally produced goods made of or 
containing: (i)  alcohol and alcohol products; (ii)  tobacco and tobacco products; and (iii)  fuels such 
as motor spirit, compressed natural gas (CNG), and liquefied petroleum gas (LPG).  
3.49.   The Excise and Excise -equivalent Duties Table in the Working Tariff Document of NZCS has a 
full listing and description of all the excisable goods and excise rates.25 
3.50.   Annual a djustments to the excise and excise -equivalent duty rates on alcohol and tobacco 
products are based on movements in the "Consumers Price Index, All groups, excluding credit 
 
24 Inland Revenue , Tax Policy, Publications . Viewed at: 
https://taxpolicy.ird.govt.nz/publications#sort=%40irsctpdate%20descending&numberOfResults=25 . 
25 NZCS, Working Tariff Document . Viewed at: https://www.customs.govt .nz/business/tariffs/working -
tariff-document/working -tariff-document/ . WT/TPR/S/426 /Rev.1  • New Zealand  
- 49 - 
  services" over the previous 12 -month period to the date of adjustment. The latest a djustments took 
place on 1  July 2021 (alcohol beverages) and 1  January  2021 (tobacco products).26 
3.1.5   Import prohibitions, restrictions, and licensing  
3.51.   Prohibitions and restrictions are now regulated under Customs and Excise Act 2018 , or 
legislation administered by the Government department responsible for particular controls. Some 
prohibitions/restrictions can be waived, subject to prior approval/exemption from relevant 
Government departments or agencies (e.g. MPI, Ministry of Health, Environmental Protection 
Authority, and Ministry of Foreign Affairs and Trade) prior to importation for the 
prohibition/restriction to be waived. Some import prohibitions and restrictions are covered by import 
alerts on the NZCS computerized entry processing system and are subject to electronic compliance 
checks. These relate to, inter alia, agricultural products, food, chemicals, controlled drugs, 
explosives, firearms, hazardous waste. A compr ehensive list of these products and a description of 
related procedures are found on the NZCS website.27 
3.52.   As indicated at the time of its previous Review in 2015, New  Zealand notified all of its 
quantitative restrictions to the WTO in 2014.28 New Zealand up dated its quantitative restriction 
notification in 2021.29 In accordance with Article  7.3 of the Agreement on Import Licensing 
Procedures, New  Zealand's import licensing procedures are also included in the annual questionnaire 
submitted to the Committee on  Import Licensing. No import licensing, prohibitions, or restrictions, 
or licensing are operated on commercial grounds.  
3.53.   The current quantitative restrictions in force are implemented for various purposes, such as 
protection of public morals, compliance with domestic regulations and international conventions, or 
protection of public health. They include agricultural products, chemicals, and endangered species, 
as well as a range of food products.  
3.1.6   Anti-dumping, countervailing, and safeguard meas ures 
3.54.   On 29  May 2017, the Dumping and Countervailing Duties Act 1988 No.  158 was amended to 
provide for a public interest assessment in the application of anti -dumping and countervailing 
duties.30 The name of the Act became the Trade (Anti -dumping and Count ervailing Duties) Act 1988. 
Otherwise, no noticeable changes were made during the review period to New  Zealand's legislation 
and institutional framework on anti -dumping, countervailing, and safeguard measures.  
3.55.   The Trade (Anti -dumping and Countervailing Dut ies) Act 1988 provides the legal basis for 
investigating dumping and subsidization, and for the imposition of anti -dumping and countervailing 
duties in New  Zealand. Its main provisions reflect the WTO's Anti -Dumping Agreement and 
Agreement on Subsidies and  Countervailing Measures. The Trade and International team of the 
Ministry of Business, Innovation and Employment (MBIE) is in charge of the investigation process 
(acceptance of a complaint by New  Zealand producers, initiation of an investigation, and the core 
investigation process).  
3.56.   New Zealand's RTAs also contain anti -dumping and countervailing provisions. Under the 
Australia -New Zealand Closer Economic Relations Trade Agreement (ANZCERTA) protocol, Australia 
and New  Zealand have agreed to dispense with a nti-dumping action in relation to goods produced 
in either country. However, countervailing measures may be taken by either country.  
3.57.   Under the New  Zealand -Singapore Closer Economic Partnership Agreement, New  Zealand and 
Singapore may take anti -dumping and countervailing action against each other. However, in the 
 
26 NZCS, New Health Promotion Agency (HPA) Levy Rates for Alcohol from 1  July 2021. Viewed at: 
https://www.customs.govt.nz/about -us/news/important -notices/new -health -promotion -agency -hpa-levy-rates-
for-alcohol -from-1-july-2021/ . 
27 NZCS, Import Prohibitions and Restrictions . Viewed at: 
https://www.customs.govt.nz/business/import/import -prohibited -and-restricted -imports/prohibitions -and-
restrictions/ . 
28 WTO document G/MA/QR/N/NZL/2, 7  October  2014.  
29 WTO document G/MA/QR/N/NZL/5, 25  March  2021.  
30 Parliamentary Counsel Office , New Zealand  Legislation, Trade (Anti -dumping and Countervailing 
Duties) Act 1988 . Viewed at: https://www.legislation.govt.nz/act/public/1988/0158/latest/DLM137948.html . WT/TPR/S/426 /Rev.1  • New Zealand  
- 50 - 
  case of anti -dumping, this agreement provides for a higher de minimis  dumping margin and a higher 
"negligible imports" volume threshold. In addition, anti -dumping and countervailing duties will cease 
after three years unless reviewed, rather than five years as provided for under WTO rules.  
3.58.   Since the time of the last Review,  New Zealand has entered a number of agreements that 
contain provisions on anti -dumping and countervailing measures. These include the 
New Zealand -Korea FTA, the CPTPP, the RCEP, and PACER Plus.  
3.59.   Many of New  Zealand's trade agreements contain provisions on anti-dumping and 
countervailing measures including transparency, notification, and consultation requirements to be 
followed to ensure greater due process when conducting investigations. Under the trade agreements 
with Pacific Islands Forum countries and wi th Canada, there are a number of notification and 
consultation requirements to be followed, prior to anti -dumping and countervailing actions.  
3.60.   Under PACER Plus, developed country parties shall give special regard to developing country 
Parties when consideri ng and before making a decision on applying anti -dumping measures. Under 
the New  Zealand -Korea Free Trade Agreement, the Parties agreed to the application of the "lesser 
duty rule" for the imposition of anti -dumping duties. Under the RCEP agreement, Partie s agreed to 
a range of notification and consultation provisions. The CPTPP agreement contains an annex of 
best-practice provisions relating to the conduct of investigations.  
3.61.   During the review period, New  Zealand initiated and completed several trade remedi es 
investigations (Table  3.7). In addition, there are two products being investigated as at end -2021: 
aluminium zinc coated steel from the Republic of Korea and Chinese  Taipei; and preserved peaches 
from Spain.31 
Table 3.7 Trade remedy investigations, 2016 -21 
Year Country  Product  Type and duty  
2017 Spain  Preserved peaches  AD review investigation  
Duties ended 23  February  2017 
2017 China  Galvanized steel coil  Subsidy investigation  
No duty applied  
2017 China  Peaches in preserving liquid  Review of AD duties  
Duties ended 17  July 2017 
2018 China  Reinforcing steel bar and coil  Subsidy investigation  
No duty applied  
2018 China and Malaysia  Reinforcing steel bar and coil  Dumping investigation  
No duty applied  
2018 China and Malaysia  Certain hollow steel sections  Dumping investigation  
No duty applied  
2019 China  Certain hollow steel sections  Subsidy investigation  
No duty applied  
2019 China  Galvanized steel coil  Subsidy reconsideration  
No duty applied  
2019 Spain  Preserved peaches  Dumping reconsideration of review  
Reassessed duties applied  
2019 China  Preserved peaches  Dumping reconsideration of review  
No duty applied  
2019 South  Africa  Canned peaches  Review of AD duties  
Reassessed duties applied  
2020 Malaysia  Galvanized wire  Full review of AD duties  
Reassessed duties applied  
 
31 MBIE, Trade Remedy Investigations . Viewed at:  https://www.mbie.govt.nz/business -and-
employment/business/trade -and-tariffs/trade -remedies/trade -remedy -investigations/ . WT/TPR/S/426 /Rev.1  • New Zealand  
- 51 - 
  Year Country  Product  Type and duty  
2021 China and Indonesia  Galvanized wire  Dumping investigation  
Duties applied  
2021 Greece  Canned peaches  Full review of AD duties  
Duties applied  
2021 Belgium and the 
Netherlands  Frozen potato fries and wedges  Dumping investigation  
No duty applied  
AD Anti-dumping.  
Source:  MBIE, Trade Remedy Investigations . Viewed at:  https://www.mbie.govt.nz/business -and-
employment/business/trade -and-tariffs/trade -remedies/trade -remedy -investigations/ . 
3.62.   As of end -December 2021, New  Zealand maintained definitive anti -dumping measures against 
China, Greece, Malaysia, South  Africa, and Spain (Table  3.8). 
Table 3.8 Definitive anti -dumping measures, as of 31  Decem ber 2021  
Country  Product  Date of original imposition  Date duties cease  
China  Galvanized wire  12 March  2021 12 March  2026 
Greece  Canned peaches  9 March  1998 28 April 2026 
Malaysia  Galvanized wire  27 April 2004 17 December  2025 
South  Africa  Canned peaches  2 August  1996 13 March  2025 
Spain  Preserved peachesa 11 August  2011 Under review  
a These duties were terminated in March 2017 upon completion of a five -year "sunset" review but 
later restored as a result of a reconsideration of that sunset review. The reconsideration was 
initiated at  the direction of the High Court of New  Zealand and completed on 27  August  2019. 
Anti-dumping  duties were restored with effect from 28  August  2019.  
Source:  MBIE, Imported Goods Subject to Anti -dumping and Counter vailing Duties . Viewed at: 
https://www.mbie.govt.nz/business -and-employment/busines s/trade -and-tariffs/trade -
remedies/imported -goods -subject -to-anti-dumping -and-countervailing -duties/ . 
3.63.   During the review period, New  Zealand initiated countervailing investigations against China 
regarding the following products: galvanized steel coil; reinforcing steel bar and coil; and hollow 
steel sections.32 New Zealand has not imposed any countervailing duties since its last Review.  
3.1.6.1   Safeguards  
3.64.   The Trade (Safeguard Measures) Act 2014 No.  66 was enacted at the end of 2014 and put in 
place a new safegu ards regime repealing the Temporary Safeguard Authorities Act 1987.  
The 2014 Act requires New  Zealand to apply safeguard measures following WTO rules.  
3.65.   The 2014 Act includes, inter alia, the following measures: authorizes the Commerce and 
Consumer Affairs M inister to impose separate provisional and final safeguard duties to allow 
safeguard action to be taken quickly; criteria for determining whether the imposition of a safeguard 
measure is in the public interest; extends the time -frame for completing a safeg uard investigation 
from 30 to 75 working days; and allows safeguard duties to be refunded if the investigation finds 
the measures were not required.  
3.66.   New Zealand did not impose any safeguard measures or undertake any safeguard 
investigations during the revi ew period.  
3.67.   All of New  Zealand's FTAs contain provisions on global safeguard measures, even if that is 
only to reconfirm or maintain WTO provisions. The ASEAN -Australia -New Zealand Free Trade Area 
(AANZFTA), the New  Zealand -Thailand Closer Economic Partners hip Agreement, the 
New Zealand -China FTA Upgrade, the New  Zealand -Malaysia FTA, the New  Zealand -Korea FTA, the 
RCEP, and the CPTPP include a bilateral transitional safeguard mechanism that allows each Party to 
impose a bilateral transitional safeguard on i mports  from the other Party during the period tariffs 
are being phased out for any particular good and for a limited period. Such a transitional safeguard 
mechanism can be imposed to address situations of serious injury or threats of serious injury to a 
domestic industry caused by increased imports as a result of tariff reductions under the FTA. In 
 
32 See WTO documents G/SCM/N/313/NZL, 1  March  2017; G/SCM/N/334/NZL, 13  Septe mber 2018; 
G/SCM/N/342/NZL, 26  March  2019; and G/SCM/N/349/NZL, 16  October  2019.  WT/TPR/S/426 /Rev.1  • New Zealand  
- 52 - 
  these situations, action can include suspending further tariff reductions or reverting to higher tariffs 
for a certain period.  
3.68.   The Closer Economic Partnership be tween New  Zealand and Hong  Kong,  China and the 
Economic Cooperation Agreement between New  Zealand and Chinese  Taipei, both include a 
provision where, if either Party imposes a WTO safeguards measure, it shall exclude imports from 
the other party if such im ports are not a cause of serious injury or threat thereof. The 
New Zealand -Thailand Closer Economic Partnership Agreement, the New  Zealand -China FTA 
Upgrade, the New  Zealand -Malaysia FTA, the CPTPP, and the New  Zealand -Korea FTA provide that 
a Party applyi ng a global safeguard measure may exclude imports from the other Parties where 
those imports are not cause of serious injury. Under the Australia -New Zealand Closer Economic 
Relations Agreement and the New  Zealand –Singapore Closer Economic Partnership Agre ement, a 
Party imposing a global safeguard measure must exclude imports originating from another Party 
from the measure. PACER Plus allows for a developing country Party to impose a transitional 
safeguard measure, during the transition period only, on impo rts from another Party. Such a 
transitional safeguard mechanism can be imposed to address situations of serious injury or threats 
of serious injury to a domestic industry caused by increased imports as a result of tariff reductions 
under the agreement.  
3.2  Measures Directly Affecting Exports  
3.2.1   Customs procedures and requirements  
3.69.   Customs procedures and requirements regarding exports are now regulated through the 
Customs and Excise Act 2018. All export declarations must be lodged and cleared electronically 
before g oods are loaded for export. Goods valued at less than NZD  1,000 and passenger effects are 
exempt from this requirement. Under the Secure Export Scheme, a voluntary arrangement between 
exporters and the NZCS, the exporters' international supply chain is pro tected against tampering, 
sabotage, smuggling, and other transnational crime. This scheme offers several advantages, such 
as NZCS advice, assistance for unexpected issues, and a reduced export entry transaction fee 
of NZD 12.01 (inclusive of GST) are offer ed to registered exporters.33 
3.70.   According to the World  Bank, in 2020 the time needed to export goods from New  Zealand 
was 37 hours at a cost of USD  337, compared to an average of 12.7  hours and USD  136.8, 
respectively for OECD high -income countries.34 
3.2.2   Taxes,  charges, and levies  
3.71.   New Zealand does not impose export taxes or duties on exports.  
3.72.   New Zealand customs legislation does not contain a framework governing the valuation of 
goods for export purposes.  
3.2.3   Export prohibitions, restrictions, and licensing  
3.73.   Export p rohibitions, restrictions, and licensing are regulated under the Customs and Excise 
Act 2018 or legislation administered by the government department responsible for particular 
controls. New  Zealand imposes restrictions, licensing requirements, controls, and prohibitions on a 
variety of exports mostly for health and safety reasons, or to comply with international obligations. 
Some prohibitions/restrictions can be waive d, subject to prior approval/exemption from the relevant 
government departments or agencies (e.g. the MPI, the Ministry of Health, the Environmental 
Protection Authority, or the Ministry of Foreign Affairs and Trade) prior to exportation. Some export 
prohibitions and restrictions are covered by export alerts on the NZCS computerized entry processing 
system and are subject to electronic compliance checks. These relate to, inter alia, certain 
horticultural products, protected objects, chemicals, controlled drugs, explosives, firearms, and 
hazardous waste. A comprehensive list of these products may be found on the NZCS website. Exports 
of certain goods may be restricted for a range of reasons, such as ensuring New  Zealand's 
 
33 Information regarding export clearance and preferences under New  Zealand 's free trade agreements 
is available at: https://www.customs.govt.nz/search/?query=export+clearance . 
34 World Bank (2020), Doing Business 2020, Economy Profile . Viewed at: 
https://www.doingbusiness.org/content/dam/doingBusiness/country/n/new -zealand/NZL.pdf . WT/TPR/S/426 /Rev.1  • New Zealand  
- 53 - 
  compliance with international conventions (such as the Convention on International Trade in 
Endangered Species  (CITES), the Montreal Protocol, and the Stockholm Convention), conservation 
of goods of cultural status /  tāonga  such as pounamu and t ῡturu, or ensuring that products meet 
requirements under relevant New  Zealand legislation.  
3.74.   The NZCS maintains a list of goods subject to export prohibitions, restrictions, and licensing 
on its website.35 
3.2.4   Export support and promotion  
3.75.   Under the Goods and Services Tax Act 1985 and the Customs and Excise Act 2018, exporters 
continue to be eligible for duty drawback on import duties, excise taxes and, in certain cases GST, 
paid on imported goods.36 Exporters can claim a refund of  duties for: (i)  goods imported into 
New Zealand that are later exported; (ii)  goods manufactured and exported from New  Zealand; 
(iii) imported parts used for goods manufactured in New  Zealand and subsequently exported; and 
(iv) imported materials, except fuel or plant equipment, used in the manufacture of goods in 
New Zealand and exported. Re -import of goods exported under drawback provisions is allowed 
(subject to payment of corresponding customs duty).  
3.76.   The minimum amount of drawback that can be claimed f or commercial goods is NZD  50. There 
is no minimum amount for private exporters.  
3.77.   The amount of duties refunded under the drawback scheme stood at NZD  78 million 
in 2020/21, up from NZD  44 million in 2013/14.  
3.78.   Duties may be waived for temporary imports if th e goods are re -exported or packed for export 
in a customs -controlled area or destroyed within 12  months from the date of importation. In 
addition, duty remissions are available for goods held in customs -controlled areas (export 
warehouses and duty -free sho ps) duly licensed by the NZCS.  
3.79.   Since the previous Review, there has been further investment in New  Zealand's export 
promotion framework. New  Zealand Trade and Enterprise (NZTE) received additional funding and 
resource to support New  Zealand's trade recover y. The NZTE has the responsibility to extend 
companies' international reach by focusing assistance on them and mobilizing capital to support 
business growth. Its activities include strategic advice; facilitating access to networks, research, and 
market int elligence for new export companies; and support for enterprises that already export.37 
The additional resource has enabled a doubling of the number of companies it works with, launching 
a new My NZTE online portal to reach more businesses, and greater supp ort on the ground for 
exporters who are not able to travel.  
3.80.   The International Growth Fund (IGF) of NZD  60 million (as at November  2021) provides 
support to assist firms that have the potential to contribute to New  Zealand's long -term economic 
growth and ac quire key capabilities for business growth, including:  
• gaining knowledge of new markets;  
• business and management capability;  
• ability to innovate and manage the commercialization of research and development; 
and 
 
35 NZCS, Export Prohibitions and Restrictions . Viewed at: 
https://www.customs.govt.nz/business/export/export -prohibitions -and-restrictions . 
36 Goods and Services Tax Act 1985, S ection 12: Imposition of goods and services tax on imports. 
Customs and Excise Act 2018: Subpart 6: Sect ion 107 -108 Excise Duty and excise -equivalent credits; 
Subpart  7 - Assessment, payment and recovery of Duty: Section 142 -150 Refunds, Remissions and Drawback  
of duty; Subpart 8 - Interest and penalties for late or incorrect payments of duty, incorrect refu nds of duty, 
and drawback incorrectly allowed: S ection 165 -173 Remission and Refunds of interest and penalties.  
37 The Treasury , NZECO in Two Minutes . Viewed at: https://exportcredit.treasury.govt.nz/about -
us/nzec -two-minutes . WT/TPR/S/426 /Rev.1  • New Zealand  
- 54 - 
  • ability to access and raise finance for futur e opportunities.  
3.81.   The New  Zealand Story (NZ Story) has built resources to promote the good reputation of 
export products by sharing success stories on some New  Zealand products and services, managing 
the FernMark programme (a country of origin mark), and wo rking with exporters to reflect the values 
and images of New  Zealand in their international marketing. The NZ Story Secretariat is housed 
within NZTE.  
3.2.5   Export finance, insurance, and guarantees  
3.82.   The New  Zealand Export Credit Office (NZECO), under the Treasur y, provides trade credit 
insurance and financial guarantee products that complement those available in the private sector 
for exporters and banks, including against the risk of non -payment arising from defined political or 
commercial risks (up to 100% cove r).38 
3.83.   NZECO charges risk -weighted premiums for its products, and its obligations to third parties 
are guaranteed by the Government. The Government's maximum liability under the scheme is 
NZD 740 million. To be eligible for NZECO's guarantees, an exporter m ust be either a New  Zealand 
registered company, or a subsidiary of a New  Zealand registered company located abroad, and an 
economic benefit to New  Zealand must exist from the transaction. NZECO's solutions can also be 
provided to a New  Zealand firm that is  providing goods or services that are integral to a New  Zealand 
exporter's supply chain.  
3.84.   NZECO's products relate to short (less than one year), and medium/long -term financing 
(between 1 and 14 years). NZECO is not mandated to compete with the private insur ers and can 
only provide this product for non -marketable risks and/or where the insurers lack the capacity. 
During the 2020/21 financial year, NZECO underwrote NZD  174 million of new exposure, in support 
of 68 exporting companies. This support included co -insurance (top -up cover) policies to support 
the private insurers' capacity.  
3.85.   According to the authorities, NZECO follows the OECD Arrangement on export credits and 
pricing, as well as its own Crown -mandated criteria and prudential limits. Pursuant to the 
OECD Arrangement, New  Zealand does not provide officially supported export credits or tied aid for 
unabated coal -fired power plants.  
3.3  Measures Affecting Production and Trade  
3.3.1   Incentives  
3.86.   New Zealand provides various forms of incentives to firms with a strong e mphasis on 
innovation and capacity -building; however, these are not targeted at specific sectors. Incentive 
programmes are delivered through Callaghan Innovation and NZTE. Callaghan Innovation, a 
stand -alone Crown entity established in 2013, is New  Zealand 's innovation agency. It accelerates 
the commercialization of innovation by firms, funds business R&D, advises business on innovation, 
and provides some research and technical services.39 
3.87.   Callaghan Innovation has a mixed delivery model of six products available to New  Zealand 
businesses. According to the authorities, the intent is to build the innovation skills needed to take 
ideas through to valued products and services.40 These products include the following:  
 
38 The Treasury , NZECO in Two Minutes . Viewed at: https://exportcredit.treasury.govt.nz/about -
us/nzec -two-minutes . 
39 Callaghan Innovation. Viewed at: https://www.rd.callaghaninnovation.govt.nz/ . 
40 Callaghan Innovation , Innovation Skills . Viewed at: 
https://www.callaghaninnovation.govt.nz/innovation -skills. WT/TPR/S/426 /Rev.1  • New Zealand  
- 55 - 
  • Lean: a workshop and coaching programme for businesses to help boost 
competitiveness and performance. It can include co -funding of 40% or up to 
NZD 20,000 towards consultant costs for implementation in the first 12  months after 
the workshop.  
• Digital Lean: a capability -building programme similar to Lean that also teaches 
strategies related to new technologies.  
• Beyond IP: a programme that teaches businesses about intellectual property strategy.  
• Technology Incubators: a p rogramme that supports the commercialization of deep tech 
start-ups. Support can include a NZD  750,000 repayable loan.  
• Founder Incubators & Accelerators: Callaghan Innovation supports the operating 
funding to the value of  NZD 2.87 million to a range of org anizations that provide support 
to start -ups. 
• Capital Education:  a virtual introductory workshop on the capital -raising process.  
3.88.   Under the Callaghan Innovation's Business R&D Funding  programme, over NZD  162 million 
was awarded in FY2020/21 to provide an incentive for increasing business investment in R&D with 
a view to accelerating innovation by firms in New  Zealand. The programme is implemented through 
the following scheme s: 
• The R&D Tax Incentive (RDTI), run by MBIE, Callaghan Innovation, and Inland Revenue. 
The RDTI allows businesses to claim 15% tax credit on eligible R&D costs. Loss -making 
businesses can apply to have the tax credit refunded or carried forward. The 
Gover nment will invest NZD  1 billion into the RDTI over the next four years to 
encourage New  Zealand businesses to spend more on R&D.  
• Callaghan Innovation has a range of Project and Student Grants. From FY2022/23, this 
will become a yearly appropriation of NZD  37.5 million, including the following grants:  
• A Getting Started Grant is available for businesses at early stage or new to R&D;  
• An R&D Experience Grant allows businesses to hire a tertiary student to support 
R&D work over their summer break. The business r eceives funding of NZD  8,460 
plus GST for 400  hours of full -time work.  
• An R&D Fellowship Grant provides businesses with advanced research at the PhD 
or master's degree level to help solve an R&D problem; and  
• An R&D Career Grant provides funding for an inte rnship, allowing people with a 
PhD or master's degree to gain six months' experience in helping to solve an R&D 
problem.  
• The R&D Project Grants supports companies with new or weak R&D programmes.  
3.89.   The NZTE, formed in 2003, is New  Zealand's international bus iness development agency.  It 
offers strategic advice, access to networks and influencers, and research and market intelligence, 
and it has the responsibility to extend companies' international reach by assisting them and 
mobilizing capital to support busin ess growth.  
3.90.   The NZTE, through its International Growth Fund (IGF), assists businesses that have the 
potential to contribute to New  Zealand's long -term economic growth by helping them acquire key 
capabilities for business growth, including knowledge of new markets; business and management 
capability; the ability to innovate and manage the commercialization of R&D; and the ability to 
access and raise financing for future opportunities. IGF funding increased from NZD  30 million to WT/TPR/S/426 /Rev.1  • New Zealand  
- 56 - 
  NZD 60 million per year for t he next four years (2022 -26) as part of New  Zealand's response to 
COVID -19 disruptions.41  
3.3.2   Subsidies and other government assistance  
3.91.   In its latest notification to the WTO, New  Zealand reported 3  subsidy schemes (down from 
11 programmes in 2011) that aim to  promote R&D, industry innovation, business capabilities, jobs, 
sustainable economic development, and environmental sustainability (Table  3.9).42 
Table 3.9 Subsidy schemes, 2021  
Subsidy scheme  Purpose  Form of assistance  Duration  Annual budget 
(NZD million)  
Primary Growth 
Partnership (PGP)  Research and 
innovation  Grants for up to 
40% of eligible 
costsa Final contract 
payments by 2026  FY2018/19: 29.83  
FY2019/20: 7.27  
Sustainable Food and 
Fibre Future (SFFF)  Industry 
innovation and 
capability -
building  Government and 
non-government 
investment fund  No fixed duration  FY2018/19: 34.00  
FY2019/20: 25.04  
Provincial Growth Fund 
(PGF)  Jobs, economic 
development, 
environmental 
sustainability  Loans, grants, or 
equity Until 2027/28  FY2018/19: 220.181  
FY2019/20: 439.657  
a Programmes approved before December 2015 were eligible for up to 50% Crown funding.  
Source:  WTO Secretariat, based on WTO document G/SCM/N/372/NZL, 30  June 2021.  
3.92.   The Primary Growth Partnership (PGP) is a government -industry partnership scheme (industry 
contributions must be at least 60% of the total programme funding), administered by the Ministry 
for Primary Industries. Primary, forestry, and food sector industries are eligible to p articipate. The 
PGP has been replaced by the Sustainable Food and Fibre Futures (SFFF) programme.43 
3.93.   The SFFF, introduced in October  2018, is a merger of two pre -existing funds: the PGP and the 
Sustainable Farming Fund. The SFFF, also administered by the Mi nistry for Primary Industries, funds 
transformative programmes through partnerships and grants to create more value, develop 
capabilities, and deliver economic, social, cultural, and environmental benefits.44 
3.94.   The Provincial Growth Fund (PGF), approved by t he Cabinet in December  2017, is 
administered by the MBIE. Local authorities45, government departments, charitable trusts, 
companies, incorporated societies, Māori trusts, and partnerships are eligible for this fund.  
3.3.3   Standards and other technical requiremen ts 
3.3.3.1   Standardization  
3.95.   During the review period, New  Zealand made some institutional reforms to its standards and 
conformance system through the adoption of the Standards and Accreditation Act 2015.46 These 
reforms affected mainly the administrative process fo r the approval of standards, and the 
management structure of the country's accreditation authority (see below). The new Act was 
adopted in October  2015 following a review that started in 2012 seeking to strengthen the 
functioning of the system and reduce i ts costs. The Standards and Accreditation Act 2015 repeals 
and replaces the Standards Act 1988 and Testing Laboratory Registration Act 1972, and has been 
since its adoption the main legal instrument regulating the development and adoption of standards 
and conformity assessments. The Act entered into force on 1  March  2016.  
 
41 NZTE, Exporting with NZTE . Viewed at: https://www.nzte.go vt.nz/page/exporting -with-nzte. 
42 WTO document G/SCM/N/372/NZL, 30  June 2021.  
43 The last year for new applications was 2017/18. Ministry for Primary Industries, Primary Growth 
Partnership (PGP) . Viewed at: https://www.mpi.govt.nz/funding -rural-support/primary -growth -partnerships -
pgps/ . 
44 WTO document G/SCM/N/372/NZL, 30  June 2021.  
45 That is, Regional Council s, District Council s, and Unitary Authorities.  
46 Standards and Accreditation Act 2015, 20  October  2015.  WT/TPR/S/426 /Rev.1  • New Zealand  
- 57 - 
  3.96.   Prior to the adoption of the Standards and Accreditation Act 2015, the New  Zealand Standards 
Council and its operational arm Standards New  Zealand, both Crown entities, were the main 
institutions in charge of the development and adoption of standards in New  Zealand. The 
New Zealand  Standards Council used to oversee their development and adoption, and was 
responsible for approving or rejecting them. Under the new Act, the New Zealand  Standar ds Council  
was dismantled, and most of its functions were transferred to an official appointed as New  Zealand 
Standards Executive in the MBIE. Standards New  Zealand is now the operational arm of the 
New Zealand Standards Executive and a unit within the MBI E. The Standards and Accreditation 
Act 2015 also provides for the establishment of the New  Zealand Standards Approval Board.  
3.97.   The New  Zealand Standards Executive manages and coordinates: (i)  the formation of 
standards development committees; (ii)  the develo pment of new standards by the committees; and 
(iii) the review of existing ones. The New  Zealand Standards Executive also informs Ministers on the 
review or revocation of compulsory standards (i.e. technical regulations) before such a proposal is 
referred to the Standards Approval Board for consideration.47 Standards are compulsory if they are 
cited or incorporated by reference in any Act or regulations. All products – imported or domestically 
produced – must comply with the corresponding technical regulati on to be sold in New  Zealand.  
3.98.   The Standards Approval Board consists of five to seven members appointed by the Minister 
of Commerce and Consumer Affairs. Its main functions are to approve: (i)  the composition of the 
standards development committees; and (ii ) the standards developed by these committees, and 
their amendments. The Standards Approval Board is also responsible for approving the archiving 
and revocation of New  Zealand standards, as well as advising the Minister on priority areas for their 
developm ent and review, or any other related matter.48 With a view of streamlining the 
administration of standards (and their development and review), under the Standards and 
Accreditation Act 2015 the review or revocation of compulsory standards no longer require  
ministerial approval.49 
3.99.   Standards New  Zealand continues to be the country's national standards body, and as such 
is the leading developer of standards and the country's representative at the international level. It 
participates in the International Organization for Standardization (ISO) and the International 
Electrotechnical Commission (IEC). Standards New  Zealand also operates the National Enquiry Point 
under the WTO  Agreement on Technical Barriers to Trade (TBT), and in accordance wit h the relevant 
Memorandum of Understanding (MOU) with the Ministry of Foreign Affairs and Trade (MFAT). 
Standards New  Zealand is financially independent and operates on a cost recovery basis.  
3.100.   Standards New  Zealand manages the development of New  Zealand sta ndards, and of joint 
Australian -New Zealand standards. To promote harmonization with international standards, the 
authorities indicate that Standards New  Zealand prompts stakeholders, including regulators, to 
adopt existing standards (identical or with mod ifications), where appropriate and possible, unless a 
valid reason can be substantiated for a new standard. In 2021, the total number of standards in 
New Zealand's catalogue, which comprises New  Zealand standards and joint Australia -New Zealand 
standards, was 2,670, down from 3,205 in 201450, following the withdrawal of older standards that 
were not replaced with new ones.51 The majority of standards in New  Zealand's catalogue are 
developed in partnership with Standards Australia (87% of the total number of  standards in 2021) 
and are not cited in primary or secondary legislation, and are therefore voluntary (69%). About half 
of standards in New  Zealand's catalogue are equivalent to international standards (Table  3.10).  
 
47 Standards and Accreditation Act 2015, Articles 7, 10 , and 15.   
48 Standards and Accreditation Act 2015, Articles 11 and 12.  
49 Standards and Accreditation Act 2015, Article  10; and Stand ards Act 1988, Article  10. 
50 WTO document WT/TPR/S/316 /Rev.1,  12 October  2015.  
51 Regarding the withdrawal of older standards , the authorities  indicate that they encourage taking up 
existing standards, where possible.  WT/TPR/S/426 /Rev.1  • New Zealand  
- 58 - 
  Table 3.10 New Zealand standards, 2015 -21 
 2015  2016  2017  2018  2019  2020  2021  
Total number of standards 2,966 3,004  3,049  2,724  2,762  2,773  2,670  
- of which technical regulations  1,263  1,301  1,335  852 815 807 828 
- share developed by New Zealand  13% 12% 12% 13% 13% 13% 13% 
- share developed jointly by 
Australia and New  Zealand  87% 88% 88% 
 87% 87% 87% 87% 
- share of total equivalent to ISO 
standards  16% 16% 17% 17% 16% 17% 22% 
- share of total equivalent to IEC 
standards  21% 22% 19% 20% 21% 21% 27% 
- share of total equivalent to ISO 
and IEC (ISO/IEC)  9% 9% 9% 5% 5% 5% 5% 
- share of total for which no 
internationally equivalent 
standard available  54% 53% 55% 58% 58% 57% 50% 
Notes:  Technical regulations are defined as standards cited in the legislation or regulations, and so the 
number of technical regulations refers to the number of cited standards in the Standards 
New Zealand catalogue.  
 The percentage of standards for which no internationally equivalent standard is a vailable refers to 
the percentage of all New  Zealand or joint Australia -New Zealand standards in New  Zealand's 
catalogue that are not based on ISO, IEC, or ISO -IEC standards.  
Source:  Information provided by Standards New  Zealand.  
3.101.   Except for the approval pr ocess, which is now the responsibility of the Standards Approval 
Board, the procedure for preparing, issuing, or revising standards or technical regulations has not 
changed substantially since the previous Review (Box  3.1). During the development phase, dr aft 
standards are subject to a public consultation period of approximately eight weeks, depending on 
the scope of the project. If the consultation leads to substantial changes to the draft, a second round 
of consultations for the revised draft may take pla ce. Draft standards that meet the criteria under 
the Act are taken before the Standards Approval Board for approval. Upon approval, they are 
published online as new or revised standards. Standards New  Zealand has also developed a review 
process for aged st andards, under which standards that are at least 10  years old are reviewed 
against a set of additional criteria and then proposed for withdrawal if deemed necessary.52 All 
withdrawal proposals are subject to public consultation with stakeholders to determi ne whether they 
need to be withdrawn, reconfirmed, or revised.  
Box 3.1 Development process of New  Zealand standards  
Standards New  Zealand manages the development of New  Zealand standards (and joint 
Australia -New Zealand standards in collaboration with Australia Standards) when no international standards 
are available or suitable. The preparation of a New  Zealand standard follows six stages:  
• Initiation: A project to develop or revise a standard is com missioned by stakeholders, in general 
an industry association or a regulator/government department to Standards New  Zealand.  
• Committee formation: Following approval by the Standards Approval Board, a committee of 
technical experts nominated by sector repre sentatives and regulators is established to draft the 
standard.  
• Standard preparation: The Committee drafts the standard.  
• Public consultation: The proposed standard is subject to public consultation for a period of 
approximately eight weeks, depending on th e scope of the project. If the number of comments is 
significant and they result in substantial changes, a second round of consultation on the revised 
draft may take place.  
• Completion of drafting and approval by the Committee: The Committee completes the f inal version 
of the standard and must approved it by consensus.  
• Approval by the Standards Approval Board and publication by Standards New  Zealand: The 
New Zealand Standards Executive takes the draft standard before the Standards Approval Board 
for approval . Following its approval, Standards New  Zealand publishes the standard.  
According to the authorities, the duration of the preparation process of a New  Zealand standard can vary from 
three  months to several years depending on the complexity of the project.  
Source:  Standards New  Zealand.  
 
52 The authorities further indicate that  this review process does not imply that standards that are at 
least 10 years old are withdrawn by default.  WT/TPR/S/426 /Rev.1  • New Zealand  
- 59 - 
  3.102.   From 1  January  2015 to 31  January  2022, New  Zealand made 39  TBT notifications 
(i.e. regular notifications, excluding revisions and addendums) of which all except for 2  relate to 
proposed technical regulations or proposed con formity assessment procedures.53 These measures 
covered, inter alia, food, alcoholic beverages, plastics, chemicals, and construction materials, and 
they were based on, inter alia, health, safety, quality, or environmental considerations. The other 
two not ifications were about the adoption of emergency/urgency technical regulations.54 
3.103.   During the same period, WTO Members raised one TBT specific trade concern (STC) 
against  New Zealand (May  2020) concerning the proposal of a new label requirement under which 
labels for packed meat and cured pork must specify where the animal was raised (see below). This 
was the only TBT STC against New  Zealand during this period. New  Zealand raised  21 new TBT STCs 
against other WTO members in the WTO Committee on Technic al Barriers to Trade.55 
3.3.3.2   Conformance system  
3.104.   The MBIE is responsible for overseeing New  Zealand's conformance infrastructure and 
providing advice to the Government on related policy and regulations. Authorities comprising 
New Zealand's conformance infrastructure are two accreditation bodies (International Accreditation 
New Zealand and the Joint Accreditation System of Australia and New  Zealand), a legal metrology 
authority (Trading Standards), and a national metrology institute (the Measurement Stan dards 
Laboratory) (Table  A3.4). 
• International Accreditation New  Zealand (IANZ) is the country's accreditation body for 
testing and calibration laboratories, and inspection bodies. Once accredited, testing and 
calibration laboratories and inspection bodies are subject to subsequent reassessments 
by the IANZ to ensure compliance with the accreditation status. The IANZ charges fees 
for the services it renders, and is a full member (i.e. signatory to the corresponding 
Mutual Recognition Arrangement (MRA) and su bject to peer evaluation) of the 
International Laboratory Accreditation Co -operation  (ILAC) and the Asia Pacific 
Accreditation Cooperation (APAC). Based on the ILAC MRA, conformity assessment 
results from IANZ -accredited laboratories and inspection bodies are recognized in 
103 countries.56 
• The Joint Accreditation System of Australia and New  Zealand (JAS -ANZ) provides 
accreditation for certification and inspection bodies. Once accredited, relevant bodies 
are subject to subsequent reassessments to ensure comp liance with the accreditation 
status. JAS -ANZ charges fees for the services it renders. JAS -ANZ is a full member of 
the International Accreditation Forum (IAF), the ILAC, and APAC.57 
• Trading Standards under the MBIE is New  Zealand's legal metrology authori ty. It is 
responsible for administering and enforcing the Weights and Measures Act 1987, and 
monitoring the quality of retail fuel. Through Trading Standards, New  Zealand is a 
member of the International Organisation of Legal Metrology, and Asia Pacific Le gal 
Metrology Forum, and it maintains with Australia a Trade Measurement Advisory 
Committee that focuses on trade measurement issues.  
• The Measurement Standards Laboratory (MSL) is New  Zealand's national metrology 
institute, and is part of Callaghan Innovat ion, the country's innovation agency. Its main 
responsibility is to ensure that the country's units of measurement are consistent with 
the International System of Units. New  Zealand is party to the  Metre Convention, 
establishing the International Bureau of  Weights and Measures (BIPM), and signatory 
through the MSL to the International Committee for Weights and Measures (CIPM) MRA, 
an arrangement for the international mutual recognition of national measurement 
standards and of calibration certificates issued  by national metrology institutes framed 
 
53 Notifications were made under Article s 2.9.2 and 5.6.2 of the TBT  Agreement . WTO TBT Information 
Management System. Viewed at: http://tbtims.wto.org/ .  
54 Notifications were made under Article  2.10.1 of the TBT  Agreement . 
55 TBT Information Management System. Viewed at: http://tbtims.wto.org/ .  
56 Accreditation Council, 2020 Annual Report.  
57 JAS-ANZ (2021), Annual Report 2020 -21, 27 September.  WT/TPR/S/426 /Rev.1  • New Zealand  
- 60 - 
  by the CIPM. The MSL is also a member of the  Asia-Pacific Metrology Programme, which 
brings together all the national metrology institutes in the region.  
3.105.   During the review period, New  Zealand's conformance system wa s not subject to any major 
change, except for some institutional and administrative amendments made to the Testing 
Laboratory Registration Council managing IANZ. In 2015, New  Zealand repealed the Testing 
Laboratory Registration Act 1972, which established the Testing Laboratory Registration Council and 
incorporated its provisions into the Standards and Accreditation Act 2015. Under the new Act, 
New Zealand renamed the Testing Laboratory Registration Council to Accreditation Council, clarified 
its functions,  amended the composition of the council, and provided that all its members be 
appointed only by the Minister of Commerce and Consumer Affairs.58 The Accreditation Council 
continues to conduct its operations through IANZ, and to own Telarc Limited (a Certif ication body), 
which provides certification services.59 
3.106.   In 2018, the MBIE also launched a review to assess the functioning of New  Zealand's 
conformance system. Based on this review, the MBIE developed a strategy that identifies actions to 
enhance the confo rmance system for the period 2019 -22. The MBIE is responsible for implementing 
the strategy in collaboration with New  Zealand's standard and conformance infrastructure 
authorities, and for monitoring its progress. As part of the strategy's actions, the MBI E strengthened 
the role of the existing Standards, Accreditation and Metrology Group (SAM) to support the 
implementation of the strategy. The SAM is convened by the MBIE and meets on a quarterly basis. 
Its purpose is to enhance information sharing, collabo ration, and coordination between agencies 
responsible for New  Zealand's standards and conformance infrastructure.60 
3.107.   In the area of international regulatory cooperation, New  Zealand and Australia have signed 
the Trans -Tasman Mutual Recognition Arrangement ( TTMRA), which is, according to the authorities, 
one of New  Zealand's most comprehensive economic integration arrangements. The TTMRA provides 
for the recognition of equivalence of technical regulations so that any good that can be legally sold 
in Australia  can also be sold in New  Zealand (and vice versa) without further technical regulation 
requirements, and with very limited exceptions (e.g. radio communications regulations). The TTMRA 
also covers professional qualifications and provides for the mutual rec ognition of occupational 
registrations.  
3.108.   In addition to the TTMRA, New  Zealand had, as at January  2022, 10  mutual recognition 
agreements or arrangements (MRAs)61 with key trading partners covering selected products, 8 of 
which were for the acceptance of con formity assessment results, and 2 for certification (Box  3.2).62 
Of these instruments, three were signed during the review period: one with China; one with the 
Separate  Customs Territory of Taiwan, Penghu, Kinmen and Matsu ( Chinese  Taipei); and one with 
the United  Kingdom. The MRA with the United  Kingdom was signed in 2019 following its withdrawal 
from the European  Union, and has the same coverage as the one with the European  Union, 
i.e. electromagnetic compatibility, low voltage equipment, machinery, medic inal products and 
devices, pressure equipment, and telecommunications terminal equipment. The MRAs with China 
and Chinese  Taipei were signed in 2016 and 2020, respectively, and cover the recognition of the 
certification of organic products. As at January  2022, the former was not yet operational but its 
implementation was ongoing.  
3.109.   New Zealand also unilaterally recognizes certification of certain products issued by other 
jurisdictions, such as certification for gas appliances issued by certain European, North  American, 
and Australian certification bodies.63 
 
58 Standards and Accreditation Act 2015, Articles 33 -36. 
59 Since 30  August  2017, Telarc Limited is fully owned by the Accreditation Council. Prior to this dat e, 
the Accreditation Council owned 75% of the shares of Telarc Limited.  
60 MBIE (2019) , Conformance System Strategy: A Common Direction and Goals for Enhancing the 
Conformance System . 
61 Including the APEC Mutual Recognition Arrangement on Conformity Assessm ent of Foods and Food 
Product s, which is a framework agreement  that, as at January 2022, did not contain any product -specific  
commitments.  
62 As at January 2022, New  Zealand had notified one MRA (i.e. with the European  Union) under 
Article  10.7 of  the TBT  Agreement (WTO document G/TBT/10.7/N/27, 14  October  1999).  
63 MBIE (2018) , A Guide to New  Zealand 's Standards and Conformance System , March.  WT/TPR/S/426 /Rev.1  • New Zealand  
- 61 - 
  Box 3.2 Conformity assessment s and related MRAs signed by New  Zealand, 2022  
APEC economies: New Zealand has three MRAs under APEC:  
• the APEC Electrical and Electronic Equipment Mutual Recognition Arrangement, which provides for 
the mutual recognition of conformity assessment results for electric and electronic equipment;  
• the APEC Mutual Recognition Arrangement for Conformity Assessment of Telecommunications 
Equipment, which provides for the recognition and acceptance of test results and/or authorizations 
for relevant equipment; and  
• the APEC Mutual Recognition Arrangement on Conformity Assessment of Foods and Food Products, 
which is a framework agreement for th e recognition of conformity assessment results for food 
products.64 
China: New Zealand has two MRS with China:  
• one providing for the mutual recognition of conformity assessment results for electric and electronic 
equipment and components; and  
• one providin g for mutual recognition of the certification of organic products.  
Chinese  Taipei: New Zealand has two MRAs with Chinese  Taipei:  
• one providing for the mutual recognition of conformity assessment results for electric and electronic 
equipment and components, including electrical safety and electromagnetic compatibility; and  
• one providing for mutual recognition of the certification of organic products.  
European  Union: The MRA with the European  Union provides for mutual recognition of conformity 
assessment results for electromagnetic compatibility, low voltage equipment, machinery, medicinal products 
and devices, pressure equipment, and telecommunications terminal equipment.  
Singapore: The MRA with Singapore provides for mutual recognition of confor mity assessment results for 
electric and electronic equipment, and components.  
United  Kingdom: The MRA with the United  Kingdom provides for the mutual recognition of conformity 
assessment results for electromagnetic compatibility, low voltage equipment, m achinery, medicinal products 
and devices, pressure equipment, and telecommunications terminal equipment.  
Source:  WTO Secretariat based on information provided by the authorities.  
3.3.3.3   Labelling and marking  
3.110.   New Zealand prohibits the importation of all goods bea ring false information or including 
trademarks or signs likely to mislead or deceive consumers.65 All goods sold are subject to quantity 
labelling requirements and must use one of the units of New  Zealand's metric system when marking 
their net weight or me asure.66 
3.111.   Imported and locally produced food must meet label requirements under the Food Act  2014 
and the Australia -New Zealand Food Standards Code (Section  3.3.4). Information on food labels 
must in general include a date marking for sale, a lot identification, a New  Zealand or Australian 
name and business address, a description of the good, an ingredients list and their content (in 
percentage), a nutrition information panel, use and storage directions, allergens declarations, and 
warning and advi sory statements. A number of food products are subject to specific requirements 
including genetically modified food, food for infants, fish, alcoholic drinks (including wine), irradiated 
food, and food containing hemp seeds.67 
3.112.   New Zealand also has six Cons umer Information Standards (CIS) Regulations with labelling 
information requirements for clothing (care, country of origin, and fibre content), used motor 
 
64 The authorities further indicate that as of January 2022 New  Zealand  has not negotiated any sectoral 
or product -specific arrangement under this APEC MRA.  
65 Unfair Trading Act 1986, Articles 16 and 26.  
66 Weights and Measure Regulations 1999, Part 5.  
67 Australia -New Zealand  Food Standards Code, Part 1.2 (Standards 1.2.1 to 1.2.10) and Part 1.4 
(Standard 1.4.4).  WT/TPR/S/426 /Rev.1  • New Zealand  
- 62 - 
  vehicles, water efficiency, and the origin of food.68 The CIS Regulations for water efficiency and fo od 
origin were adopted during the review period, in 2017 and 2021, respectively. The CIS Regulations 
for water efficiency applies to water -using equipment (e.g. washing machines and dishwashers), 
and requires labels to include information on their water co nsumption. The CIS Regulations on the 
origin of food (both fresh and frozen) require that labels include the country of origin for fruit and 
vegetables, meat and cured pork, and fish and seafood. The proposed draft of these regulations was 
notified to the WTO in December  201969 and was the object of a TBT STC in the  WTO TBT Committee 
in May  2020, which the authorities indicate was satisfactorily addressed.70 The CIS Regulations on 
the origin of food were to enter into force on 12  November  2021 for fresh food but were postponed 
to 12  February  2022 to give businesses more time to adjust. For frozen foods the entry into force 
has not changed and remains 12  May 2023. 
3.113.   In March  2018, New  Zealand also put in place a standardized packaging regime for tobacco. 
Under this regime, New  Zealand requires that all tobacco products be sold in  dark brown/green 
coloured packaging (same as in Australia, the United  Kingdom, Irela nd, and France), with no 
company logos and the same font for all brands. New pictures and health warning must cover at 
least 75% of the front of the package, and the entire back .71 Full implementation of the regime 
started on 6  June 2018. In 2021, New  Zealand held public consultations on further proposals, 
including proposed technical regulations, aiming at reducing smoking and tobacco availability to 
minimal levels by 2025.72 
3.3.4   Sanitary and phytosanitary requirements  
3.3.4.1   General framework  
3.114.   New Zealand's sanitary and phytosanitary (SPS) framework is regulated through a large 
body of statutes, which primarily includes the Biosecurity Act  1993, the Agricultural Compounds and 
Veterinary Medicines Act  1997, the Animal Products Act  1999, the Dairy Industry Restructuring  
Act 2001, the Wine Act  2003, and the Food Act  2014. While these primary SPS -related laws 
remained in force during the review period, the Food Safety Law Reform Act  2018 (FSLR Act) 
amended the Animal Products Act  1999, the Food Act  2014, and the Wine Act  2003 to streamline 
the content and format of certain guiding documents, such as Regulations, Notices, and Codes issued 
under the three Acts. There are ongoing consultations to redesign regulations and notices under the 
Animal Products Act  1999 and the Wine Act 2003, with a view to further streamlining administrative 
procedures.73 The authorities indicate that the redesigned animal products and wine regulations are 
expected to come into effect from July  2022. To help develop a more consistent and fair approac h 
to enforcement across the food safety system, the amendment also provides for extending some 
enforcement tools that initially existed in the Food Act (improvement notices, compliance orders, 
and penalties based on commercial gain) to the Animal Products Act and the Wine Act.  
3.115.   Among other changes brought about by the FSLR Act, it allows for use of automated 
electronic systems for issuing export certificates for food, plant, and animal products.74 In 
March  2020, regulations were issued requiring businesses t o provide hazard identification and 
management information to the Ministry for Primary Industries (MPI) when applying to register a 
risk-based measure. The Act also enables the adoption of regulations to enhance traceability 
 
68 Consumer Information Standards (Care Labelling) Regulations 2000, Consumer Information 
Standards (Country of Origin (Clothing and Footwear) La belling) Regulations 1992, Consumer Information 
Standards (Fibre Content Labelling) Regulations 2000, Consumer Information Standards (Used Motor Vehicles) 
Regulations 2008, Consumer Information Standards (Water Efficiency) Regulations 2017, Consumer 
Inform ation Standards (Origin of Food) Regulations 2021.  
69 WTO document G/TBT/N/NZL/93, 9  December  2019.  
70 WTO document G/TBT/M/81, 26  June 2020.  
71 The Smoke -free Environments (Tobacco Standardised Packaging) Amendment Act  2016, the 
Smoke -free Environments Regulations 2017, and their amendments.  
72 Information provided by the authorities and viewed at: 
https://www.health.govt.nz/publication/proposals -smokefree -aotearoa -2025-action -plan.  
73 MPI, Redesign of Animal Products and Wine Regulations and Notices . Viewed at: 
https://www.mpi.govt.nz/legal/legislation -standards -and-reviews/redesign -of-animal -products -and-wine-
regulations -and-notices/ . 
74 The MPI maintains expo rt certification systems for food, plant, and animal products whereby it 
authorizes approved organizations to carry out certification services on its behalf . WT/TPR/S/426 /Rev.1  • New Zealand  
- 63 - 
  obligations and set recall requ irements, including for annual simulated recalls.75 The authorities 
indicate that in  December  2021, traceability and recall guiding documents were undergoing review 
to align with new trace and recall regulations expected to be issued in 2022. In this conte xt, 
clarification has been provided through changes to primary legislation, regulations, and notices on 
the role of recognized agencies and recognized persons, as well as businesses subject to verification. 
Further, the role and responsibilities of the MPI  were expanded to improve food safety responses, 
including contingency planning and being able to request information from third parties to inform 
risk assessments.  
3.116.   A National Policy Direction for Pest Management (NPD) was adopted and implemented 
in 2015. It provides for the development of instruments and measures that prevent, reduce, or 
eliminate the adverse effects of harmful organisms on the economy, the environment, and human 
health. The NPD also determines the framework for a balanced distribution of costs associated with 
the instruments and measures.76 Specifically, it aims to improve the quality and consistency of pest 
and pathway management plans. It sets out several requirements related to the descriptions of 
outcomes and programmes, costs -benefit analysis, and cost allocation between various 
stakeholders. The authorities note that this has resulted in a substantial improvement in the 
alignment and consistency of Regional Pest Management Plans between regions, and with National 
Pest Management Plans . It has also guided the development of the Fiordland Regional Marine 
Pathway Management Plan and the National Pathway Management Plan for the kiwifruit industry. 
The Minister for Biosecurity has overall responsibility for national pest or pathway manageme nt 
plans.  
3.117.   The MPI, through its various units, has the lead role in biosecurity protection, including to 
prevent outbreaks of pests and diseases in New  Zealand. Biosecurity New  Zealand was established 
in 2018 ( Section  4.1). Its purpose is to prevent the spr ead of harmful organisms. It is in charge of 
managing compliance at the border as well as preparing for, and responding to, any biosecurity 
incursions that may occur. SPS New  Zealand, which is also part of the MPI, is the Notification 
Authority and Nationa l Enquiry Point for the purposes of the WTO Agreement on the Application of 
Sanitary and Phytosanitary Measures  (SPS Agreement). From January  2015 to February  2022, 
New Zealand notified 172  new SPS measures to the WTO (regular and emergency measures), of 
which 45 were emergency measures affecting either all of its trading partners or geared towards 
specific Members. In 2018, specific trade concerns were raised with respect to New  Zealand's draft 
import health standard for vehicles, machinery, and equipment in the SPS Committee . The 
authorities indicate that the trade issues raised on the measures for Brown Marmorated Stink Bug 
(BMSB) on used vehicles imported into New  Zealand were resolved in late  2018, and that the 
measures remain in place and continue to m anage the risk of BMSB.  
3.118.   The MPI has an established structure of charges for services it provides to individuals and 
companies in relation to, inter alia, biosecurity inspections and standards development.77 This also 
covers charges on importers for biosecurity clearance of imported goods and other related activities 
at the border. Fees and charges are regularly reviewed in consultation with those affected. During 
the review period, amendments were made to va rious regulations, including measures to:  
• introduce levies for recovering border processing costs in the context of the 
Biosecurity  Act78; 
• exempt specified substances from registration; and set fees, charges, and levies for 
application assessment in the co ntext of the Agricultural Compounds and Veterinary 
Medicines Act; and  
 
75 MPI, Work to Strengthen Food Recalls and Risk -based Plans and Programmes . Viewed at: 
https://www.mpi.govt.nz/consultations/proposals -to-strengthen -food-recalls -and-risk-based -plans -and-
programmes/ . 
76 MPI (2015), National Pol icy Direction for Pest Management . Viewed at: 
https://www.mpi.govt.nz/dmsdocument/9464 -National -Policy -Direction -for-Pest-Management -2015. 
77 MPI, Fees and Charges Overview . Viewed at: https://www.mpi.govt.nz/legal/legislation -standards -
and-reviews/legislation -fees-and-charges/updated -fees-and-charges/ . 
78 Biosecurity Amendment Act 2015 . WT/TPR/S/426 /Rev.1  • New Zealand  
- 64 - 
  • include offences and infringement notices, dairy industry fees, charges and levies; and 
require risk management programme registration in the context of the Animal 
Products  Act. 
3.119.   Under the Government Industry Agreement for Biosecurity Readiness and Response (GIA), 
New Zealand maintains a collaborative framework between the MPI and industries (including all 
major horticultural, aquaculture, and livestock sector groups) for improving  New Zealand's 
biosecurity. GIA participants co -invest to better manage pests and diseases that could damage 
New Zealand's primary industries, economy, and environment.79 Food Standards Australia 
New Zealand (FSANZ) is responsible for setting food standard s that govern the content and labelling 
of foods sold in both New  Zealand and Australia.  
3.120.   All domestically produced and imported foods, and animal and plant products must comply 
with all aspects of the relevant acts and standards codes in New  Zealand.  
3.3.4.2   Food products  
3.121.   Food standards relating to labelling and composition are adopted in the context of the 
Joint Food Standards. These Standards consist of a common set of food composition and labelling 
rules developed by FSANZ80 and are adopted in both Australia and  New Zealand. In addition, 
New Zealand has specific food requirements outside the scope of the joint system. These include 
rules on maximum residue limits for agricultural compounds in food; food hygiene and food safety 
provisions, including those for high -risk imported foods; details of materials permitted to be added 
to or used to produce food packaging materials; and export requirements relating to destination 
markets other than Australia. These standards set general safety and production requirements th at 
must be met by food products. The Importing Food Notice (described below) sets additional 
requirements for imported foods that require clearance for entry into New  Zealand.  
3.122.   The Food Act 2014, which replaced the Food Act  1981, was fully implemented betwe en 2016 
and 2019, and aims to, inter alia, provide an efficient, effective, and risk -based food safety 
regulatory regime that places the primary duty of persons who trade in food to ensure that it is safe 
and suitable. Under the Act and its relevant regula tions, businesses that represent higher risk, from 
a food safety point of view, will operate under more stringent food safety requirements and are more 
frequently checked than lower risk food businesses. The Act itself sets out food sectors according to 
the risks posed by food, and the risk -based measure that applies. As such, it introduces, Food Control 
Plans (FCPs) for higher risk activities and National Programmes for lower risk activities. New  Zealand 
Food Safety, a new unit created in 2018 within the M PI, and responsible for overseeing the food 
safety system, has developed a tool to help work out the food safety rules that apply to a given 
business or food activity . On completing the questions posed in the tool, a food business operator 
can print the pl an or programme that applies to its business or activities.81 
3.123.   In addition to the relevant provisions under the Food Act  2014, including the requirement to 
meet the Australia New  Zealand Food Standards Code, imported and domestically produced foods 
must als o meet applicable requirements under the Biosecurity Act  1993, the Animal Products 
Act 1999, the Agricultural Compounds and Veterinary Medicines Act  1997, the Wine Act  2003, and 
the Fair -Trading Act 1986.  
3.124.   Pursuant to the Food Act 2014, the MPI uses a risk -based approach for managing the safety 
of imported foods. Imported foods are categorized according to the level of risk they present to the 
New Zealand consumer, in accordance with Food Regulations 2015 (the implementing regulations 
of the Food Act  2014). Foods that present an increased risk to human health are referred to as High 
Regulatory Interest (HRI) foods and always require food safety clearance. Foods for which there is 
uncertainty or concern about the risk they present to human health are called fo ods of Increased 
Regulatory Interest (IRI). Some IRI foods require food safety clearance. An Importing Food Notice 
 
79 GIA, Government Industry Agreement . Viewed at: https://www.gia.org.nz/ . 
80 MPI, The Role and Responsibilities of FSANZ . Viewed at: https://www.mpi.govt.nz/food -
business/food -safety -codes -standards/australia -new-zealand -co-operat ion/food -standards -australia -new-
zealand -fsanz/ . 
81 MPI, My Food Rules online tool. Viewed at: https://www.mpi.govt.nz/food -business/food -safety -
rules/ . WT/TPR/S/426 /Rev.1  • New Zealand  
- 65 - 
  is published on the MPI website and updated as required.82 According to the authorities, imported 
HRI or IRI foods are categorized based on a  systematic and science -based process that involves the 
evaluation of the associated food safety risks and selection of appropriate risk management 
measures for managing any significant risks identified. Foods that require food safety clearance are 
listed in Schedules  1 (HRI foods) and 2 (IRI foods) (Table s 3.11 and 3.12). When imported food is 
required to be tested, the testing must be completed by an approved laboratory. The approved 
laboratories are listed in Schedule 3 of the Importing Food Notice.  
Table 3.11 Food of High Regulatory Interest  
Column A: Food  Column D:  
Country or geographic 
region of export  Column E:  
Evidence required  
Dairy:  
 
Raw milk products  • European  Union  
• United  Kingdom  
• Switzerland  Official Certificate  
Dairy:  
 
Fresh cheese, curd cheese and soft 
cheese (pasteurized)  • European  Union  
• United  Kingdom  
• Norway  Official Certificate or Sample and 
Test 
All other countries  Sample and Test  
Fish:  
 
Histamine susceptible fish and fish 
products  • Canada  
• European  Union  
• United  Kingdom  
• Norway  
• Thailand  Official Certificate or Sample and 
Test 
All other countries  Sample and Test  
Fish:  
 
Puffer fish  Korea, Rep. of  Official Certificate  
Fish:  
 
Ready to Eat (RTE) smoked fish and 
smoke flavoured fish (chilled)  • Canada  
• European  Union  
• United  Kingdom  
• Thailand  Official Certificate or Sample and  
Test 
All other countries  Sample and Test  
Meat:  
 
Bovine meat and products containing 
bovine meat  Australia  Manufacturers Declaration  
• Fiji 
• Thailand (NZ origin  beef 
only) Official Certificate  
• Brazil  
• Canada  
• European  Union  
• United  Kingdom  
• Japan  
• Mexico  
• United  States  
• Vanuatu  Official Certificate  
Meat:  
 
Fermented meat products, meat paste 
and pâté  • European  Union  
• United  Kingdom  Official Certificate or Sample and 
Test 
All other countries  Sample and Test  
Nuts and seeds:  
 
Peanuts, and pistachio nuts and their 
products (including peanut butter)  • China  
• United  States  Official Certificate or Sample and 
Test 
All other countries  Sample and Test 
 
82 MPI (2021), Food Notice: Impo rting Food , November. Viewed at: 
https://www.mpi.govt.nz/dmsdocument/10685/direct#:~:text=To%20provide%20visibility%20and%20control
,manner%20be%20specified%20by%20Notice.&text=Categorising%20food%20in%20this%20manner,importe
d%20food%20based%20on%20risk .  WT/TPR/S/426 /Rev.1  • New Zealand  
- 66 - 
  Column A: Food  Column D:  
Country or geographic 
region of export  Column E:  
Evidence required  
Nuts and seeds:  
 
Tahini and crushed sesame seeds and 
any products containing these  All countries  Sample and Test  
Seafood:  
 
Bivalve Molluscan 
Shellfish (BMS) 
and products 
containing BMS  Scallop meat – 
Whole adductor 
muscle with viscera 
and roe completely 
removed  All countries   
All other BMS and 
products containing 
BMS • Australia  
• Canada  
• Chile 
• European  Union  
• United  Kingdom  
• Japan  
• Korea, Rep. of  
• Peru 
• Thailand  
• Viet Nam Official Certificate or Sample and 
Test 
United  States  Documented Evidence  
China  Sample and Test  
Seafood:  
 
Ready to Eat 
(RTE) 
crustaceans  – 
lobsters, crabs, 
bugs, shrimps and 
prawns and their 
products   • Malaysia  
• Thailand  
• European  Union  
• United Kingdom  Official Certificate or Sample and 
Test 
All other countries  Sample and Test  
Spices:  
 
Pepper, chilli and 
paprika   All countries  Sample and Test  
Source:  MPI (2021), Food Notice: Importing Food . 
Table 3.12 Food of Increased Regulatory Interest  
Column A: Foods  Column D:  
Country or geographic region of export  Column E: Evidence required  
Frozen Berries  All countries  Official Certificate  
Sample and Test  
All countries  Manufacturers Declaration  
Source:  MPI (2021), Food Notice: Importing Food . 
3.125.   Foods that are not specified in Schedule  1 or 2 of the Notice do not require clearance under 
the Act. The authorities indicate that the safety of these foods is managed by ensuring that importers 
take reasonable steps to assess their safety and suitability, incl uding their compliance with relevant 
New Zealand food standards, prior to their importation into New  Zealand. In general, foods from 
Australia do not require food safety clearance, except for bivalve molluscan shellfish and products 
containing them, and bo vine meat and meat products containing greater than 5% bovine meat.  
3.126.   HRI and IRI foods must be from a specific country or geographic region of export listed in 
Column  D of Schedule  1 or 2 of the Notice. The notice also indicates, inter alia, the clearance 
requirements for the food, and the forms of evidence that the importer must provide to give 
assurance that food safety has been effectively managed. Regarding importers from other countries 
(not listed) that are willing to import HRI and IRI foods to New  Zealand, the competent authority of 
the exporting country or geographical region informs the MPI of its interest in exporting a particular 
HRI food and requests for information regarding the import requirements. Exchanges between the 
two parties will determi ne whether New  Zealand's requirements can be met by the exporting country 
or geographical region and official certification negotiated.  WT/TPR/S/426 /Rev.1  • New Zealand  
- 67 - 
  3.127.   Not meeting the requirements of the Importing Food Notice may result in failure to obtain 
entry of the food into New  Zealand, re -exportation or destruction of the product at the importer's 
cost, or suspension of an importer's registration.  
3.128.   In the context of the COVID -19 pandemic, New  Zealand authorities published guidance 
for workers in food service, food retail, and food m anufacturing businesses in line with the 
World  Health Organization's COVID -19 and food safety advice. According to the authorities, these 
documents have been regularly updated as the COVID -19 situation develops.  
3.3.4.3   Animal and plant products  
3.129.   No major changes w ere introduced regarding animal and plant products since the previous 
review. Under the Biosecurity Act, animal and plant products cannot be imported into New  Zealand, 
unless an import health standard (IHS) has been developed for that product. IHSs specify  the 
biosecurity requirements that must be met for a product to be imported. According to the authorities, 
there are currently over 338 IHSs issued, with 16 having been drafted between 2015 and 2020. Of 
the 16  drafted since 2015, 4 are for plant germplasm,  7 for fruits or vegetables or flowers for 
consumption, and 5 for animal products. In addition to drafting new IHSs, the existing IHSs are 
continuously amended to manage emerging pest risks and improve market access conditions. 
Information on  IHSs is regul arly published online.83 
3.130.   Risk analysis is the first stage in the development of an IHS. It involves the identification of 
potential pests and diseases associated with a product; the likelihood of entry and establishment in 
New Zealand; and the potential im pacts on the economy, the environment, and human health. In 
the 2015-20 period, no IHS requests were denied due to economic, environmental, or health 
reasons. Proposed IHSs go through a public consultation before their adoption.  
3.131.   For some products (e.g.  table eggs, uncooked chicken meat, honey), no IHS is in place, 
i.e. they cannot be imported as they do not meet the required sanitary standards. However, the 
authorities indicate that IHSs have been requested and are currently being worked under MPI's 
broader  work programme.  
3.132.   In July  2017, following the discovery of Mycoplasma bovis  (M. bovis) , a bacterial infection, 
in cattle in New  Zealand, the authorities declared a biosecurity response, whereby the Government 
and agricultural sector stakeholders decided to eradicate the disease. According to the authorities, 
the 10 -year eradication programme has made positive progress towards the eradication of M. bovis 
from New  Zealand. The focus of the programme is set to shift from finding the disease and clearing 
active confirmed properties (delimiting phase) to proof of absence surveillance to ensure absence of 
the disease. The latest report from the independent Technical Advisory Group for the M. bovis 
response recognizes the progress made by the Programme towards eradi cation. The report highlights 
that data from surveillance activities and genomic analysis suggest infection of M. bovis is not 
widespread, and that the rate of infection in the national herd is declining. As at mid -October  2021, 
the Programme had cleared 2 67 of the 271 total confirmed properties to date.  
3.133.   As part of the authorities' efforts to ensure a sound biosecurity framework for livestock, the 
National Animal Identification and Tracing (NAIT) Act 2012, which is fundamental to supporting 
responses to ani mal disease outbreaks, was amended in 2019. According to the authorities, 
the 2019 amendments were made to ensure the scheme is fit for future purpose and has since led 
to improvements in compliance with the scheme, enhancing traceability of cattle and dee r in 
New Zealand.  
3.3.4.4   Genetically modified organisms (GMOs)  
3.134.   GMOs are regulated through the Hazardous Substances and New Organisms (HSNO) 
Act 1996. Under the HSNO Act, all new organisms, including GMOs, are prohibited from importation, 
development, field testin g, or release without formal approval from the Environmental Protection 
Authority (EPA), which is required to take into account various factors related to the potential risks 
and benefits of the proposal. These include environmental, economic, social, cult ural, and public 
 
83 MPI, Import He alth Standards . Viewed at: https://www.mpi.govt.nz/legal/compliance -
requirements/ihs -import -health -standards . WT/TPR/S/426 /Rev.1  • New Zealand  
- 68 - 
  health considerations. The MPI ensures that the controls placed on new organism approvals by the 
EPA are complied with by enforcing the HSNO Act at the border and ensuring no unapproved 
GMOs  material enters the country.84 Genetically modif ied foods must undergo a safety assessment 
and approval by FSANZ before being able to be imported into New  Zealand and be labelled 
accordingly. According to the authorities, FSANZ is currently publicly consulting on a proposal to 
amend the definitions of " food produced using gene technology" and "gene technology" in the 
Australia New  Zealand Food Standards Code. These definitions determine what foods are classified 
as genetically modified food under the Code.  
3.3.5   Competition policy  and price controls  
3.3.5.1   Competition policy  
3.135.   New Zealand's competition regime continues to be governed mainly by the Commerce 
Act 1986 (Commerce Act) as amended.85 The Commerce Act aims to promote competition in 
New Zealand markets for the long -term benefit of consumers. It prohibits anti -competitive behaviour 
(anti-competitive coordinated behaviour and unilateral conduct) as well as acquisition of assets of a 
busin ess or shares if the acquisition is likely to lead to a substantial lessening of competition in a 
market. It applies broadly across the economy, including the public sector insofar as it engages in 
trade.86 In addition, the Commerce Act applies to persons residing or carrying out business in 
New Zealand who engage in anti -competitive conduct outside the country as long as this conduct 
affects a market in New  Zealand.  
3.136.   The New  Zealand Commerce Commission  (Commerce Commission or NZCC) is an 
independent statuto ry body and is responsible for enforcing the Commerce Act. The Commerce 
Commission is primarily accountable to the Minister of Commerce and Consumer Affairs for its 
operational performance and outputs. Competition policy is determined mainly by the MBIE, t hough 
the Commerce Commission can sometimes provide advice on policy developments with a focus on 
the operational aspects of competition policy.87 Thus, there is a differentiation between the 
operational side and the policy side of competition regulation i n New  Zealand. Besides the Commerce 
Act, the Commerce Commission is also responsible for the implementation of various other 
industry -specific regulatory regimes, including those set out under the Telecommunications 
Act 2001, the Dairy Industry Restructuri ng Act 2001, and the Fuel Industry Act 2020.  
3.137.   During the reporting period, the Commerce Act was amended several times. In 2017, 
amendments created a new regime governing cartels by categorizing cartel conduct into 
three  different types: price -fixing, restri cting output, and allocating markets. These 2017 
amendments also introduced:  
• A new exception to the general cartel prohibition, which permits a cartel provision in an 
agreement where the agreement involves a collaborative activity between two or more 
parties that does not have the dominant purpose of lessening competition. A clearance 
regime was also introduced, allowing a party proposing to enter into an agreement 
containing a cartel provision that is part of a collaborative activity to apply to the 
Commer ce Commission for clearance.88 
• A new exception relating to the vertical supply of goods and services, where the relevant 
supply contract contains a cartel provision that does not have the dominant purpose of 
lessening competition.89 
 
84 MPI, Genetically Modified Seeds and Nursery Stock . Viewed at: 
https://www.mpi.govt.nz/import/plants -flowers -seeds -plant-growing -products/seeds -for-sowing/genetically -
modified -seeds -and-nursery -stock/ . 
85 During the reporting period, the Commerce Act 1986 was amended 12 times (from 1  March  2016 
to 8 April 2021). For more details about the amendments, see 
https://www.legislation.govt.nz/act/public/1986/0005/latest/versions.aspx?av=True .  
86 Commerce Act , Sections 4 -6.  
87 OECD  (2019) , Annual Report on Competition Policy Developments in New  Zealand, 2018 , document  
DAF/COMP/AR(2019)25. Viewed at: https://one.oecd.org/document/DAF/COMP/AR(2019)25/en/pdf .  
88 For more about the collaborative activity clea rance regime, see Section 65A of the Commerce Act.  
89 For more about the exception relating to the vertical supply of goods and services, see Section 32 of 
the Commerce Act.  WT/TPR/S/426 /Rev.1  • New Zealand  
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  3.138.   Pursuant to further ame ndments in 2018, the Commerce Commission gained powers to 
conduct market studies as well as the right to accept enforceable undertakings90 to resolve 
competition concerns. The 2018 amendments also strengthened the regulatory regime for airports 
under Part  4 of the Commerce Act, by including a new inquiry process that may lead to further 
regulation of specified activities undertaken by airports.  
3.139.   In 2019, the Commerce Act was amended again to criminalize cartels. The penalty for an 
individual who has entered into or given effect to an arrangement containing a cartel provision and 
has intended to fix prices, restrict output, or allocate markets is up to seven years imprisonment, a 
fine of up to NZD  500,000, or both. For legal entities, the penalty is up to NZD  10 million.  
3.140.   In 2021, a new Bill amending the Commerce Act was introduced to the Parliament. The key 
proposed amendments relate to: (i)  reforming the prohibition on taking advantage of substantial 
market power to adopt an "effects test"; (ii)  repealing of p rovisions that shield some intellectual 
property arrangements from competition law scrutiny; (iii)  increasing the penalties for 
anti-competitive mergers; and (iv)  making it easier for the Commerce Commission to share 
confidential information with domestic counterparts. The Bill is currently undergoing its final stage 
of scrutiny by Parliament in the Committee of the Whole House and will then be submitted to the 
Governor General for Royal  Assent.  
3.141.   Market studies are an important part of competition policy in New Zealand. They can be 
initiated by the Minister of Commerce and Consumer Affairs or by the Commerce Commission itself. 
Such studies are carried out to identify factors that prevent, restrict, or distort competition in a given 
market. The results of a ma rket study might confirm or refute the initial presumption that 
competition in the market under investigation is distorted. In case a distortion is identified, the 
Commerce Commission gives non -binding recommendations to which the Government is required 
to publicly respond. The Commerce Commission has so far completed the Retail Fuel Market Study, 
and is currently carrying out the Retail Grocery and Residential Building Supplies market studies. 
The final reports for the Retail Grocery and Residential Buildi ng Supplies market studies are due to 
be published by 8  March  2022 and 6  December  2022, respectively.91 
3.142.   There is a voluntary merger notification system in New  Zealand. The Commerce Commission 
has the power to clear a proposed merger if it is satisfied that  the transaction is unlikely to have the 
effect of substantially lessen competition in a market in New  Zealand. An anti -competitive business 
acquisition can likewise be voluntarily notified to the Commerce Commission, and authorized by it if 
the Commission  finds that the resulting public benefits from the acquisition are likely to outweigh its 
anti-competitive effects. Firms can proceed with a merger without seeking clearance or authorization 
from the Commerce Commission. However, if the Commission finds th at a non -notified completed 
merger is likely to have the effect of substantially lessening competition in a market, the Commission 
has the power to take enforcement action, including applying to the court for divestments and 
penalties against companies and  individuals.  
3.143.   There are a number of ways by which the Commerce Commission may learn of non -notified 
mergers. The Commission has a comprehensive mergers surveillance programme by which it 
proactively gathers information about announced and completed mergers . It can also react to 
information provided by: (i)  counsel acting for parties to a merger (who may send the Commission 
an informal courtesy letter advising of a proposed merger for which clearance is not proposed to be 
sought); and/or (ii)  external partie s (including customers, suppliers, competitors, and industry 
bodies) that alert the Commission to an announced or completed merger.92 The Commission is not 
required to check all non -notified mergers or to examine a specific number each year. However, 
 
90 When giving a clearance or granting an authorization for business acquisitions,  the Commerce 
Commission may accept a written undertaking to dispose of assets or shares specified in the undertaking. For 
more details, see Section 69A of the Commerce Act.  
91 For more details on market studies in general and the Retail Fuel, Retail Grocery , and Residential 
Building Supplies market studies, see https://comcom.govt.nz/about -us/our -role/competition -studies .  
92 Commerce Commission (2019), Mergers and Acquisitions Guidelines . Viewed at: 
https://comcom.govt.nz/__data/assets/pdf_file/0020/91019/Mergers -and-acquisitions -Guidelines -July-
2019.pdf .  WT/TPR/S/426 /Rev.1  • New Zealand  
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  priority is given to enforcement investigations into mergers that could substantially lessen 
competition, where an application for clearance or authorization has not been made.93 
3.144.   Due to the situation created by the COVID -19 pandemic, in March  2020 the Commerce 
Commission announced that it would not take enforcement action under the Commerce Act against 
businesses  that cooperated to ensure an uninterrupted supply of essential goods and services during 
the COVID -19-related restrictions. Further guidance w as issued, explaining the treatment of 
business collaboration during the COVID -19 period.94 
3.145.   Some sectors of the economy still suffer from limited competition. For example, the study 
on retail fuel markets showed that: (i)  the main problem is at the wholesa le market level; (ii)  firms 
in the fuel market are making higher profits than would have been expected in a competitive 
environment; and (iii)  there are differences in fuel prices in different regions. Consequently, the 
Commerce Commission made recommendat ions based on which the Government decided to 
introduce the Fuel Industry Act 202095, aimed at increasing competition in the market for retail fuel.  
3.146.   Another sector with competition challenges was found to be the retail grocery sector. The 
Commission's mark et study made preliminary findings that the prices of groceries are higher in 
New Zealand when compared to international standards, and the two main retailers consistently 
make high profits. In addition, little innovation was observed in the sector. It als o outlines a range 
of remedial options in the Commission's draft report, inter alia, to simplify pricing policies, make the 
conditions for loyalty programmes clearer, make more land available for new grocery stores to be 
opened, and increase access to whol esale markets for a wide range of retailers.96 
3.147.   To increase competition in the electricity market, New  Zealand's electricity market regulator 
has banned retailer -initiated saves (where an electricity retailer tries to persuade a customer not to 
switch providers) and win -backs (where an electricity retailer tries to win back a customer after they 
have switched providers).97 
3.3.5.1.1   Enforcement  
3.148.   Enforcement of competition policy provisions is carried out by the Commerce Commission 
and the courts. The Commerce Comm ission has investigative powers under Sections  98, 98A, and  99 
of the Commerce Act pursuant to which it can, inter alia, request information or documents, search 
any premises mentioned in the warrant, and take evidence.  
3.149.   In 2018, the Commerce Commission ado pted Competition and Consumer Investigation 
Guidelines under which investigations are to be carried out in an impartial, objective, and fair 
manner.98 Information about potential violations may be received from different sources, such as 
complaints, the me dia, a referral from other authorities, as part of another Commission process 
(e.g. assessment of a merger clearance application), or the Commission's own intelligence, research, 
and analysis. After the completion of an investigation, decisions might be ta ken on court action, 
enforceable undertakings, settlement, a warning, an infringement notice, or a compliance advice 
letter. The person or legal entity that has violated competition norms can be required by the court 
to pay penalties and, in the case of an ti-competitive mergers, sell assets or shares. Data on 
competition enforcement during 2016 -20 are shown in Table  3.13. 
 
93 Comm erce Commission, Statement of Intent: Our Approach for 2020 -2024. Viewed at: 
https://comcom.govt.nz/__data/assets/pdf_file/0014/222305/Statement -of-Intent-20202024.PDF .  
94 Commerce Commission (2020), Business Collaboration under COVID -19. Viewed at: 
https://comcom.govt .nz/__data/assets/pdf_file/0019/215812/Business -collaboration -under -COVID -19-
guidelines -May-2020.pdf .  
95 The text of the Fuel Industry Act 2020 can be viewed at: 
https://www.legislation.govt.nz/act/public/2020/0060/latest/LMS321426.html . 
96 Commerce Commission, Market Study into the Grocery Sector . Viewed at: 
https://comcom.govt.nz/about -us/our -role/competition -studies/market -study -into-retail-grocery -sector. 
97 Electricity Authority  (2020), Saves and Win -backs Code : Amendment , 18 February.  Viewed at: 
https://www.ea.govt.nz/assets/dms -assets/26/26369Saves -and-Win-backs -Code-Amendment -Decision -
Paper.PDF . 
98 Commerce Commission (2018), Compe tition and Consumer Investigation Guidelines . Viewed at: 
https://comcom.govt.nz/__data/assets/pdf_file/0028/89821/Compe tition-and-Consumer -Investigation -
Guidelines -July-2018.pdf . WT/TPR/S/426 /Rev.1  • New Zealand  
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  Table 3.13 Data on competition enforcement, 2016 -20 
 
2016  2017  2018  2019  2020  
1 Initiation of case investigations 
(number)      
 
a) Cases concerning anti -competitive 
agreements (coordinated 
behaviour)  6 8 4 3 4 
b) Cases concerning abuse of 
dominance (unilateral  conduct)  1 2 0 1 0 
c) Leniency applications received  4 5 5 6 7 
d) Merger clearance applications 
investigated  14 7 9 9 11 
e) Merger authorization applications 
investigateda 0 1 0 1 0 
f) Merger enforcement investigations 
investigated  0 5 5 3 2 
2 Completed cases (number)      
 
a) Anti-competitive investigations  7 6 6 1 4 
b) Abuse of dominance investigations  1 1 2 1 0 
c) Settlements  1 2 0 1 4 
d (i) Merger clearance applications 
decided  12 7 9 11 9 
d (ii) Merger authorization 
applications decided  1 1 0 1 0 
d (iii) Merger clearance and 
authorisation applications approved 
or not challenged  13 4 11 14 11 
d (iv) Merger clearance and 
authorisation applications declined 
or withdrawn (not approved)  1 5 3 1 0 
f) Merger enforcement investigations 
decided  1 1 7 4 2 
f (i) Merger enforcement 
investigations with outcome of 
NZCC challenging merger in the 
court 0 0 2 1 0 
3 Infringement penalties  
(number / NZD)  3 / 
4.855  MM 2 / 
16.780  MM 1 / 
1.05 MM 2 / 
4.225  MM 2 / 
0.794  MM 
4 Appeals (completed)  1 2 2 0 1 
a Authorizations in the merger context relate to parties seeking the approval of the Commission for 
mergers that would likely have the effect of substantially lessening competition in a market and may 
not ordinarily receive merger clearance on that basis. Th e test for authorizations is the public benefit 
test. 
Note:  MM = million.  
Source:  Information provided by the authorities.  
3.3.5.1.2   International cooperation  
3.150.   New Zealand continues  to cooperate bilaterally with overseas competition authorities 
(Table  3.14) as well as multilaterally in international frameworks such as the International 
Competition Network  (ICN) and the Competition Committee of the OECD. The Multilateral Mutual 
Assistance Framework for Competition Authorities enables competition authorities in Austral ia, 
Canada, the United  Kingdom, the United  States, and New  Zealand to share intelligence, case 
theories, and investigative techniques to better coordinate investigations across borders. The 
Competition Commission has also signed an MOU with New  Zealand Pol ice on issues pertaining to 
investigations.99 
 
99 Commerce Commission , Annual Report 2020 . Viewed at: 
https://comcom.govt.nz/__ data/assets/pdf_file/0018/234027/Commerce -Commission -Annual -Report -
2020.pdf . WT/TPR/S/426 /Rev.1  • New Zealand  
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  Table 3.14 Signed bilateral agreements/arrangements on competition issues, 2016 -21 
Agreement / Arrangement type  Parties / Participants  Year 
Cooperation Arrangement 
(information sharing and 
investigative assistance)  New Zealand Commerce Commission and Commissioner 
of Competition (Canada)  2016 
Multilateral Mutual Assistance and 
Cooperation Framework for 
Competition Authorities (MMAC)a New Zealand Commerce Commission, Australian 
Competition and Consumer Commission, Competition 
Bureau of the Government of Canada, the UK 
Competition and Markets Authority, the U.S. Department 
of Justice, and U.S. Federal Trade Commission  2020 
a As informed by the authorities, the MMAC supports coordinated and informal cooperation and 
assistance, including cooperation on investigations, work on joint projects, and interagency training 
initiatives.  
Source:  Information provided by the authorities.  
3.151.   Competition chapters are also found in most RTAs signed by New  Zealand during the 
reporting period (Table  3.15). Competition chapters are included to ensure that the benefits of the 
agreement are not undermined by anti -competitive practices as well as to gi ve greater certainty and 
transparency for New  Zealand businesses operating in partner countries. In general, competition 
chapters recognize the importance of promoting and maintaining competition regulations that 
enhance economic efficiency and consumer we lfare. As such, they usually include provisions on 
transparency, cooperation, and capacity -building.  
Table 3.15 Summary of RTAs with competition chapters signed, 2016 -21 
RTA Competition chapter: brief overview  
New Zealand -Korea FTA  Transparency; existence of and cooperation and coordination 
between competition authorities; rules on consultation and 
exchange of information; and technical cooperation between 
authorities.  
Comprehensive and Progressive 
Agreement for Trans -Pacific 
Partn ership (CPTPP)  Adoption or maintenance of laws proscribing fraudulent and 
deceptive commercial activities that may distort competition; 
existence of an enforcement authority; rules on procedural 
fairness; transparency and cooperation; and experience and 
information sharing.100 
New Zealand -Singapore 
Comprehensive Economic Partnership 
(CEP) Upgrade  Application and enforcement of competition laws and regulations in 
a manner that does not discriminate on the basis of nationality; 
procedural rights for persons or entities subject to sanction; 
cooperation and capacity -building.  
Digital Economy Partners hip 
Agreement (DEPA)  Technical cooperation activities, including exchanging information 
and experiences on development of competition policies in the 
digital markets; sharing best practices on promotion of competition 
in digital markets; providing advice or training, including through 
the exchange of officials; cooperation in the area of law 
enforcement in digital markets.  
Regional Comprehensive Economic 
Partnership (RCEP)  Adoption or maintenance of competition enforcement authorities 
and competiti on laws and regulations to proscribe anti -competitive 
activities; application of laws in a manner that does not 
discriminate on the basis of nationality; transparency and 
cooperation; technical cooperation.  
New Zealand -China Free Trade 
Agreement Upgrade  Act consistently with the principles of transparency, 
non-discrimination and procedural fairness in the enforcement of 
competition laws; transparency and cooperation; independence of 
competition authorities.  
Source:  Information provided by the authorities.  
3.3.5.2   Price controls  
3.152.   Price controls are regulated under Part  4 of the Commerce Act. The Commerce Commission 
sets price and quality controls to regulated businesses from raising prices or reducing quality beyond 
levels expected in competitive markets . Price controls also allow for a customized approach if in the 
 
100 New Zealand  also signed the Trans -Pacific Partnership Agreement (TPP) in February 2016. Following 
the United States'  withdrawal from the TPP, the remaining members concluded neg otiations on the CPTPP on 
23 January  2018.  WT/TPR/S/426 /Rev.1  • New Zealand  
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  long-term interests of consumers (e.g. Powerco, Wellington Electricity). These controls are used in 
relation to 4  gas pipeline businesses (distribution and transmission), 17  electricity distri bution 
businesses (EDBs), and the sole electricity transmission business (Transpower).  
3.153.   Chorus, a publicly listed company, is also regulated under the Telecommunications Act. 
According to the authorities, this is done to create incentives for Chorus to act in the best interests 
of consumers and promote competition in telecommunications markets. One of the types of price 
controls used for Chorus is a revenue cap.  
3.3.6   State trading, state -owned enterprises, and privatization  
3.154.   According to New  Zealand's latest notif ication pursuant to the provisions of Article  XVII:4(a) 
of the GATT  1994 and paragraph 1 of the Understanding on the Interpretation of Article  XVII, 
Zespri  Group Limited (Zespri) remains the only state trading enterprise in operation in 
New Zealand.101 Zespri has an automatic, but not exclusive, right to export kiwifruit from 
New Zealand to overseas markets other than Australia. Under the Kiwifruit Export Regulations 1999, 
private traders can engage in exporting kiwifruit to markets other than Australia in c ollaboration 
with Zespri,  subject to authorization by Kiwifruit New  Zealand, an independent regulatory body. 
There is no need for private traders to seek for such authorization to export kiwifruit to Australia. 
The Commerce Commission regulates markets whe re there is little or no competition 
(Section  3.3.4).102 
3.155.   The Government maintains equity shares in 50 enterprises in different economic sectors. 
Table  3.16 shows an illustrative list of firms with state participation. According to the authorities, 
government -owned enterprises generally operate in competitive markets. The Treasury reviews the 
performance of these government -owned enterprises that may have ful l or partial commercial 
objectives. Collectively, these enterprises employ over 37,000 people and, as at 2021, held assets 
of around NZD  231 billion.103 
Table 3.16 Illustrative list of firms with state particip ation, 2021  
Description  
Autonomous Crown entities  
Government Superannuation Fund Authority  
Guardians of New  Zealand Superannuation  
New Zealand Infrastructure Commission/Te Waihanga  
New Zealand Lotteries Commission  
Public Trust  
Council -controlled trading organizations  
Christchurch International Airport Limited  
Dunedin International Airport Limited  
Hawke's Bay Airport Limited  
Crown agents  
Accident Compensation Corporation  
Earthquake Commission  
Kāinga Ora – Homes and Communities  
Crown entity companies  
Crown Irrigation Investments Limited  
New Zealand Growth Capital Partners Limited  
Radio New  Zealand Limited  
Television New  Zealand Limited  
 
101 WTO document G/STR/N/18/NZL, 2  July 2020.  
102 Commerce Commission, Regulated Industries . Viewed at : http://www.comcom.govt.nz/regulated -
industries/ . 
103 The Treasury, Portfolio of Companies and Entities . Viewed at: 
https://www.treasury.govt.nz/information -and-services/commercial -portfolio -and-advice/commercial -portfolio .  WT/TPR/S/426 /Rev.1  • New Zealand  
- 74 - 
  Description  
Crown research institutes  
AgResearch Limited  
Institute of Environmental Science and Research Limited  
Institute of Geological and Nuclear Sciences Limited  
Landcare Research New  Zealand Limited  
National Institute of Water and Atmospheric Research Limited  
New Zealand Forest Research Institute Limited  
The New  Zealand  Institute for Plant and Food Research Limited  
Independent Crown entities  
New Zealand Productivity Commission  
Mixed Independent Crown entities  
Genesis Energy Limited  
Mercury NZ Limited  
Meridian Energy Limited  
Public Finance Act Schedule 4A Companies  
City Rail Link Limited  
Crown Asset Management Limited  
Crown Infrastructure Partners Limited  
Education Payroll Limited  
The Network for Learning Limited  
New Zealand Green Investment Finance Limited  
Ngāpuhi Investment Fund Limited  
Ōtākaro Limited  
Predator Free 2050 Limited  
Provincial Growth Fund Limited  
Research and Education Advanced Network New  Zealand Limited  
Southern Response Earthquake Services Limited  
Tāmaki Redevelopment Company Limited  
State -owned enterprises  
Airways Corporation of New Zealand Limited  
Animal Control Products Limited  
AsureQuality Limited  
Electricity Corporation of New  Zealand Limited  
KiwiRail Holdings Limited  
Kordia Group Limited  
Landcorp Farming Limited  
Meteorological Service of New  Zealand Limited  
New Zealand Post L imited  
New Zealand Railways Corporation  
Quotable Value Limited  
Transpower New  Zealand Limited  
Other  
Air New  Zealand Limited (Listed company)  
National Provident Fund (Statutory corporation)  
Local Government Funding Authority  
Source:  Information provided by the authorities.  
3.3.7   Government procurement  
3.156.   New Zealand's spending on government procurement contracts amounted to approximately 
20% of GDP in 2020. Government spending on goods, services, and works was estimated at 
NZD 51.5 billion in 2020, compar ed with NZD  30.0 billion in 2016 and NZD  42.0 billion in 2017.104 
3.157.   New Zealand joined the WTO  Agreement on Government Procurement (GPA  2012) in 
August  2015, thus opening GPA -covered procurement markets to competition from suppliers 
from other GPA Parties. Du ring the reporting period, almost NZD  24 billion  was spent on 
GPA-covered procurement of goods, services, and works. Details can be found in Table  3.17. 
 
104 Data provided by the aut horities.  WT/TPR/S/426 /Rev.1  • New Zealand  
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  Table 3.17 Government procurement in New Zealand, 2015 -20 
(NZD million)  
 Level  Total value of 
procurement 
(GPA -covered 
and non -
covered)  GPA-covered procurement  
Total 
value  Awarded under open 
and selective 
tendering  Awarded under 
limited tendering  
Total value  Ratio  Total 
value  Ratio  
2015 Central government   126 108 86% 18 14% 
Sub-central government   25 25 99% 0.4 1% 
Other   92 92 100%  - 0% 
Total 30,000  243 225 93% 18 7% 
2016 Central government   4,732  4,459  94% 273 6% 
Sub-central government   692 464 67% 228 33% 
Other   384 379 99% 5 1% 
Total 30,000  6,295  5,302  91% 506 9% 
2017 Central government   1,102  829 75% 273 25% 
Sub-central government   3,417  3,366  99% 51 1% 
Other   2,180  2,157  98% 23 2% 
Total 42,000  6,699  6,352  94% 347 6% 
2018 Central government   1,076  808 75% 267 25% 
Sub-central government   1,861  1,738 93% 123 7% 
Other   2,567  2,465  96% 102 4% 
Total 42,000  5,504  5,011  91% 492 9% 
2019 Central government   1,400  851 61% 548 39% 
Sub-central government   2,014  1,730 86% 284 14% 
Other   2,866  2,589  90% 277 10% 
Total 42,000  6,280  5,170  82% 1,109 18% 
2020 Central government   1,683  1,064  63% 618 37% 
Sub-central government   611 255 42% 356 58% 
Other   461 407 88% 54 12% 
Total 51,500  2,755 1,726 63% 1,028 37% 
- Nil. 
Note:  1. Data on the total value of procurement (GPA covered and non -covered) by type of entity is not 
centrally collected. Total government procurement spend is calculated approximately every 
three  years but is not disaggregated into central, subcentral , and other entities.  
 2. Data for 2015 and 2016 were drawn from tender notices published in the Government Electronic 
Tenders Service (GETS). Specific contract values were used where possible; however, some values 
were estimated based on the mid -point of the price band indicated by t he entity.  
 3. 2015 values represent a partial year only (August to December) , as New  Zealand's GPA 
accession was effective from 15  August  2015.  
 4. Data for 2017, 2018 , and 2019 were obtained from contract award notices as recorded by 
government entities  in GETS, except for information from the New  Zealand Land Transport Agency , 
which was supplied separately.  
 5. Data for 2020 were obtained from contract award notices as recorded by government entities in 
GETS. Information from the New  Zealand Land Transport Agency (relevant to the totals for 
sub-central government and other entities) is not yet available.  
Source:  Information provided by New  Zealand, including in its notifications of procurement statistics to the 
Committee on Government Procurement.  
3.158.   The government procurement system is governed by the so -called five  principles105, the 
Government Procurement Charter, the Government Procurement Rules, and the related good 
practice guidance.106 The five principles comprise the following overarching values underpinning 
government procurement processes: (i)  plan and manage for great results; (ii)  be fair to all 
suppliers; (iii)  get the right supplier; (iv)  get the best deal for everyone; and (v)  play by the rules. 
The Charter sets out expectations for how gov ernment procurement should be carried out to achieve 
public values, such as creating opportunities for local businesses to participate in government 
 
105 For more details on these five principles, see  the New  Zealand Government Procurement website: 
https://www.procurement.g ovt.nz/procurement/principles -charter -and-rules/government -procurement -
principles/ . 
106 All the relevant documents can be viewed on the New  Zealand Government Procurement website : 
https://www.procurement.govt.nz/procurement/principles -charter -and-rules/ . WT/TPR/S/426 /Rev.1  • New Zealand  
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  procurement, looking for new and innovative solutions, and engaging with businesses with good 
employment pr actices. Related guidance provides additional advice on an end -to-end approach to 
strategic procurement as well as on specific areas of the procurement process, such as managing 
conflict of interest and managing insider risks.  
3.159.   The Government Procurement R ules, which regulate different phases of the procurement 
process from planning to the contract award, are mandatory for government departments, the 
New Zealand Police, the New  Zealand Defence Force, and most of the Crown entities.107 All other 
government ag encies are encouraged but not obliged to follow the Rules.  
3.160.   Updated Government Procurement Rules came into effect on 1  October  2019. One of the 
main amendments is the introduction of the so -called broader outcomes: secondary social, 
economic, or cultural be nefits "generated from the procurement activity".108 Currently, there are 
four broader outcomes to be considered by procuring entities in their procurement strategies, 
individual procurement procedures, and at the contract management stage:  
• increased acces s for New  Zealand businesses.109 Related to this outcome is a 
progressive procurement approach to increase the diversity of government suppliers, 
starting with Māori businesses. This includes a requirement that at least 5%  of the total 
number of mandated go vernment agencies' procurement contracts (including contracts 
above the GPA thresholds) must be  awarded to Māori businesses;   
• enhancement of construction skills and training;  
• improvement of conditions for New  Zealand workers; and  
• reduction of emission and  waste.110 
3.161.   Additional context and guidance primarily linked with the broader outcomes have been added 
to the new version of the Rules from 2019. These include but are not limited to: (i)  New Zealand 
may adopt measures that it deems necessary to accord favou rable treatment to the Māori, provided 
that such measures are not used as a means of arbitrary or unjustified discrimination or as a 
disguised restriction on trade in goods, trade in services, and investment111; (ii) procuring entities 
are encouraged to engage more with local businesses, especially with social enterprises and Māori, 
Pasifika, and regional businesses, in case of procurement below domestically defined thresholds; 
and (iii)  procuring entities must require their suppliers to ens ure and demonstrate that they, and 
their domestic supply chain, comply with all relevant employment standards and health and safety 
requirements .112 In addition, a new Rule requiring procuring entities to pay the contractor's fees 
promptly has been added.  
3.162.   In May  2021, two new Rules were approved by the Cabinet. Rule  12A allows the declaration 
of national, regional, or sectoral procurement response measures, including measures in response 
 
107 The list of government agencies required or encouraged to apply the Rules can be viewed on the 
New Zealand Government Procurement website : https://www.procurement.govt.nz/about -us/mandate -and-
eligibility/eligible -agencies -procurement/ . 
108 See Rule 16 on Broader Outcomes.  
109 The Guidelines on removing barriers f or New  Zealand  businesses (viewed at: 
https://www.procurement.govt.nz/assets/procurement -property/docume nts/broader -outcomes/removing -
barriers -for-new-zealand -businesses.pdf ) and on supporting Māori, Pasifika, and regional businesses (viewed 
at: https://www.procurement.govt.nz/assets/procurement -property/documents/broader -outcomes/supporting -
maori-pasifika -and-regional -businesses.pdf ) provide additional details.   
110 The Broader Outcomes are explained in detail in the Rules. For example, Rule 17 obliges procuring 
entities to consider how they can facilitate access of New  Zealand  businesses to the g overnment procurement 
sector, including Māori, Pasifika , and regional businesses , as well as social enterprises. Nevertheless, 
facilitating access for local businesses should not violate the principle of non -discrimination and the contract 
should be awarde d to the supplier offering the best value for money.  
111 New Zealand Government Procurement (2019), Government Procurement Rules . Viewed  at: 
https://www.procurement.govt.nz/assets/procurement -property/documents/government -procurement -
rules.pdf . 
112 For more details, see Rule 19 on Improving Conditions for New  Zealand  Workers. Another 
sustainability -related norm is included in Rule 20 on Transi tioning to a Net -Zero Emissions Economy and 
Designing Waste Out of the System , which mandates procuring entities to support the procurement of 
low-waste and low -emissions goods and services.  WT/TPR/S/426 /Rev.1  • New Zealand  
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  to a social, economic, or environmental crisis that follows an emergenc y period or that is not 
otherwise an emergency situation. Such measures must be consistent with New  Zealand's 
international commitments on government procurement. Moreover, Rule  18A requires procuring 
entities to consider ways in which they can create qual ity employment opportunities.  
3.163.   The Government Electronic Tenders Service (GETS) is an e -procurement platform where 
procuring entities are required to list contract opportunities, in addition to providing access to all 
relevant procurement documentation. GET S does not cover the whole procurement process from 
budgeting and planning to contract management and payment but allows for publication of 
procurement opportunities and receipt of tenders. The service is free of charge. New  Zealand 
also undertook commitme nts under the Open Government Partnership and National Action Plan 
2018-2020 to publish procurement -related data in an open format.113 
3.164.   New Zealand has several types of Special Purchasing Arrangements, such as: (i)  a Panel of 
Suppliers  – contracts entered into with suppliers that have been approved as capable of delivery and 
that have agreed to the terms and conditions of supply114; (ii) All-of-Government Contracts, 
i.e. supply agreements with approved suppliers for selected com mon purchased goods or services 
across the Government115; (iii)  Syndicated Contracts, which typically involve a group of entities 
aggregating their respective needs and procuring collectively; and (iv)  Common Capability 
Contracts  (CCs), which establish vari ous supply agreements with approved suppliers for selected 
common goods, services or works purchased across government. CCs can be either mandatory or 
voluntary, and an administrative fee or a levy may be charged for their use. The All -of-Government 
Contra cts are mandatory for Public Service Departments, New  Zealand Police, New  Zealand Defence 
Force, Crown agents, Independent Crown entities, Autonomous Crown entities, Crown entity 
companies, and Public Finance Act Schedule  4A companies,  and are voluntary fo r other procuring 
entities. The Panel of Suppliers and Syndicated Contracts are voluntary for all procuring entities.  
3.165.   New Zealand Government Procurement (NZGP) is the central purchasing body of 
New Zealand. It is tasked with setting up All -of-Government Co ntracts for commonly used goods 
and services, providing policy advice to the Government, developing procurement capability, and 
providing advisory and hands -on support for procuring entities.  
3.166.   Aggrieved suppliers can complain to the respective procuring ent ity if they believe that they 
have been treated unfairly, and entities have an obligation to respond to and treat the complaint 
fairly. If the supplier is still not satisfied after consultations with the procuring entity, it has several 
options of redress,  such as an independent review or investigation; a mediation or alternative dispute 
resolution; an investigation by the Auditor -General; an investigation by the Ombudsman, the State 
Services Commission, or the Commerce Commission; and court review. The agg rieved suppliers are 
free to choose a forum for launching the complaint.  
3.3.7.1   Thresholds and exemptions  
3.167.   The Rules in general apply to:  
• procurement of goods or services or refurbishment works, or a combination of goods or 
services or refurbishment works, when th e maximum total estimated value of the 
procurement equals or exceeds the value threshold of NZD  100,000 (excluding GST); 
and 
• procurement of goods or services or new construction works, when the maximum total 
estimated value of the procurement equals or exc eeds the value threshold of 
NZD 9 million (excluding GST).  
 
113 Commitment 12 of the National Action Plan 2018 -2020 aims "to p ublish the data on 
government -awarded contracts that is currently publicly available on the Government Electronic Tenders 
Service (GETS) as open data" . Open Government Partnership New  Zealand, Third National Action Plan . 
Viewed  at: https://ogp.org.nz/new -zealands -plan/third -national -action -plan-2018-2020.  
114 Such Panels may be established by an entity for its use only or be open for use by other entities 
when establish ed and approved as an Open Syndicated Contract.  
115 All entities must purchase through these agreements, unless there is a good reason not to.  WT/TPR/S/426 /Rev.1  • New Zealand  
- 78 - 
  3.168.   However, as the Rules set out best practices, they can also be used for below -threshold 
procurement procedures.  
3.169.   Procuring entities have the possibility to opt out of the Rules in specific cases, in cluding 
procurement between two procuring entities, procurement related to international development, and 
military and essential security interests. Nevertheless, even in the event of an opt -out, the procuring 
entities have to follow the Principles and goo d practice guidance.  
3.170.   In case the procurement value is above the threshold, the procuring entity needs to openly 
advertise the government procurement opportunities in GETS. Other media can also be used. The 
Rules allow for exemptions from the requirement to  openly advertise in cases of emergency, where 
there is only one supplier in the market, and where conditions are exceptionally advantageous for 
the procuring entity. In such cases, procuring entities can choose to use either a closed competitive 
process ( with a limited number of known suppliers by using a Request for Quote, Request for Tender, 
or Request for Proposal) or direct sourcing (with a known supplier by using a Request for Quote, 
Request for Tender, or Request for Proposal). Procuring entities can not exempt a procurement from 
open advertising to: (i)  avoid competition; (ii)  protect domestic suppliers; or (iii)  discriminate 
against any domestic or international supplier. In addition, such exempted procurement still needs 
to comply with other applica ble Rules.  
3.3.7.2   International cooperation  
3.171.   During the reporting period, New  Zealand concluded several RTAs. Of these, the 
New Zealand -Korea FTA, the New  Zealand -Singapore CEP Upgrade, and the CPTPP contain 
government procurement chapters envisaging transparency requirements as well as mutual access 
to government procurement markets. The New  Zealand -China Free Trade Agreement Upgrade 
contains provisions on transparency and anti -corruption as well as a commitment by China to enter 
into negotiations with New  Zealand  once it completes its accession to the GPA or if it were to 
negotiate such provisions with another country. The Digital Economy Partnership Agreement (DEPA) 
contains a provision recognizing that the digital economy will have an impact on government 
procur ement. The government procurement chapter of the RCEP is mainly concerned with 
transparency and cooperation in the area of government procurement.  
3.3.8   Intellectual property rights  
3.3.8.1   Overview  
3.172.   Intellectual property (IP) rights are of considerable economic importan ce to New  Zealand. 
Trade receipts from IP royalties and licensing fees grew by 125% between 2015 and 2020, 
amounting to just over USD  825 million in 2020.116 During the same period, New  Zealand's trade 
deficit narrowed considerably, although it remains a ne t importer of IP (Chart  3.4). 
3.173.   The institutional framework of New  Zealand's IP regime did not change during the review 
period. The Ministry of Business, Innovation and Employment (MBIE) leads the development of 
IP policy and legislation. The Intellectual Property Office of New  Zealand (IPONZ), an operational 
arm of the MBIE, registers and grants IP rights, with the exception of copyright and layout design 
rights, which vest automatically upon creation. The Plant Variety Rights (PVR) Office, wh ich is part 
of IPONZ, is in charge of applications for plant variety registration. The Ministry of Foreign Affairs 
and Trade (MFAT), in conjunction with the MBIE, negotiates and develops IP chapters in international 
agreements and represents New  Zealand in  other international discussions related to IP.  
 
116 World Bank Data. Viewed at: https://data.worldbank.org/indicator/BX.GSR.ROYL.CD?locations=NZ .  WT/TPR/S/426 /Rev.1  • New Zealand  
- 79 - 
  Chart 3.4 Charges for the use of intellectual property, n.i.e., 2015 -20117 
 
Source:  Stats NZ. Viewed at: https://www.stats.govt.nz/information -releases/balance -of-payments -and-
international -investment -position -year-ended-31-march -2021. 
3.174.   Table  A3.2 summarizes the substantive laws addressing each main type of IP right. Several 
IP laws were the subject of amendments during the review period, as discussed in the relevant 
sections below.118 Perhaps most significantly, the Geo graphical Indications (Wine and Spirits) 
Registration Act 2006 took effect in 2017. More changes are expected in the near term: a new 
regime for the protection of PVRs is expected to enter into force in 2022; the MBIE is drafting an 
omnibus Intellectual Pr operty Laws Amendment Bill, which would make technical amendments to 
the Patents Act 2013, Trade Marks Act 2002, Designs Act  1953, and their associated regulations119; 
and the Government launched an ongoing review of New  Zealand's copyright regime in 2017, which 
may be impacted by a new FTA with the United  Kingdom, signed on 28  February  2022.  
3.3.8.2   Policies on promotion and commercialization of innovation  
3.175.   The Government has been developing a Research, Science and Innovation (RSI) Strategy 
since 2018.120 At the end of October  2021, it launched further consultations on the RSI system.121 
Innovation, namely "developing New  Zealand as a hub for high -value, knowledge -intensive business 
 
117 Charges for the use of intellectual property are payments and receipts between residents and 
non-residents f or the authorized use of proprietary rights (such as patents, trademarks, copyrights, industrial 
processes and designs including trade secrets, and franchises) and for the use, through licensing agreements, 
of produced originals or prototypes (such as copy rights on books and manuscripts, computer software, 
cinematographic works, and sound recordings) and related rights (such as for live performances and television, 
cable, or satellite broadcast).  
118 New Zealand  has notified most new laws and regulations and amendments to existing laws and 
regulations to the TRIPS Council. The associated notifications, carrying the IP/N/1/NZL/ - symbol, have been 
provided in relevant footnote references.  
119 MBIE, Proposed Intellectual Property Laws Amendment Bill . Viewed at: 
https://www.mbie.govt.nz/business -and-employment/business/intellectual -property/proposed -intellectual -
property -laws-amendment -bill/. 
120 MBIE, Research, Science and Innovation System Performance Report 2018 , p. 2. Viewed at: 
https://www.mbie.govt.n z/dmsdocument/1499 -research -science -and-innovation -system -performance -report -
2018.  
121 MBIE (2021), "MBIE Open Consultation on Issues Facing Research, Science and Innovation System", 
28 October . Viewed at: https://www.mbie.govt.nz/about/news/mbie -opens -consultation -on-issues -facing -
research -science -and-innovation -system/ ; and Te Ara Paerangi – Future Pathways . Viewed at: 
https://www.mbie.govt.nz/science -and-technology/science -and-innovation/research -and-data/te -ara-paerangi -
future -pathways /. 
02004006008001,0001,2001,4001,600
2015 2016 2017 2018 2019 2020NZD (million)
Exports ImportsWT/TPR/S/426 /Rev.1  • New Zealand  
- 80 - 
  conducting more R&D", was among the six key focus areas of the Government's Business Gr owth 
Agenda 2015/16.122 In 2014, approximately two  thirds of New  Zealand's R&D expenditures were on 
manufacturing, primary industries, ICT, health, and environment.123 Although New  Zealand's gross 
domestic expenditure on R&D (GERD) increased from 1.23% of GDP in 2015 to 1.41% in 2019, it 
remains low by OECD standards. The proportion of New  Zealand's R&D that is government -financed 
is, however, higher than the OECD avera ge.124 The OECD estimates that low levels of R&D 
investment could account for approximately 40% of the productivity gap between New  Zealand and 
the OECD average.125 The Government aims to increase total R&D spending to 2% of GDP by 2027. 
In an effort to boos t private sector R&D, it introduced a 15% R&D tax credit in 2019126, and 
subsequently enhanced its refundability to allow loss -making and pre -profit businesses to receive 
the benefit in cash.127 
3.176.   New Zealand has eight universities, seven Crown Research Instit utes (CRIs), and a number 
of independent research organizations that undertake publicly funded research.128 A recent IPONZ 
study found that 8% of domestic patent activity in New  Zealand comes from its universities and 
CRIs, which are sources of high -quality  commercializable technology that is often patented to 
facilitate technology transfer (licensing).129 Despite low levels of investment relative to other small 
advanced economies, New  Zealand's researchers have made an impact in their academic fields, as 
measured by their publication and citation rates.130 
3.177.   The National Statement of Science Investment 2015 -2025 provides the long -term vision and 
strategic direction for New  Zealand's public investments in science.131 The MBIE, in collaboration 
with other agencies,  including Callaghan Innovation (CI), the Health Research Council, and the Royal 
Society of New  Zealand, coordinates contestable funding rounds to support investments in over a 
dozen different funds, schemes, networks, initiatives, and fellowships, includi ng: (i)  the 
Commercialisation Partner Network, which builds the capability to turn publicly funded scientific 
research into commercially viable products; and (ii)  the PreSeed Accelerator Fund, which provides 
project funding for early stage technology comme rcialization activities.132 
3.178.   CI is a stand -alone Crown Entity whose mission is to help domestic businesses commercialize 
their innovations. It offers a range of services and tailored programmes, including access to experts, 
technology and product development , innovation skills, business collaborations, and R&D grants and 
loans to promote business growth.133 Although CI assists businesses at all stages, it offers specialized 
programmes for start -ups. Founder Incubators, in place since 2001, help accelerate the path to 
 
122 New Zealand Government (2015), The Business Growth Agenda 2015/16: Toward 2025 , p. 6. 
Viewed  at: https://www.beehive.govt.nz/sites/defa ult/files/Business%20Growth%20Agenda%20 -
%20Towards%202025.pdf .  
123 MBIE, National Statement of Science Investment, 2015 -2025, p. 34. Viewed at: 
https://www.mbie.govt.nz/assets/2eaba48268/national -statement -science -investment -2015-2025.pdf .  
124 OECD , Main Science and Technology Indicators , Vol. 2021, Issue 1, Tables 2 and 14. Viewed at: 
https://www.oecd -ilibrary.org/docserver/eea67efc -
en.pdf?expires=1635607066&id=id&accname=ocid195767&checksum=4C13C1EB2473881A8686F8DFDEF83BA
E. The Government's tot al investment in RSI for FY2020/21 was approximately NZD  1.8 billion. MBIE (2020) , 
Briefing for the Incoming Minister of Research, Science and Innovation , November, p.  24. Viewed at: 
https://www.beehive.govt.nz/sites/default/files/2020 -12/RSI.pdf . 
125 MBIE (2016),  What We Know (And Don't Know) about Economic Growth in New  Zealand , Working 
Paper 16/01, p. 25. Vi ewed at: https://www.mbie.govt.nz/dmsdocument/4028 -what-we-know -and-dont-know -
about -economic -growth -in-new-zealand .  
126 Taxation (Resea rch and Development Tax Credits) Act 2019. Viewed at: 
https://legislation.govt.nz/act/public/2019/0015/latest/LMS110236.html .  
127 COVID -19 Response (Taxation and Social A ssistance Urgent Measures) Act 2020. Viewed at: 
https://www.legislation.govt.nz/act/public/2020/0008/latest/whole.html .  
128 MBIE (2020) , Briefing for the Incoming Ministe r of Research, Science and Innovation , p. 5.   
129 Derwent  (2020) , Survey of New  Zealand Patent Activity , p. 37. Viewed at: 
https://www .iponz.govt.nz/assets/pdf/about -iponz/clarivate -report -survey -of-new-zealand -patent -activity.pdf . 
The Patents Act 2013 adopted the international standard of absolute novelty, rather than local novelty, and 
requires examiners to examine an invention's inven tive step.  
130 MBIE (2020) , Briefing for the Incoming Minister of Research, Science and Innovation , p. 10.  
131 MBIE, National Statement of Science Investment, 2015 -2025.  
132 MBIE, Funding Agencies . Viewed at: https://www.mbie.govt.nz/science -and-technology/science -and-
innovation/funding -information -and-opportunities/funding -agencies/ .  
133 CI, About: Our Role . Viewed at: https://www.callaghaninnovation.govt.nz/about -us/our -role. See 
also TRIPS Council, Minutes of Meeting held 13  February  2019, WTO document IP/C/M/91/Add.1 , 2 April 2019,  
paras.  276-277. WT/TPR/S/426 /Rev.1  • New Zealand  
- 81 - 
  market for founder -focused start -ups by providing core business support and networking servi ces 
for entrepreneurs. Technology Incubators, initially launched as a pilot programme in 2014 with public 
and private funding, operate with a market -based, profit -driven focus and work with IP -intensive 
firms to identify commercially viable IP -based ideas or technology around which to build a 
business .134 CI also funds three - to five -month Accelerator programmes that offer mentoring, 
coaching, and business support focused on rapid and intensive product development to establish 
investment -ready start -ups.135 Once a business is ready to expand internationally, it can benefit 
from the assistance of New  Zealand Trade and Enterprise (NZTE), New  Zealand's international 
business development agency .136 The NZTE's International Growth Fund assists firms with the 
potenti al to contribute to New  Zealand's long -term economic growth by supporting efforts to acquire 
key capabilities for business growth ( Section  3.2.4 ).137 
3.179.   IPONZ has also undertaken to increase IP awareness among the estimated 10,000 new small 
to medium -size busi nesses and start -ups launched each year that do not register their IP. It launched 
online campaigns that leverage social media and created IP cards for small business road shows. A 
new Trade Mark Check website tool was designed specifically to assist small  businesses and non -IP 
experts quickly determine, with the aid of deep -learning artificial intelligence technology, whether a 
brand name or logo is already registered.138 IPONZ also provides a number of online resources to 
assist businesses in capturing, pr otecting, and managing their IP, and avoiding conflicts with the 
rights of others.139 
3.3.8.3   International context  
3.180.   New Zealand has been a member of the World Intellectual Property Organization (WIPO) 
since 1984 and is signatory to 14  WIPO -administered treaties.140 During the review period, it 
acceded to four of them: (i)  the Budapest Treaty on the International Recognition of the Deposit of 
Microorganisms for the Purposes of Patent Procedure; (ii)  the Marrakesh Treaty to Facilitate Access 
to Published Works for Pers ons Who Are Blind, Visually Impaired or Otherwise Print Disabled 
(WIPO  Marrakesh Treaty); (iii)  the WIPO Copyright Treaty; and (iv)  the WIPO Performances and 
Phonograms Treaty. New  Zealand also acceded to the Paris Act (1971) of the Berne Convention for 
the Protection of Literary and Artistic Works during the review period. New  Zealand has been a party 
to the 1978  Act of the International Convention for the Protection of New Varieties of Plants 
(UPOV  Convention) since 1981, and the Convention on Biological Diversity since 1993. The Protocol 
Amending the TRIPS  Agreement entered into force for New  Zealand on 23  January  2017.  
3.181.   New Zealand is also party to a range of bilateral, regional, and multilateral instruments, 
including RTAs, investment treaties, framework  agreements, memoranda of understanding, and 
cooperation agreements that address IP. IP provisions are included in most of New  Zealand's FTAs.  
The CPTPP, which entered into force during the review period, and the RCEP, which was signed 
during the review period, both contain lengthy IP chapters and high levels of protection . The 
New Zealand -Korea FTA, which entered into force at the end of 2015, also contains a chapter on IP, 
and includes specific commitments concerning the protection of trademarks, copyright, and related 
rights, technological protection measures and electronic rights management information, and 
enforcement. New  Zealand has contin ued to collaborate on IP matters with the Association of 
 
134 CI, Access to Experts: Technology Incubators . Viewed at: 
https://www.callaghaninnovation.govt.nz/access -experts/technology -incubators ; and CI (20 19), " Changes to 
Boost Startup Incubation and Networks ", 8 April. Viewed at: https://www.callaghaninnovation.govt.nz/news -
and-events/chang es-boost -startup -incubation -and-networks . See also TRIPS Council, Minutes of Meeting held 
11 June 2014, WTO document IP/C/M/76/Add.1 , 18 August  2014, paras.  320-322. 
135 CI, Access to Experts: Accelerators . Viewed at: https://www.callaghaninnovation.govt.nz/access -
experts/accelerators .  
136 NZTE , About NZTE . Viewed at: https://www.nzte.govt.nz/page/about -nzte. See also TRIPS Council, 
Minutes of Meeting held 13  February  2019, WTO document IP/C/M/91/Add.1 , 2 April 2019, para. 278. 
137 Information provided by the authorities. See MBIE  (2015) , Evaluation of the NZTE Internatio nal 
Growth Fund , April. Viewed at: https://www.mbie.govt.nz/dmsdocument/2270 -evaluation -nzte-international -
growth -fund-pdf. 
138 IPONZ (2021), IPONZ Year i n Review 2019/20 , pp. 9 -10. Viewed at: 
https://www.iponz.govt.nz/assets/pdf/about -iponz/iponz -year-in-review -201920.pdf .  
139 IPONZ , IP Business Management . View ed at: https://www.iponz.govt.nz/about -ip/overview/ip -
business -management/ .  
140 WIPO , WIPO -Administered Treaties . Viewed at: 
https://wipolex.wipo.int/en/treaties/ShowResults?country_id=134C . WT/TPR/S/426 /Rev.1  • New Zealand  
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  Southeast Asian Nations; Australia; China; Hong  Kong,  China; Malaysia; Singapore; and Thailand in 
the context of FTAs and EPAs in force with those countries.141 
3.182.   New Zealand signed a new FTA with the U nited Kingdom on 28  February  2022. The FTA, if 
it enters into force as planned by the end of 2022, would oblige New  Zealand to make certain 
changes to its copyright system, including a 20 -year extension of the copyright term for authors, 
performers, and pr oducers (so that current protections of life plus 50 years would become life plus 
70 years and current protections of 50 years would become 70 years); the introduction of an artist 
resale right scheme; and expanded rights for performers. It would also comm it New  Zealand to 
make all reasonable efforts to join the WIPO Hague Agreement Concerning the International 
Registration of Industrial Designs.142  
3.183.   IPONZ continues to strengthen its links to other IP offices, particularly those of key partners 
in the United  Kingdom, Singapore, Australia, Canada, Japan, China, and Fiji. In 2017, IPONZ joined 
the Global Patent Prosecution Highway (GPPH) pilot programme, which permits patent applicants to 
request expedited examination on the basis that one or more claims in the  application have been 
deemed allowable by another of the 27  participating GPPH IP offices.143 New Zealand also 
collaborates with its regional neighbours on IP matters in the APEC Intellectual Property Rights 
Expert Group.144 
3.3.8.4   Genetic resources, traditional k nowledge, and folklore  
3.184.   The protection, use, and guardianship of mātauranga Māori (Māori knowledge system) and 
other tāonga  (tangible and intangible Māori treasures), including the relationships of the Māori 
indigenous people of New  Zealand with the flora a nd fauna of New  Zealand, are important 
considerations in the evolution of New  Zealand's IP system. New  Zealand's current patent and 
trademark regimes include provisions designed to prevent the registration of trademarks or granting 
of patents that would be  considered offensive by Māori or contrary to Māori values. IPONZ may refer 
an application for a trademark, geographical indication (GI), design, or patent to a Māori Advisory 
Committee for advice, which the Commissioner has discretion to follow. In 2014, the Māori tribe 
Ngāti Toa Rangatira obtained, through legislation, an attribution right in relation to the haka 
Ka Mate, a traditional war dance.145 
3.185.   During the review period, the Government pursued a "whole of government", Te Pae Tawhiti, 
approach to addres sing issues raised and recommendations made in the 2011 Waitangi Tribunal146 
Wai 262 report Ko Aotearoa Tenei147 on claims that the Government had failed to adequately protect 
mātauranga Māori and other tāonga . The Government and Māori are working together t o address 
the protection, use, and development of mātauranga Māori and other tāonga , and in doing so, 
delivering enduring economic, social, environmental, and cultural benefits for Aotearoa 
New Zealand.148 
 
141 MFAT , Free Trade Agreements . Viewed at: https://www.mfat.govt.nz/en/trade/free -trade-
agreements/ . 
142 MFAT , New Zealand -United  Kingdom Free Trade Agreement . Viewed at: 
https://www.mfat.govt.nz/en/trade/free -trade-agreements/free -trade -agreements -under -negotiation/n ew-
zealand -united -kingdom -free-trade -agreement/ ; and United  Kingdom Department for International Trade , 
UK-New Zealand Free Trade Agreement . Viewed at: https://www.gov.uk/government/collections/uk -new-
zealand -free-trade -agreement . 
143 IPONZ , Global Patent Prosecution Highway . Viewed at: https://www.iponz.govt.nz/about -
ip/patents/gpph/ . 
144 APEC, Intellectual Property Rights Experts Group . Viewed at: 
https://www.apec.org/groups/committee -on-trade -and-investment/intellectua l-property -rights -experts -group . 
145 Haka Ka Mate Attribution Act 2014. Viewed at: 
https://www.legislation.govt.nz/act/public/2014/0018/latest/DLM5954403.html .  
146 The Waitangi Tribunal is a permanent commission of inquiry that makes recommendations on claims 
brought by Māori relating to Crown actions allegedly in breach the Treaty of Waitangi, an 1840 agreement 
between the British Crown and Māori rangatira (chiefs).  
147 Waitangi Tribunal  (2011), " Ko Aotearoa Tēnei: Report on the Wai 262 Claim Released ", 2 July. 
Viewed at: https://www.waitangitribunal.govt.nz/n ews/ko -aotearoa -tenei-report -on-the-wai-262-claim-
released/ . 
148 Te Puni Kōkiri, Ministry of Māori Development , Te Pae Tawhiti: Wai 262 . Viewed at: 
https://www.tpk.govt.nz/en/a -matou -kaupapa/te -ao-maori/wai -262-te-pae-tawhiti . WT/TPR/S/426 /Rev.1  • New Zealand  
- 83 - 
  3.186.   The Plant Variety Rights Bill149 pending in Parliament, in line with the Waitangi Tribunal's 
recommendations150, proposes establishing a Māori Advisory Committee. The Committee would be 
empowered to, among other things, assess and determine whether a PVR, if granted, could have an 
adverse  effect on the kaitiaki (guardian) relationship with the indigenous plant variety or a 
non-indigenous plant variety of significance that is the subject of a PVR application, and, if so, decline 
registration of the PVR. As part of its review of the Copyrigh t Act 1994, the Government is 
considering the Waitangi Tribunal's recommendation that the tangible and intangible expressions of 
Māori artistic and cultural traditions should be addressed through a new sui generis legal regime. 
The Government is also pursu ing, in the context of a comprehensive bioprospecting policy, the 
Waitangi Tribunal's recommendation that patent applicants be required to disclose the origin of 
genetic resources and traditional knowledge.151 
3.3.8.5   Patents  
3.187.   The Patents Act 2013 and Patents Regulations 2014 continue to provide the primary legal 
and regulatory basis for patent registration, protection, and enforcement in New  Zealand. Both were 
amended during the review period.  
3.188.   In 2017, amendments to the Patents Act 2013 came into force to impl ement a new single 
patent attorney regulatory regime between Australia and New  Zealand. All those providing patent 
attorney services in either country must be registered in the new trans -Tasman register. Attorneys 
registered under prior schemes were automa tically entered on the new register.152 
3.189.   The CPTPP Amendment Act 2018 introduced a grace period into the Patent Act for prior 
disclosure. Disclosure of the invention by or with the consent of the applicant, or any person from 
whom they derive title (i.e. the  inventor), during the 12 months preceding the filing of a complete 
specification, no longer constitutes prior art for the purpose of a New  Zealand patent application.153 
3.190.   In 2020, the Patents Regulations 2014 were amended to increase fees generally and add 
certain new fees. Examination fees were increased by 50% and new fees created for "excess" claims 
(30 or more).154 Renewal and maintenance fees were generally doubled (in some cases more). 
IPONZ explained that the increases were necessary to reduce its memo randum account, rebalance 
revenue as compared with trademark revenue, and improve regime efficiency, equity, and 
effectiveness.155 
3.191.   Patenting activity declined in New  Zealand during the review period. Annual applications 
declined 25% while annual grants decl ined 61% between 2014 and 2020. During the same period, 
non-residents comprised a growing proportion of both applicants and grantees, reaching 94% 
and 96%, respectively, in 2020 (Table  A3.3). A study commissioned by IPONZ links these trends to 
the higher p atentability requirements of the Patents  Act 2013156, which have created examination 
delays. The study hypothesizes that foreign applicants filing in New  Zealand are typically 
sophisticated entities pursuing strategic protection globally, since they have us ually filed in more 
than 11 jurisdictions (with 96% also having filed in Australia). The highest numbers of foreign 
 
149 New Zealand  Parliament , Plant Variety Rights Bill . Viewed at: https://www.parliament.nz/en/pb/bills -
and-laws/bills -proposed -laws/document/BILL_111271/plant -variety -rights -bill. 
150 Waitangi Tribunal, Wai 262 rep ort Ko Aotearoa Tenei , pp. 96-97. Viewed at: 
https://forms.justice.govt.nz/search/Documents/WT/wt_DOC_68356054/KoAotearoaTeneiTT1W.pdf .  
151 MBIE, Mātau ranga and Taonga Māori and the Intellectual Property System . Viewed at: 
https://www.mbie.govt. nz/business -and-employment/business/intellectual -property/matauranga -and-taonga -
maori -and-the-intellectual -property -system/ .  
152 Patents (Trans -Tasman Patent Attorneys and Other Matters) Amendment Act 2016, WTO document 
IP/N/1/NZL/11 , IP/N/1/NZL/P/8, 8  April 2021 . 
153 CPTPP Amendment Act 2018, Section 72, WTO document IP/N/1/NZL/15, IP/N/1/NZL/C/8, 
IP/N/1/NZL/P/10, IP/N/1/NZL/T/7, IP/N/1/NZL/O/1, 8  April 2021.  See also IPONZ  (2018), " Amendment to the 
Patents Act 2013 in Effect from 30  December  2018", 6 December . Viewed at: 
https://www.iponz.govt.nz/news/amendment -to-the-patents -act-2013/ . 
154 Patents Amendment Regulations 2019, WTO document IP/N/1/NZL/18 , IP/N/1/NZL/P/11 , 
8 April 2021.  
155 IPONZ , IPONZ Fees Review and Consultation . Viewed at: https://www.iponz.govt.nz/about -
iponz/iponz -fees-review -and-consultation/ . 
156 The Patent Act 2013 adopted of the international standard of absolute novelty, rather than local 
novelty, and requires examiners to examine an invention's inventive step. WTO d ocument IP/N/1/NZL/5 , 
IP/N/1/NZL/P/5, 23  February 2015 . WT/TPR/S/426 /Rev.1  • New Zealand  
- 84 - 
  applications originate from the United  States, Australia, Europe, and the United  Kingdom. 
Pharmaceutical technology inventions157 dominate fo reign filings, followed by materials science and 
biotechnology products or processes. In contrast, the most common fields for domestic applicants 
are agriculture and food, civil engineering (specifically building materials), and industrial 
engineering. The  contrasting fields of focus for foreign and domestic applicants is likely influenced 
by the ease with which the goods that embody the invention can be shipped.158 
3.192.   The annual rate at which New  Zealand -based entities obtained patent protection abroad 
increas ed over 50% from 2014 to 2020, outpacing the 13% increase in annual applications made 
abroad during the same period (Table A3. 3). In 2017, international patent applications originating 
from New  Zealand most frequently involved the following technologies: m edical technology; 
electrical machinery, apparatus, energy; biotechnology; civil engineering; and pharmaceuticals.159 
Nearly half of all New  Zealand patent filings are also filed in Australia; one  third are also filed in the 
United  States; and one quarter are also filed with the European Patent Office.160 
3.3.8.6   Undisclosed information  
3.193.   Trade secrets are not statutorily protected  under New  Zealand civil law, but they may be 
protected by contract and through a common law breach of confidence action. Under New  Zealand's 
criminal law, misappropriation of a trade secret, with the intent to obtain a financial or economic 
advantage or t o cause loss to another, is a crime punishable by up to five years in prison.161 In 
addition, the crime of accessing a computer system for a dishonest purpose to obtain property may 
apply to digital files, which is punishable by up to seven years in prison.162 
3.194.   Unless otherwise exempt, agricultural and veterinary compounds must be registered by the 
MPI prior to their sale, manufacture, import, or use in New  Zealand, as set out in the Agricultural 
Compounds and Veterinary Medicines Act 1997 (ACVM Act) . Applicat ions for registration must be 
supported by data on the product's features, plant or animal safety, efficacy, and the likelihood of 
residues remaining when used on crops or animals for human consumption.163 In 2016, New  Zealand 
extended the data protection t erm for confidential information supporting an application for an 
innovative agricultural or veterinary compound from 5 years to 10 years from the grant or refusal 
of the application. Confidential information supporting an application for a non -innovative compound 
or a new use or method of use for either an innovative or non -innovative compound were newly 
granted five -year periods of protection.  Under the amended ACVM Act, the Director -General may 
use confidential information during the protected period in determining whether to grant an 
application other than the application to which the information relates or related, or disclose it to 
third parties, if the opinion of the Director -General is that the disclosure or use is necessary to 
protect the health or safety of members of the public.164 
3.195.   The protection of confidential information submitted to the New  Zealand Medicines and 
Medical Devices Safety Authority (MedSafe) is discussed in Section  3.3.8.13.  
3.3.8.7   Plant variety rights  
3.196.   The Plant Variety Rights Act 1987 (PV R Act) and Plant Variety Rights Regulations  1988 
continue to provide the legal and regulatory basis for the protection of new cultivated plant varieties. 
 
157 Several USTR Special 301 reports issued du ring the review period have noted concerns expressed by 
US pharmaceutical and medical device industries regarding the operation of New  Zealand 's Pharmaceutical 
Management Agency and negative aspects of the overall climate for innovative medicines in New  Zealand . 
See, e.g. USTR, 2021 Special 301 Report, p. 29. Viewed at: 
https://ustr.gov/sites/default/files/files/reports/2021/2021%20Special%203 01%20Report%20(final).pdf .  
158 Derwent  (2020) , Survey of New  Zealand Patent Activity .  
159 IPONZ  (2020),  Year in Review 2018/19 , p. 6. Viewed at: 
https://www.iponz.govt.nz/assets/pdf/about -iponz/5307 -iponz -year-in-review -201819.pdf .  
160 Derwent  (2020) , Survey of New  Zealand Patent Activity , p. 27.  
161 Crimes Act 1961, Section 230. Viewed at: 
https://www.legislation.govt.nz/act/public/1961/0043/latest/DLM327382.html .  
162 Crimes Act 1961, S ection 249.  
163 Agricultural C ompounds and Veterinary Medicines Act 1997. Viewed at: 
https://www.legislation.govt.nz/act/public/1997/0087/latest/DLM414577.html .  
164 Agricultural Compounds and Vete rinary Medicines Amendment Act 2016. Viewed at: 
https://www.legislation.govt.nz/act/public/2016/0082/latest/DLM6554412.html . WT/TPR/S/426 /Rev.1  • New Zealand  
- 85 - 
  No significant amendments were made during the review period. The PVR Act requires a variety to 
be suf ficiently "distinct, uniform and stable" (DUS) to be eligible for protection. IPONZ's PVR Office 
developed a quality management system for DUS testing, which was implemented in 2019. As 
of 2020, 1,295  plant variety rights were on New  Zealand's registry.165 IPONZ has noted a slow 
decline in applications in recent years.166 
3.197.   The MBIE initiated a review of New  Zealand's regime for plant variety rights in 2017, with a 
view to implementing obligations under the Treaty of Waitangi and meeting its CPTPP commitment 
to align with the 1991 version of the UPOV Convention by 30  December  2021. A new Plant Variety 
Rights Bill167 was introduced to Parliament in May 2021. The Bill has been considered by the 
Parliamentary Select Committee, which issued its report pr oposing some changes to the Bill in 
November  2021. It is expected that the majority of the Bill and new regulations will take effect in 
mid-2022, following the second and third readings of the Bill before Parliament and Royal Assent.168 
3.198.   The Bill would updat e the existing regime in several ways. It would qualify the scope of 
protectable subject matter to new distinct varieties that are clearly distinguishable from any other 
variety whose existence is common knowledge as of the application date. It would recog nize 
essentially derived varieties and provide some recognition for an initial variety from which a new 
variety is predominantly derived. It would also expand exclusive rights to include importing and 
exporting169 propagating material of the protected varie ty, conditioning for the purpose of 
propagation, and stocking for the purpose of any restricted activity. It would also extend rights to 
harvested material in certain circumstances where the material was obtained through unauthorized 
use of propagating mat erial. The term of protection would also be increased from 20 to 25 years for 
woody plants. A public interest test would be introduced for the issuance of compulsory licences. A 
Māori Plant Varieties Committee would be created to make decisions on applicat ions concerning 
indigenous plant species and non -indigenous plant species of significance, among other 
responsibilities.170 
3.3.8.8   Industrial designs  
3.199.   No significant amendments were made to the Designs Act 1953 or the Designs 
Regulations  1954 during the review peri od. In 2016, the MBIE issued a report studying the role of 
copyright and registered designs in the creative sector.171 As industrially applied designs also receive 
automatic protection under the Copyright Act 1994, the ongoing review of that Act may impact the 
scope and legal basis for industrial design protection in the coming years.  
3.200.   Industrial design rights were increasingly sought in New  Zealand and by New  Zealand 
designers abroad during the review period. The annual number of industrial designs registere d by 
IPONZ increased 27% during the review period, with non -residents owning 73% -80% of newly 
registered rights in any given year. The annual number of designs registered abroad by 
New Zealanders tripled during the review period, from 2,163 in 2014 to 6,60 1 in 2020 (Table  A3.3). 
 
165 IPONZ  (2021),  Year in Review 2019/20 , p. 7.  
166 IPONZ (2020), Year in Review 2018/19 , p. 8.  
167 New Zealand  Parliament , Plant Variety Rights Bill . Viewed at: https:// www.parliament.nz/en/pb/bills -
and-laws/bills -proposed -laws/document/BILL_111271/plant -variety -rights -bill. 
168 MBIE, Background to the Plant Variety Rights Act Review . Viewed at: 
https://www.mbie.govt.nz/business -and-employment/business/ intellectual -property/plant -variety -rights/plant -
variety -rights -act-review/background -to-the-plant-variety -rights -act-review/ . 
169 Although the PVR Act 1987 does not specify an export right, the Court of Appeals has held that 
conduct taken in New  Zealand  to facilitate the export of protected varieties could diminish a right 
holder's  enjoyment of its exclusive rights, and in this manner constitute infringement. Haoyu Gao v Zespri 
Group Ltd  2021 NZCA 442; Winchester International (NZ) Limited v Cropmark Seeds L imited CA  226/04, 
5 December  2005.  
170 New Zealand  Parliament , Plant Variety Rights Bill . Viewed at: https://www.parliament.nz/en/pb/bills -
and-laws/bills -proposed -laws/document/BILL_111271/plant -variety -rights -bill. 
171 MBIE (2016) , Copyright and the Creative Sector . Viewed at: 
https://www.mbie.govt.nz/assets/527e65d882/copyright -and-the-creative -sector -december -2016.pdf . WT/TPR/S/426 /Rev.1  • New Zealand  
- 86 - 
  3.3.8.9   Trademarks  
3.201.   Trademarks remain protectable and enforceable in New  Zealand under the common law tort 
of passing off, the Fair Trading Act 1986, the Trade Marks Act 2002, and the Trade Marks 
Regulations  2003. Several amendments came into force during the review period.  
3.202.   The Regulatory Systems (Economic Development) Amendment Act 2019172 amended several 
provisions of the Trade Marks Act. The grace period for restoring an expired registration was reduced 
from 12 to 6 month s. Amendments also affirmed that a person who owns a certification trademark 
cannot register a trademark for goods or services of the kind certified – or vice -versa. Clarifications 
were also made regarding the absence of discretion on the part of the Trade  Marks Commissioner 
to not revoke a trademark registration when grounds for non -use had been established and no 
special circumstances outside of the trademark owner's control existed. These non -use amendments 
followed a 2017 Supreme Court decision, which a lso clarified that use of a registered mark in a 
different form does not constitute "genuine use" of the mark for revocation purposes.173 
3.203.   In 2020, the Trade Marks Regulations 2003 were amended to reduce application and renewal 
fees. The amendments also esta blished a flat NZD  50 fee for pre -application trademark advice.174 
3.204.   Trademark activities at IPONZ and by New  Zealanders seeking protection abroad steadily 
increased during the review period. The annual number of applications received and trademarks 
registere d by IPONZ increased 40% and 31%, respectively, from 2014 to 2020 . 2020 saw a possibly 
pandemic -related surge in resident applications and registrations. In any given year, 59%-70% of 
applications to, and registrations by, IPONZ came from foreign applicant s. The annual number of 
trademark applications sought by, and registrations granted abroad to , New Zealanders increased 
50% from 2014 to 2019, before declining in 2020 during the COVID -19 pandemic (Table  A3.3). 
In 2019, the top five industries for which Ne w Zealand businesses filed trademark applications 
through the WIPO Madrid System for protection abroad were: (i)  services for business and retail 
services; (ii)  electronics and computers; (iii)  pharmaceuticals, supplements and baby foods; 
(iv) scientific a nd engineering services and software design; and (v)  honey, confectionery and ice 
cream.175 
3.3.8.10   Geographical indications  
3.205.   In 2017, the Geographical Indications (Wine and Spirits) Registration Act 2006 (GI Act)176, 
as amended by the Geographical Indications (Wine and Spirits) Registration Amendment 
Act 2016177, entered into force and established a registration system for wine and spirit GIs. To be 
registered, a  GI must indicate that the wine or spirit originates from a defined area from which its 
quality, reputation, or other characteristic is essentially attributable. Misuse of a registered GI for 
wines and spirits that do not originate from the area indicated is prohibited, even where the true 
place of origin is provided, when the GI is used in tr anslation, or when it is accompanied by words 
such as "kind", "type", "style", or "imitation". Common or generic terms are not protectable, and an 
exception is available for prior continuous use of a registered GI.178 
3.206.   In general, conflicts between trademark s and GIs in New  Zealand are governed by a "first in 
time, first in right" approach. A GI that is identical to a trademark for identical goods or services 
must not be registered. A GI that is similar, as opposed to identical, and/or used on similar, as 
opposed to identical, goods or services, must be denied registration if its use is likely to deceive or 
confuse. A GI that conflicts with an earlier registered trademark may be registered, however, if 
the GI can coexist with the registered trademark, taking i nto consideration the GI's history of good 
 
172 WTO d ocument IP/N/1/NZL/20 , IP/N/1/NZL/G/6, IP/N/1/NZL/T/10, IP/N/1/NZL/P/13, 9  April 2021. 
173 Crocodile International P TE Ltd v Lacoste  [2017] NZSC 14. Viewed at: 
https://www.courtsofnz.govt.nz/assets/cases/2017/sccil.pdf .  
174 Trade Marks Amendment Regulations 2019, WTO document IP/N/1/NZL/17 , IP/N/1/NZL/T/8,  
8 April 2021. 
175 IPONZ (2021), Year i n Review 2019/20 , p. 6.  
176 WTO d ocument IP/N/1/NZL/9 , IP/N/1/NZL/G/3, 25  March  2021. 
177 WTO d ocument IP/N/1/NZL/12 , IP/N/1/NZL/G/4, 8  April 2021 . 
178 GI Act 2006, Sections 6(1), 12, 25 , and 29 ; and WTO document IP/N/1/NZL/9 , IP/N/1/NZL/G/3, 
25 March  2021. WT/TPR/S/426 /Rev.1  • New Zealand  
- 87 - 
  faith use in New  Zealand, its recognition as a GI in New  Zealand, and the legitimate interests of the 
trademark owner and third parties, among other factors.179 
3.207.   The Geographical Indications (Wine and Spirits) Regis tration Regulations 2017180 set forth 
examination and registration procedures and the process for establishing the GI register. 
Applications are submitted to IPONZ, which undertakes an examination of the GI. If the application 
is accepted, IPONZ advertises the acceptance in its jour nal, thus triggering a three -month opposition 
period. In the absence of opposition, the GI is registered. Registration is initially effective for 5  years, 
after which it may be renewed at 10 -year intervals. In 2020, amendments to the GI Act introduced 
a six-month grace period for expired GI registrations.181 
3.208.   As of December 2021, New  Zealand had registered 20 GIs for wine: 18 from New  Zealand, 
1 from France (Champagne), and 1 from the United  States (Napa Valley). Three GIs have been 
registered for spirits (Co gnac, Pisco (from Peru), and Scotch Whisky).182 The register also includes 
three "enduring" permanent GIs, as required by the Act: New  Zealand, North  Island, and 
South  Island.183 
3.3.8.11   Copyright and related rights  
3.209.   The Copyright Act 1994, Copyright (General Matters ) Regulations 1995, Copyright (Border 
Protection) Regulations 1994, and Copyright (Infringing File Sharing) Regulations 2011 continue to 
provide the legal and regulatory basis for copyright protection and enforcement in New  Zealand. The 
Copyright Act and a ssociated regulations were amended on several occasions during the review 
period.  
3.210.   The portions of the CPTPP Amendment Act 2018 that have entered into force strengthened 
the related rights of performers by extending economic and moral rights, similar to tho se of copyright 
owners, to performers. Such moral rights include the right to be identified as a performer, and the 
right to object to derogatory treatment of live and recorded performances. For sound recordings (or 
phonograms), performers also now have ri ghts to prevent the commercial exploitation of recordings 
through copying, issuing to the public, and communicating to the public (e.g. broadcasting).184 
Provisions of the Copyright Act related to copyright management information and technological 
protectio n measures (TPMs) were also strengthened. However, amendments that would make 
circumventing a TPM or providing TPM circumvention devices or services copyright infringement 
have not entered into force. These and other more extensive amendments in the CPTPP Amendment 
Act, including longer terms of protection, have been postponed in light of the departure of 
the United  States from the Trans -Pacific Partnership Agreement and an ongoing review of 
New Zealand's copyright regime.185 
3.211.   The Copyright (Marrakesh Treaty Implementation) Amendment Act 2019 implemented 
New Zealand's obligations under the WIPO Marrakesh Treaty. The Copyright Act was amended to 
permit authorized entities, namely schools, libraries, and certain charitable entities, to make and 
provide accessibl e format copies of works to persons who have a print disability. Authorized entitles 
may also reproduce, distribute, import, and export accessible format copies of copyright works 
without the copyright owner's permission. The Act also permits a person who has a print disability, 
or is acting on behalf of such a person, to make or import an accessible format copy of a copyrighted 
 
179 GI Act 2006, Sections 14 -18 and 30, WTO document IP/N/1/NZL/9 , IP/N/1/NZL/G/3, 25  March  2021.  
180 WTO d ocument IP/N/1/NZL/14 , IP/N/1/NZL/G/5, 8  April 2021 . 
181 Regulatory Systems (Economic Development) Amendment Act 2019, Part VII, WTO documen t 
IP/N/1/NZL/20 , IP/N/1/NZL/G/6, IP/N/1/NZL/T/10, IP/N/1/NZL/P/13, 9  April 2021 . 
182 IPONZ , Geographical Indications Register . Viewed at: https://www.iponz.go vt.nz/about -
ip/geographical -indications/register/?sort=alphabet . 
183 GI Act 2006, Section 6A, WTO document  IP/N/1/NZL/9 , IP/N/1/NZL/G/3, 25  March  2021. 
184 CPTPP Amendment Act 2018, Sections 18 -24, WTO document IP/N/1/NZL/15 , IP/N/1/NZL/C/8, 
IP/N/1/NZL/P/10, IP/N/1/NZL/T/7, IP/N/1/NZL/O/1, 8  April 2021 . 
185 Comprehensive and Progressive Agreement for Trans Pacific Partnership Amendment Act 2018 
Commencement Order 2018, WTO document IP/N/1/NZL/19 , IP/N/1/NZL/C/10, IP/N/1/NZL/P/12, 
IP/N/1/NZL/T/9,  9 April 2021 . WT/TPR/S/426 /Rev.1  • New Zealand  
- 88 - 
  work for the exclusive use of the person who has the print disability.186 Related amendments were 
made to the Copyright (General Ma tters) Regulations 1995.  
3.212.   In 2016, the MBIE reported on a study it conducted on the role of copyright and registered 
designs in the creative sector.187 The following year, the Government launched a review of 
New Zealand's copyright regime in light of the tec hnological changes that have occurred since the 
last significant review was undertaken in 2004. From November  2018 to April 2019, the MBIE 
conducted public consultations.188 The review may be impacted by a new 
United  Kingdom -New Zealand FTA, which was signe d in early 2022 and would oblige New  Zealand 
to make certain changes to its copyright system.189 
3.3.8.12   Enforcement  
3.213.   New Zealand notified responses to the Checklist of Issues on Enforcement to the TRIPS 
Council in 1997.190 It has not submitted any updates since.  
3.214.   Judicial action against IP infringement may be initiated by persons with a direct interest, 
such as the registered proprietor in the case of patents, trademarks, and designs, or the IPR owner 
in the case of copyright. Those who registered a GI or benefit from  it may take action against its 
misuse.191 
3.215.   Various agencies and courts have jurisdiction over IPR disputes. The IPONZ Hearings Office 
is a specialist tribunal that handles patent, trademark, and industrial design oppositions and 
applications for revocation,  cancellation, and declarations of invalidity. The Copyright Tribunal hears 
disputes involving licensing schemes offered by copyright management organizations. It also 
determines claims of copyright infringement arising from illegal file sharing.192 Its ope rations were 
modernized during the review period by the Tribunals Powers and Procedures Legislation Act 2018.193 
District Courts, the High Court, the Court of Appeal, and the Supreme Court have jurisdiction in 
civil IP infringement cases.  
3.216.   As part of an omni bus bill to enable digital interactions, minor revisions to the Patents 
Act 2013, Trade Marks Act 2002, Copyright Act 1994, Designs Act  1953, and Fair Trading Act 1986 
took effect in 2018 to facilitate the service of notices and other communications by IPO NZ and 
the NZCS via email.194 Amendments to the Patents Regulations 2014, Trade Marks Regulations 2003, 
and Designs Regulations 1954, permitting an address for service in Australia, came into effect the 
 
186 Copyright (Marrakesh Treaty Implementation) Amendment Act 2019, WTO document IP/N/1/NZL/21 , 
IP/N/1/NZL/C/11, 9  April 2021 . 
187 MBIE (2016) , Copyright and the Creative Sector.  
188 The issues paper, submissions received, and a summary of submiss ions are available online. MBIE , 
Review of the Copyright Act 1994: Issues Paper . Viewed at: https://www.mbie.govt.nz/have -your-say/review -
of-the-copyright -act-1994-issues -paper/ . 
189 MFAT , New Zealand -United Kingdom Free Trade Agreement . Viewed at: 
https://www.mfat.govt.nz/en/trade/free -trade-agreements/free -trade -agreements -under -negotiation/new -
zealand -united -kingdom -free-trade -agreement/ . See also IPONZ  (2021), " New Zealand and United  Kingdom 
Reach Agreement in Principle on Comprehensive Free Trade Agreement ", 1 November . Viewed at: 
https://www.iponz.g ovt.nz/news/new -zealand -and-united -kingdom -reach -agreement -in-principle -on-
comprehensive -free-trade-agreement/ .  
190 WTO d ocument IP/N/6/NZL/1 , 24 February  1997. 
191 Misuse of a registered GI that is not true to origin is a breach of the misleading conduc t provisions of 
the Fair Trading Act 1986, and the provisions of that Act on enforcement and remedies apply. GI  Act 2006, 
Section  33, WTO document IP/N/1/NZL/9 , IP/N/1/NZL/G/3, 25  March 2021 . See Fair Trading Act 1986, Part  5. 
Viewed at: https://www.legislation.govt.nz/act/public/1986/0121/latest/DLM96439.html .  
192 Ministry of Justice , Copyright . Viewed at: https://www.justice.govt.nz/tribunals/copyright/ . 
193 Tribunals Powers and Procedures Legislation Act 2018, WTO document IP/N/1/NZL/16 , 
IP/N/1/NZL/C/9, 8  April 2021 . 
194 Electronic Interactions Ref orm Act 2017, WTO document IP/N/1/NZL/13 , IP/N/1/NZL/C/7, 
IP/N/1/NZL/D/4, IP/N/1/NZL/P/9, IP/N/1/NZL/T/6, 8  April 2021 . WT/TPR/S/426 /Rev.1  • New Zealand  
- 89 - 
  same year.195 Similar changes were made separately in 2019 to permit service to Australian 
addresses under the PVR Act 1987.196 
3.217.   New Zealand is about as likely to export counterfeit products as comparable developed 
economies197, and was ranked fourth in The Economist's Global Illicit Trade Environment Index.198 
Aggrieved IP right holders may lodge notices with the NZCS under the Trade  Marks Act 2002 and 
the Copyright Act 1994 requesting the NZCS to intercept pirated copies and counterfeit goods. As 
of 2020, ri ght holders no longer need to provide a security of NZD  5,000 when they file a notice. As 
of 2018, the NZCS may also temporarily detain suspected counterfeit goods and pirated copies 
destined for either import or export ex officio , with reasonable cause.199 
3.218.   Both the number of trademark and copyright -related goods intercepted by the NZCS and the 
number of interception incidents declined steeply from 2014 to 2019. In 2014, 44,735  items were 
intercepted during 359  separate incidents, compared to 6,954  items int ercepted during 34  incidents 
in 2019. The number of incidents occurring at mail centres declined particularly sharply during the 
same period, from 245 in 2014 to 4 in 2019 (Table  3.18). The reason for these declines is unknown, 
but may be due to a change i n behaviour by a small number of traders. New  Zealand has not 
traditionally been a top destination market for IP infringing goods, as it is a small market that is 
geographically isolated from  other countries with relatively high transport and logistic cost s. 
Table 3.18 Number of IP items intercepted and IP interception incidents, 2014 -19 
 
2014  2015  2016  2017  2018  2019  
Items  44,735  29,725  68,055  20,637  22,072  6,954  
Incidents  359 223 60 113 80 34 
- mail centre  245 160 24 54 21 4 
- CCAa 98 54 28 48 52 24 
- airport  7 8 6 9 4 5 
- other  9 1 2 2 3 1 
a Customs Controlled Area: a secure and controlled environment in which the activities that take place 
are monitored or conducted by the NZCS.  
Source:  NZCS, Good Intercepted . Viewed at: https://www.customs.govt.nz/about -us/statistics/non -drug-
interceptions/goods -intercepted/ . 
3.219.   New Zealand's creative and broadcasting industries have been impacted by digital piracy. 
Two industry -commissioned 2018 reports found that 10% -11% of New  Zealanders "normally" 
stream pirated content, although there is some evidence that these numbers may b e declining due 
to improved access to free and paid material on -demand. Another study found that nearly 25% of 
New Zealand Internet users download infringing copies of music, with 20% having used stream 
ripping in the preceding three months. The industries  have encouraged the Government to pursue 
site-blocking legislation that would be effective against both local and off -shore websites and to ban 
the import and sale of illicit streaming devices. They have also suggested narrowing the existing 
Internet serv ice provider liability safe harbour provisions, which they claim have been abused by 
online intermediaries, including search engines and social media platforms, to commercially exploit 
unlicensed copyrighted works.200 
 
195 Patents Amendment Regulations 2018. Viewed at: 
https://www.legislation.govt.nz/regulation/public/2018/0034/latest/whole.html ; Trade Marks (Addresses in 
Australia) Amendment Regulations 2018. Viewed at: 
https://www.legislation.govt.nz/regulation/public/2018/0035/latest/whole.html#d56e36 ; and Designs 
Amendment Regulations 2018. Viewed at: 
https://ww w.legislation.govt.nz/regulation/public/2018/0036/latest/LMS11771.html .  
196 Regulatory Systems (Economic Development) Amendment Act 2019, Part 11, WTO document 
IP/N/1/NZL/20 , IP/N/1/NZL/G/6 IP/N/1/NZL/T/10, IP/N/1/NZL/P/13, 9  April 2021 . 
197 OECD/EUIPO  (2019) , Trends in Trade in Counterfeit and Pirated Goods , p. 74. Viewed at:  
https://www .oecd -ilibrary.org/docserver/g2g9f533 -
en.pdf?expires=1605787902&id=id&accname=ocid195767&checksum=3A346901A2AC2570117C0E3D2921899
A. 
198 The Economist  (2018) , The Global Illicit Trade Environment Index . Viewed at: 
http://illicittradeindex.eiu.com/ . 
199 CPTPP Amendment Act 2018, Sections 10 and 96, WTO document IP/N/1/NZL/15 , IP/N/1/NZL/C/8 
IP/N/1/NZL/P/10, IP/N/1/NZL/T/7 IP/N/1/NZL/O/1, 8  April 2021 . 
200 MBIE, Review of th e Copyright Act 1994: Issues Paper .  WT/TPR/S/426 /Rev.1  • New Zealand  
- 90 - 
  3.220.   Once civil infringement has been establ ished, available remedies include injunctions and 
compensatory damages or an accounting of profits. The CPTPP Amendment Act 2018 expanded and 
strengthened the available remedies for trademark and copyright infringement. Courts may now 
grant additional dama ges for not only copyright infringement, but also trademark infringement, as 
justice requires, taking into account all of the circumstances, including the flagrancy of the 
infringement and any benefits accruing to the defendant.201 Barring exceptional circu mstances, 
courts must also now order the destruction of counterfeit202 goods, rather than simply the removal 
of the infringing trademark from the goods.203 As of 2018, monetary awards ordered by the 
Copyright Tribunal may include interest, as compensation fo r the delay in payment.204 
3.221.   The New  Zealand Police, the MBIE, and the NZCS may investigate copyright piracy and 
trademark counterfeiting offences. Within the review period, no prosecutions of these offences were 
initiated. The CPTPP Amendments Act 2018 expan ded the scope of criminal prosecution for copyright 
infringement to include certain violations of performers' rights and increased the maximum penalties 
for making, dealing with, using, or copying illicit recordings to a fine of NZD  150,000 or five years' 
imprisonment.205 These maximum penalties now match those available for criminal violations of the 
Trade Marks Act 2002. In 2020, the New  Zealand Supreme Court interpreted the criminal provisions 
of the Copyright Act 1994 to be technologically neutral, and to encompass inf ringing digital files.206 
3.3.8.13   IP matters relating to COVID -19 
3.222.   New Zealand has not amended any of its IP laws or regulations specifically in response to 
the COVID -19 pandemic.  
3.223.   New Zealand permits compulsory licensing and Crown use of patented inventions in speci fied 
circumstances. T hree years from the date of patent grant, or four years from the filing date, 
whichever is later, any interested person may submit an application to the High Court for a 
compulsory licence predominantly to supply the domestic market if  the patented invention is not 
being supplied or is not being supplied on reasonable terms in New  Zealand. New Zealand has 
implemented the special compulsory licensing system for the export of medicines set forth in 
Article  31bis and the Annex to the TRIPS  Agreement. The High Court may order the grant of a 
compulsory licence for the production and export of a patented pharmaceutical product or process 
to an eligible importing country to address a serious public health problem.207 New Zealand has 
opted out of  using the regime as an importer.208 Remuneration to the patent holder and previous 
efforts to obtain a licence from the patentee on reasonable commercial terms and conditions are 
among the general requirements for the issuance of a compulsory licence.209 No compulsory licences 
have been granted for patents since 2009.  
 
201 CPTPP Amendment Act 2018, Section  93, WTO document IP/N/1/NZL/15, IP/N/1/NZL/C/8, 
IP/N/1/NZL/P/10, IP/N/1/NZL/T/7, IP/N/1/NZL/O/1, 8  April 2021 . 
202 The CPTPP Amendment Act defines counterfeit goods, in relation to a re gistered trademark, as 
infringing goods in respect of which a trademark is registered bearing either an identical sign to the registered 
trademark or a similar sign whose use would be likely to deceive. CPTPP Amendment Act 2018, Section  95. 
Compare TRIPS  Agreement , Article  51, fn  14. 
203 CPTPP Amendment Act 2018, Section  103(3A), WTO document IP/N/1/NZL/15, IP/N/1/NZL/C/8, 
IP/N/1/NZL/P/10, IP/N/1/NZL/T/7, IP/N/1/NZL/O/1, 8  April 2021 . 
204 Copyright Amendment Act 2016, Section 4, WTO document IP/N/1/NZL/8 , IP/N/1/NZL/C/6, 
25 March  2021. 
205 CPTPP Amendment Act 2018, Section 35, WTO document IP/N/1/NZL/15, IP/N/1/NZL/C/8, 
IP/N/1/NZL/P/10, IP/N/1/NZL/T/7, IP/N/1/NZL/O/1, 8  April 2021 . 
206 Kim Dotcom v The United  States  of America  [2020] NZSC 120. Vie wed at: 
https://www.courtsofnz.govt.nz/assets/cases/2020/2020 -NZSC -120.pdf .  
207 Patents Act 2013, Sections 169 -174, WTO document IP/N/1/NZL/5 , IP/N/1/NZL/P/5, 
23 February  2015. 
208 TRIPS  Agreement  (as amended on 23  January  2017), Annex , para. 1(b), fn 3. 
209 Patents Act 2013, Sections 175 -176, WTO document IP/N/1/NZL/5, IP/N/1/NZL/P/5, 
23 February2015.  WT/TPR/S/426 /Rev.1  • New Zealand  
- 91 - 
  3.224.   Any government department or third party authorized by the Government may exploit an 
invention for which a patent has been either granted or applied for, for the services of the Crown, 
after th e complete specification relating to a patent application has been opened to public inspection 
(18 months from the earliest priority date). Such use must be non -exclusive and may be for any 
purpose that appears necessary or desirable to: (i)  avoid prejudic e to the security or defence of 
New Zealand; or (ii)  assist in emergency management during a declared state of emergency.210 
3.225.   All new and changed medicines must be approved by MedSafe before they may be 
distributed, sold, or advertised in New  Zealand. MedSaf e bases its decisions upon information and 
data regarding safety, quality, and efficacy submitted by the applicant. MedSafe must take 
reasonable steps to protect the confidentiality of confidential information submitted for an innovative 
(new active ingred ient) medicine application and may not use it to assess other applications (e.g. a 
generic version of a previously approved drug) for five years following the date of approval or refusal. 
An exception is available that permits use or disclosure of the data  when necessary to protect the 
health or safety of the public. Data exclusivity is not available for information submitted in connection 
with applications for new uses of a known drug.211 
3.226.   Parallel imports of genuine IP -protected goods are generally permitte d in New  Zealand.212 
There are no explicit limitations on the parallel import of pharmaceuticals or other health 
technologies. However, there are a number of practical limitations that make the parallel import of 
such goods unlikely. For example, a licence is needed to import pharmaceuticals as well as for 
handling and wholesaling medicines and medical devices. Additionally, importers are required to 
produce specifications and test data for each batch of medicines.213 Access to such information may 
be limited where the importer is not authorized by the manufacturer.  
3.227.   Amidst pandemic -related economic challenges, New  Zealand has endeavoured to protect its 
R&D base by making additional investments in CRIs and CI, in order enable them to maintain R&D 
capabi lity despite falling commercial revenue. It also established a temporary R&D loan scheme for 
R&D-performing businesses affected by COVID -19, enhanced the refundability of the R&D tax 
incentive, and funded dedicated COVID -19-related R&D projects through the  COVID -19 Innovation 
Acceleration Fund and the Health Research Council.214 
3.228.   Prior to the pandemic, IPONZ had already adopted and implemented a 100% online business 
model and issued guidelines to encourage the use of video conferencing at hearings.215 Although  its 
online services continued to operate normally during the pandemic, its operations were impacted, 
particularly during lockdown, adding to pre -existing patent and trademark backlogs and delays in 
scheduling hearing dates. IPONZ has recruited additional staff and is trialling a new scheduling 
initiative to address these issues.216 
 
210 Patents Act 2013, Sections 179 -188, WTO document IP/N/1/NZL/5 , IP/N/1/NZL/P/5 , 
23 February  2015. 
211 Medicines Act 1981, Sections 20 and 23A -23C. Viewed at: 
https://www.legislation.govt.nz/act/public/1981/0118/latest/whole.html#DLM55085 .  
212 NZCS , Copyright and Trade Marks . Viewed at: 
https://www.customs.govt.nz/business/import/import -prohibited -and-restricted -imports/copyright -and-trade -
marks/ .  
213 Medicines Act 1981. Viewed at: 
https://www.legislation.govt.nz/act/public/1981/0118/latest/DLM53790.html ; and  Misuse of Drugs Act 1975. 
Viewed at: https://www.legislation.govt.nz/act/public/1975/0116/latest/DLM436101.html .  
214 COVID -19 Response (Taxation and Social Assistance Urgent Measures) Act 2020. Viewed at: 
https://www.legislation.govt.nz/act/public/2020/0008/latest/whole.html .  
215 IPONZ  (2020), " Hearings Evidence Guidelines and Status of Hearings by Attendance under 
COVID -19", 16 July. Viewed at: https://www.iponz.govt.nz/news/hearings -evidence -guidelines -and-status -of-
hearings -by-attendance -under -covid-19/.  
216 IPONZ (2021), Year in Review 2019/20 , p. 8; and IPONZ (2021), "Trial Period for New Scheduling 
Initiative for Hearings", 7  April. Viewed at: https://www.iponz.govt.nz/news/trial -period -for-new-scheduling -
initiative -for-hearings/ .  WT/TPR/S/426 /Rev.1  • New Zealand  
- 92 - 
  3.229.   IPONZ has adapted its policies and procedures in light of pandemic -associated business 
disruptions. Three -month extensions were automatically applied to various deadlines falling  from 
15 April to 31  July 2020, including deadlines for requesting examination for patent applications, 
responses to patent or design examination or trademark compliance reports, and evidence filing. 
Since then, deadline extensions have been available by r equest and on a case -by-case basis. The 
Hearings Office has also temporarily permitted provisional filing of unsworn evidence and has 
suspended the requirement to submit hard copy bundles of authorities and documents.217 
 
217 IPONZ  (2020), " Hearings Evidence Guidelines and Status of Hearings by Attendance 
under  COVID -19", 16 July.  WT/TPR/S/426 /Rev.1  • New Zealand  
- 93 - 
  4  TRADE POLICIES BY S ECTOR  
4.1  Agriculture, Forestry, and Fisheries  
4.1.1   Overview  
4.1.  New Zealand is a net exporter of agro -food products, notably dairy, meat, and wool, for which 
it is among the top global exporters. Agriculture products (WTO definition) accounted for 65.7% of 
total merchandise exports in  2021 (compared with 61.1% in  2015), and11.5% of merchandise 
imports in 2021 (11.6% in  2015) ( Tables  A1.1 and A1.2 ). Agricultural production dropped in 2015 
and 2016 but has picked up since 2017, supported by good performance in sheep , beef, and dairy 
cattle farming (Table  4.1). The authorities note that this has been driven by strong consumer 
demand coupled with the global protein shortage. Its contribution to the GDP stood at 6.2% 
in 2019/20 ( Chart  1.1). Sectoral employment, which is  on a downward trend, accounted for 5.84% 
of total employment in 2019.1 
Table 4.1 Agriculture production by main categories, 2015 -20 
(NZD million)  
Product categories  2015  2016  2017  2018  2019  2020  
Horticulture and fruit growing  1,627  1,833  2,110  2,067  2,244  2,358  
Sheep, beef cattle and grain farming  2,988  2,790  3,001  3,753  3,868  3,921  
Dairy cattle farming  3,124  2,532  5,436  6,156  5,969  6,930  
Poultry, deer and other livestock farming  500 535 562 634 577 597 
Forestry and logging  1,294  1,560  1,700  2,100  2,051  1,630  
Fishing and aquaculture  355 452 451 473 506 547 
Total 9,888  9,702  13,260  15,183  15,215  15,983  
Source:  Information provided by the authorities.  
4.2.  Over the period 2007 -16, growth in New Zealand's total factor productivity in 
agriculture  (0.7%) lagged behind the OECD average (1.6%). As a consequence, New  Zealand's 
growth in agricultural output has relatively underperformed.2 There are a number of strategies aimed 
at increasing product ivity, including "Fit for a Better World" , which set actions to bring together 
opportunities that the Government considers will accelerate the productivity, sustainability, and 
inclusiveness of the primary sector.3 
4.3.  The Ministry for Primary Industries (MPI ) is the lead government agency for the food and fibre 
sectors.4 In 2018, four new units were established within the MPI (Biosecurity New  Zealand, 
Fisheries New  Zealand, New  Zealand Food Safety, and New  Zealand Forest Service). Subsequently, 
another unit,  Agriculture and Investment Services, was established in  2019. According to the 
authorities, the new units provide increased focus on some of the MPI's core responsibilities.  
4.1.2   Border measures  
4.1.2.1   Import measures  
4.4.  Tariffs on agricultural products (WTO definition)  are generally low, with an average of 1.8% 
in 2021, slightly up from 1.7% in 2014. Imports of agricultural products are subject to various other 
taxes, including the Goods and Services Tax ( Section  3.1.4). New  Zealand does not administer any 
tariff rate q uotas despite the provisions in its WTO Schedule of Commitments, which allow it to do 
so for imports of certain agricultural products (apples, pears, and hop cones). The applied MFN tariffs 
on these products are zero.5 
 
1 World Bank, Employment in Agriculture . Viewed at: 
https://data.worldbank.org/indicator/SL.AGR.EMPL.ZS?locations=NZ .  
2 OECD (20 21), Agricultural Policy Monitoring and Evaluation 2021. Viewed at: 
https://www.oecd.org/publications/agricultural -policy -monitoring -and-evaluation -22217371.htm . 
3 MPI, Fit for a Better World . Viewed at: https://www.mpi.govt.nz/dmsdocument/41031 -Fit-for-a-
Better -World -Accelerating -our-economic -potential . 
4 The MPI brings together six regulator y systems that underpin the food and fibre industries, 
i.e. agriculture, forestry, fisheries, food safety, biosecurity, and animal welfare.  
5 WTO document G/AG/N/NZL/90, 1  April 2015.  WT/TPR/S/426 /Rev.1  • New Zealand  
- 94 - 
  4.5.  Under the Biosecurity Act  1993, anim al and plant products (risk goods) cannot be imported 
into New  Zealand unless an import health standard (IHS) has been developed for that product. 
IHSs state the requirements that have to be met before importing risk goods into New  Zealand 
(Section  3.3.4.3 ). Regarding food products, the MPI publishes on a regular basis a Notice that sets 
out the safety requirements to be met when importing such products ( Section  3.3.4.2 ). 
4.6.  It was noted during the previous Review, that industry organizations, including those in 
agriculture, can, in accordance with the Commodity Levies Act  1990, collect producer levies on 
commodities to fund a range of industry good activities including market research, quality assurance, 
and plant and animal health protection. There were 32  commodity levy orders (in addition to 2  levy 
orders under the Wine Act) in force in  2021. With very few exceptions, levies may not be spent on 
commercial and trading activities. To collect levies, industry organizations must obtain a new 
mandate every six ye ars through a referendum among producers. The Commodity Levies Act enables 
levies to be imposed on imports provided that the rate is equal to or less than that charged on the 
domestic product, those levy payers will derive benefits from the levy, and the l evy order is not 
contrary to New  Zealand's international obligations. No such levies have been imposed thus far.  
4.1.2.2   Export measures  
4.7.  Various regulations are in place for exports of some agricultural products. The Animal Products 
Act 1999 requires registration of all exporters of any animal product with the MPI before they can 
export from New  Zealand. New  Zealand also continues to administer export licences for some meat 
products to accommodate tariff quotas imposed by some trading partners. Current quota alloca tion 
systems include EU sheep meat and goat meat quota, EU high -quality beef quota, US beef and veal 
quota, UK  sheep meat and goat meat quota, and UK high -quality beef quota. The Meat Board is in 
charge of establishing and operating quota allocation system s for quota markets, in accordance with 
the Meat Board Act  2004.  
4.8.  Restrictions on dairy exports to specific tariff quota markets were phased out by the end 
of 2010, ending the Fonterra Co -operative Group's exclusive rights to export to designated restricted 
markets. Currently, the MPI allocates licences for export of prepared edible fats to Japan; milk 
powder to the Dominican  Republic; butter, cheddar cheese, and cheese for processing to the 
European  Union; and cheddar, low -fat, certain types of co w's milk cheese, and American -type 
cheeses to the United  States.6 
4.9.  Export regulations continue to exist for kiwifruit, in accordance with the Kiwifruit Industry 
Restructuring Act (KIRA) 1999 and the Kiwifruit Export Regulations  1999. The relevant regulator y 
body, Kiwifruit New  Zealand (KNZ), grants an automatic, but not exclusive, right to Zespri to export 
kiwifruit to all markets other than Australia (Export Authorisation).7 All other traders wishing to 
export kiwifruit to markets other than Australia mus t get prior approval from KNZ. As per 
New Zealand's latest notification pursuant to Article  XVII:4(A) of the GATT  1994 and Paragraph  1 of 
the Understanding on the Interpretation of Article  XVII, Zespri exports a large share of 
New Zealand's total exports o f kiwifruit.8 
4.10.   The 2017 amendments to the Kiwifruit Export Regulations 1999 allow Zespri shareholders to 
set rules around maximum shareholding and eligibility for dividend payments, clarify the activities 
Zespri can undertake as a matter of core business, and enhance the independence and transparency 
of the industry regulator, KNZ. The Export Authorisation is reviewed annually by KNZ, and changes 
are advised to Zespri in January each year. Other roles of KNZ include monitoring and enforcing 
Zespri's complia nce with the Kiwifruit Export Regulations 1999 , including the measures that require 
Zespri to be transparent, and to not discriminate among kiwifruit growers. KNZ also ensures that 
other traders export kiwifruit in collaboration with Zespri (collaborative marketing)9, with a view to 
increasing the overall benefits to New  Zealand kiwifruit suppliers.  
 
6 New Zealand Customs Service, Export Prohibitions and Restrictions . Viewed at: 
https://www.customs.govt.nz/business/export/export -prohibitions -and-restrictions/ . 
7 Traders can export kiwifruit to Australia withou t prior approval from KNZ and independently 
from Zespri.  
8 WTO document G/STR/N/18/NZL, 2  July 2020.  
9 A collaborative marketing arrangement is defined in the Regulations as "an arrangement by which a 
person may export New  Zealand grown kiwifruit in collab oration with Zespri Group Limited (ZGL)".  WT/TPR/S/426 /Rev.1  • New Zealand  
- 95 - 
  4.11.   Regarding exports of horticultural products, the Horticulture Export Authority Act  1987 
provides a voluntary framework in which horticultural Product Groups ca n freely participate. Under 
the framework, the Horticulture Export Authority (HEA) serves as a statutory body providing a formal 
structure for cooperation and coordination. This takes the form of an export licensing system for 
Product Groups that choose to  come under the HEA structure. Each Group has the responsibility to 
develop an Export Marketing Strategy (EMS), i.e. an exporter wanting to export a product must 
comply to obtain a licence. The EMS is initially developed by the Product Group. The  HEA then 
provides guidance in the formulation, approval, and enforcement of EMS  requirements. Enforcement 
of EMS requirements on growers and packhouses is the responsibility of the Product Group, while 
enforcement on exporters is done by the HEA via the licence mec hanism. As of 30  September  2020, 
a total of 76 export licences issued by the HEA were in operation, held by 55 different entities across 
10 Product Groups.10 Approximately 4.5% of total fruit and vegetable exports by value fall under 
the HEA Act. Exports o f horticulture products that are outside the scope of the HEA and the Kiwifruit 
Export Regulations and that are not subject to specific export control legislation still have to meet 
relevant New  Zealand domestic legislative requirements as well relevant re quirements of importing 
parties.  
4.12.   The HEA is funded by its industry sector participants via statutory levies on Product Groups 
and fees on export licence holders (application fees and annual monitoring and compliance fees). 
During the review of the HEA Act in 2017, amendments were made, including introducing some 
flexibility in the exporter licensing regime by introducing multiple tiers of licence and by updating 
the fees and levies paid to the HEA, which had not been reviewed for over a decade.  
4.13.   New Zealand does not apply export subsidies for agricultural products.11 
4.1.3   Domestic support  
4.14.   New Zealand has a highly market -oriented agricultural sector. Support to agricultural 
producers is the lowest among OECD countries12, and accounted for an average of 0.7% of farmer 
receipts and 0.3% of the country's GDP during 2018 -20.13 New Zealand submitted its most recent 
domestic support notifications in 2021, covering financial year 2019/2020, and are provided for pest 
and disease control, investments in the country's agr icultural knowledge and innovation system, 
environmental programmes, relief payments, and infrastructural services.14 
4.15.   In addition, as part of New  Zealand's NZD  50 billion COVID -19 Response and Recovery 
Fund (CRRF), NZD  200.2  million was allocated to projec ts in, inter alia, training services, research, 
and pest and disease control.15 
4.1.4   Dairy industry  
4.16.   With exports of approximately NZD  17 billion per year (25% of total exports) and accounting 
for around 3% of GDP, the dairy industry represents a significant sha re of the economy. Important 
reforms were undertaken from  2009 to 2012, as highlighted in the previous Review.16 During the 
current review period, the dairy industry continued to undergo reforms with the aim of ensuring 
transparency and efficiency. As repo rted previously, the Dairy  Industry Restructuring Act (DIRA) 
allowed the creation of Fonterra Co -operative Group Limited. The Act has provisions to promote the 
efficient operation of dairy markets in New  Zealand by regulating the activities of Fonterra to ensure 
New Zealand markets for dairy goods and services are contestable. It also provides for the allocation 
of export certificates for dairy quotas imposed by importing countries (Section  4.1.2.2). In 
February  2018, the DIRA was amended  following a recommendation of the Commerce  Commission 
that the regulatory obligations on Fonterra should not expire. The amendments retain the DIRA 
 
10 The 10 Product Groups are Avocados, Blackcurrants, Buttercup Squash, Chestnuts, Kiwifruit to 
Australia, Persimmons, Summerfruit, Truffles, Tamarillos, and Walnuts. HEA, 2020 Annual Report . Viewed at: 
https://www.hea.co.nz/images/J018774_ -_HEA_Annual_Rpt_2020_FINAL_Emailable.pdf .  
11 WTO document G/AG/N/NZL/127, 3  August  2021.  
12 The methodology for calculating these indica tors is different from that used to calculate the 
aggregate  measure of support, and the two sets of data are neither compatible nor comparable.  
13 OECD (2021), Agricultural Policy Monitoring and Evaluation 2021 . Viewed at: 
https://www.oecd.org/publications/agricultural -policy -monitoring -and-evaluation -22217371.htm .  
14 WTO document G/AG/N/NZL/126, 26  February  2021.  
15 WTO document G/AG/N/NZL/122, 22  September  2020.  
16 WTO document WT/TPR/S/316/Rev.1, 12  October  2015.  WT/TPR/S/426 /Rev.1  • New Zealand  
- 96 - 
  regime for the time being, by preventing it from expiring and requiring a review of the need for the 
DIRA l egislation.  
4.17.   On 6 August  2020, following a comprehensive review of the DIRA and consultation with the 
dairy sector, the DIRA was amended to reduce some of the regulatory requirements on Fonterra, 
including by allowing it the discretion to accept or decline applications from new or returning farmers 
to become shareholders; clarifying that Fonterra can price differentiate on the basis of various 
on-farm performance matters, and refuse milk supply in circumstances where milk is non -compliant; 
and supporting and  encouraging better environmental performance of the dairy industry. The 
requirement for Fonterra to supply a limited quantity of milk to competing processors in order for 
them to get started has also been further reduced.  
4.1.5   Fisheries  
4.18.   New Zealand's fisheries industry has an important socio -economic and strategic importance. 
Commercial fishing (including aquaculture) employs approximately 13,500  people and contributes 
NZD 4.2 billion per year in economic activity. The country has a coast line of 15,100  km and hosts 
the world's fourth largest Exclusive Economic Zone of 1.3  million  km2. The Food and Agriculture 
Organization of the United Nations (FAO) has identified 16,000  marine species in New  Zealand 
waters, of which 130  species are commer cially fished.17 Approximately 400,000  tonnes of fish is 
harvested from New  Zealand's waters each year with a further 118,000  tonnes of aquacultural 
production. During 2019/20, there were approximately 860  registered fishing vessels in 
New Zealand, of whic h approximately 10 were foreign -owned . The authorities' current efforts in the 
fisheries industry seek to improve environmental performance and modernize fisheries 
management, i.e.  promote electronic monitoring of commercial catches, and management measure s 
that further protect New  Zealand's protected species from the effects of fishing.18 
4.19.   The legal framework has remained largely unchanged since the previous Review. The primary 
legislation for the management of fisheries is the Fisheries Act  1996. It provid es for the utilization 
of fisheries resources while maintaining their potential to meet the reasonably foreseeable needs of 
future generations. Fisheries New  Zealand, under the MPI, is responsible for its implementation.  
4.20.   The MPI, through its newly establis hed unit, Fisheries New  Zealand (Section  4.1.1), works to 
ensure that fishery resources are managed to provide the greatest overall benefit to 
New Zealanders. Fisheries New  Zealand's approach to maximize economic returns is enshrined in 
the Government's Fi sheries 2030 strategy, in place since  2019.19 The Strategy aims to make its 
aquaculture industry an NZD  3 billion per year industry by  2035, mainly through the promotion of 
innovative practices.20 
4.21.   Fisheries 2030 is implemented through, inter alia, ensuring  the sustainability of fish stocks by 
limiting catches to specific levels, using a Quota Management System (QMS). The QMS was 
extensively described in the previous TPR report.21 Through the QMS, Fisheries New  Zealand 
monitors, manages, and regulates fisher ies and fish stocks in New  Zealand and in the high seas 
(under international arrangements). A private entity, FishServe, operates some of the services 
required by the Fisheries Act and relevant regulations, such as administering fishing permits, fishing 
returns, registration of fishing vessels, Crown -held annual catch entitlement (ACE) and quota 
tenders, ACE and quota transfers, and invoicing and receiving fees and charges. There are 
currently  98 species (or species groups) listed in the QMS.  
 
17 FAO, Fishery and Aquaculture Country Profile. Viewed at:  
https://www.fao.org/fishery/en/facp/nzl?lang=en .  
18 Fisheries New  Zealand (2020), Aquatic Environment and Biodiversity Annual Review 2019 -20. 
Viewed  at: https://www.mpi.govt.nz/dmsdocument/44833 -Aquatic -Environment -and-Biodiversity -Annual -
Review -AEBR -201920 -A-summary -of-environmental -interactions -between -the-seafood -sector -and-the-aquatic -
environment .  
19 MPI, Fisheries 2030 . Viewed at: 
https://www.mpi.govt.nz/dmsdocument/5032/direct#:~:text=Fisher ies%202030%20provides%20that%20str
ategic,from%20New%20Zealand's%20fisheries%20resources.&text=The%20Ministry%20of%20Fisheries%20h
as,the%20New%20Zealand%20fisheries%20sector .  
20 MPI, Aquaculture Strategy . Viewed at: https://www.mpi.govt.nz/dmsdocument/15895 -The-
Governments -Aquaculture -Strategy -to-2025.  
21 WTO document WT/TPR/S/316/Rev.1, 12  October  2015.  WT/TPR/S/426 /Rev.1  • New Zealand  
- 97 - 
  4.22.   In order to fi sh commercially in New  Zealand waters, commercial fishers must, inter alia, 
register with the relevant authority, hold a commercial fishing permit, hold quota or have access 
to ACE under the QMS, and use a registered New  Zealand vessel that is on the Fishi ng Vessel 
Register. Foreign -owned fishing vessels may provide fishing services to New  Zealand fishing permit 
holders under demise charter terms provided they meet all conditions of New  Zealand vessel 
registration and flagging. All permitted fishers must ke ep records and regularly report 
catches,  fishing efforts, and landings. To fish commercially outside the New  Zealand 
Exclusive  Economic Zone (EEZ), a high seas fishing permit is required. The comprehensive 
requirements for commercial fishers are published by the authorities.22 New fish stocks added to 
the QMS are transferred to commercial fishers through public tender of quota shares, after provision 
is made for allocation of 20% of quota shares to Māori.  
4.23.   In accordance with the Fisheries Act 1996 and the Ov erseas Investment Act  2005, consent is 
required for foreign participation in fishing quota. The criteria for consent include that investment in 
fishing quota is in the national interest, i.e. implies benefits such as job creation, the introduction of 
new t echnology or business skills, and increased export receipts. A foreigner ( individual or company)  
is not allowed to have a 25% or more ownership or control interest in fishing quotas, without consent 
first being obtained from the relevant Ministers (i.e. Mi nister with responsibility for fisheries and the 
Minister of Finance). Under the Overseas Investment Act  2005, all overseas investments in fishing 
quota are defined as sensitive ( Section  2.4.1). Furthermore, since 1  May 2016, foreign -flagged 
charter fishing vessels fishing in New  Zealand waters (within the 200 -mile limit) are required to 
reflag as New  Zealand vessels pursuant to the Fisheries (Foreign Charter Vessels and Other Matters) 
Amendment Act  2014.  
4.24.   There are a number of funding opportunities av ailable to the fishing and aquaculture 
industries. The aquaculture planning fund supports regional councils to plan for sustainable 
aquaculture growth and development through, inter alia, creating zones for new consent applications 
and provisions for new s pecies for aquaculture.23 Several support programmes established in 
New Zealand's agricultural sector also translate into fisheries, mainly with respect to sustainable 
resources management.  
4.1.6   Environmental measures and sustainable management of resources  
4.25.   Nearly half of New  Zealand's greenhouse gas (GHG) emissions come from agriculture. The 
main source of agricultural emissions is methane from ruminant animals. The Government is taking 
steps towards addressing methane emissions, including through He Waka Ek e Noa, the Primary 
Sector Climate Action Partnership.24 
4.26.   The 2019 Climate Change Response (Zero Carbon) Amendment Act provides a domestic GHG 
emissions reduction target. This includes net zero emissions of all GHGs other than biogenic methane 
by 2050, and a  24% to 47% reduction below  2017 levels of biogenic methane emissions by  2050, 
including a 10% reduction by 2030. It also established the independent Climate Change Commission 
to provide expert advice and monitoring to help keep successive Governments on t rack to meet 
long-term goals.  
4.27.   Under the 2020 Climate Change Response (Emissions Trading Reform) Amendment Act, 
biogenic emissions from agriculture (methane and nitrous oxide) will be priced by 2025.  
4.28.   He Waka Eke Noa, the Primary Sector Climate Action Partne rship, a partnership between the 
Government, the primary sector, and Māori was established in 2019 to equip farmers to measure, 
manage, and reduce on -farm agricultural GHG emissions and enhance the sector's resilience to 
climate change.25 
 
22 MPI, Requirements for NZ Commercial Fishers . Viewed  at: https://www.mpi.govt.nz/fishing -
aquaculture/commercial -fishing/operating -as-a-commercial -fisher/req uirements -for-nz-commercial -fishers/ . 
23 MPI, Aquaculture Planning Fund . Viewed at: https://www.mpi.govt.nz/fishing -aquaculture/fishin g-
aquaculture -funding -support/aquaculture -planning -fund/ . 
24 MPI, He Waka Eke Noa – Primary Sector Climate Action Partnership . Viewed at: 
https: //www.mpi.govt.nz/funding -rural-support/environment -and-natural -resources/he -waka-eke-noa/. 
25 MPI, He Waka Eke Noa – Primary Sector Climate Partnership . Viewed at: 
https://www.mpi.govt.nz/funding -rural-support/environment -and-natural -resources/he -waka-eke-noa/. WT/TPR/S/426 /Rev.1  • New Zealand  
- 98 - 
  4.29.   New Zealand has a lso adopted several measures in line with resources management in 
agriculture. The 2020 Resource Management (National Environment Standards for Freshwater) 
Regulations prescribe environmental standards in relation to freshwater and set requirements for 
carrying out certain activities that pose a risk to freshwater and freshwater ecosystems.  
4.2  Energy  
4.30.   New Zealand's energy self -sufficiency rate stood at 75.7% in 2020, down from 81.2% in 2015. 
Total energy production followed the same pattern over that period. Th e shares of coal and oil in 
total energy production decreased dramatically between 2015 and 2020 (Table  4.2). The industrial 
and residential sectors remained the main energy consumers (Table  4.3). 
Table 4.2 Energy production and its breakdown by source, 2015 -20 
(Unit: PJ)   
Total 
energy 
production  Coal Oil Gas Hydro  Geothermal  Solar  Wind  Others  
2015  724.48  85.34  98.36  188.73  88.30  193.40  0.50 8.51 61.35  
2016  703.32  71.57  82.63  195.95  93.36  188.97  0.57 8.43 61.85  
2017  691.78  72.45  75.06  194.77  90.62  190.48  0.64 7.53 60.22  
2018  676.26  83.78  59.50  174.62  94.51  196.39  0.72 7.44 59.29  
2019  684.91  79.99  60.65  184.39  92.15  200.98  0.82 8.12 57.81  
2020  657.57  73.31  53.01  180.17  87.36  200.69  0.94 8.30 53.80  
Note:  PJ stands for petajoule or 278 gigawatt hours.  
Source:  Information provided by the authorities.  
Table 4.3 Total energy consumption by sector/user, 2015 -20 
Consumption (GWh) based 
on estimated sales  2015  2016  2017  2018  2019  2020  
Agriculture, forestry, and 
fishing  2,819  2,524  2,588  2,285  2,545  2,687  
Industrial  14,609  14,547  14,616  14,622  14,828  14,036  
Mining  405 362 418 450 450 416 
Food processing  2,437  2,507  2,663  2,776  2,807  2,873  
Wood, pulp, paper and 
printing  2,729  2,732  2,698  2,661  2,577  2,084  
Chemicals  775 819 866 780 801 764 
Basic metals  6,524  6,453  6,357  6,387  6,570  6,240  
Other minor sectors  1,739  1,674  1,616  1,568  1,624  1,659  
Commercial  9,456  9,460  9,435  9,492  9,520  9,175  
Residential  12,469  12,377  12,381  12,703  12,651  12,877  
Transport  83 91 91 94 110 100 
Unallocated onsite 
generation  1,309  1,233  821 772 665 566 
Source:  Information provided by the authorities.  
4.31.   The Ministry of Business, Innovation and Employment (MBIE) is in charge of formulating 
and implementing New  Zealand's energy policy. The Energy Efficiency and Conservation 
Authority  (EECA) is a public entity that encourages, promotes, and supports energy efficiency, 
energy conservation, and the use of renew able energy sources, as prescribed by the Energy 
Efficiency and Conservation Act  2000. Its activities include working with businesses to improve their 
energy productivity and use of sustainable energy to contribute to New  Zealand's GHG emission 
reduction t argets and assist New  Zealanders and public sector agencies to make smarter use of 
sustainable energy. According to the authorities, the EECA administers an NZD  219.5  million 
government fund to reduce GHG emissions and improve energy efficiency in the publ ic sector. It 
also administers the Technology Demonstration Fund, which provides co -investment to help 
businesses test new or under -utilized energy saving technologies and process improvements that 
could also benefit the wider sector.  
4.32.   New Zealand's interna tional commitments, in the context of the 2015 Paris 
Climate  Change  Agreement, consist of a target to reduce GHG emissions by 30% below 2005 levels 
by 2030. The country updated its pledge in 2021 and committed to reducing net emissions by 50% WT/TPR/S/426 /Rev.1  • New Zealand  
- 99 - 
  below gross 2 005 levels by 2030.26 Various strategies are also in place to serve its domestic targets 
(Section  4.1.6), including a goal to transition to net zero carbon emissions by  2050.27 The direction 
of the energy policy is set out in the New  Zealand Energy Strateg y 2011 -2021. According to the 
authorities, development of a replacement energy strategy is expected to commence in  2022.  
4.33.   The New  Zealand Energy Efficiency and Conservation Strategy 2017 -2022 (NZEECS) is the 
national strategy on energy efficiency.28 The str ategy builds on the New  Zealand Energy Strategy, 
the primary strategic plan, and provides a unified framework for government support and 
interventions over five years. Under the Strategy, specific targets are set for three priority areas: 
(i) a decrease in  industrial emissions intensity of at least 1% per annum on average between 2017 
and 2022, through renewable and efficient use of process heat; (ii)  the widespread use of electric 
vehicles so they make up 2% of the vehicle fleet by the end of  2021, to prom ote efficient and 
low-emissions transport; (iii)  and generation of 90% of electricity from renewable energy sources 
by 2025, through innovative and efficient use of electricity.  
4.34.   In 2019, the New  Zealand Government published a "Hydrogen Vision" to harness i ts hydrogen 
potential as a clean alternative to hydrocarbons in the pursuit of decarbonization.  
4.35.   The NZETS continues to be a key part of New  Zealand's overall energy emissions reduction 
strategy. During the review period, the Government made changes to the NZETS through the Climate 
Change Response (Emissions Trading Reform) Amendment Act 2020, which came into law on 
22 June 2020. Among its novelties, the Amendment introduces a cap on GHG emissions under the 
NZETS, in alignment with New  Zealand's long -term ta rgets. This means that every five years, the 
authorities will set a limit on the supply of the total GHG emission rights available under the NZETS.  
4.2.1   Electricity  
4.36.   In 2020, New  Zealand's installed power generation capacity was 9,758  MW (almost 
unchanged since 2015). Hydropower plants account for over half of the country's total capacity 
(Table  4.4). As in the case of total energy consumption, the industrial and residential sectors are 
the main electricity consumers.  
Table 4.4 New Zealand's installed power generation capacity, 2015 -20 
(MW)  
Year -end 2015  2016  2017  2018  2019  2020  
Electricity -only plants  
Hydro  5,426  5,426  5,426  5,426  5,434  5,434  
Geothermal  1,212  1,207  1,207  1,231  1,231  1,265  
Biogas  37 33 33 33 33 33 
Wind 688 689 689 689 689 689 
Diesel  180 180 180 183 183 191 
Coal/gas  500 500 500 500 500 500 
Gas 1,130  1,130  1,130  1,130  1,130  1,130  
Subtotal  9,173  9,166  9,165  9,192  9,200  9,342  
Cogeneration  
Gasa  327 157 157 157 157 159 
Otherb 259 259 263 263 263 257 
Subtotal  586 416 420 420 420 416 
Total  9,759  9,581  9,585  9,612  9,620  9,758  
a Plants that run solely on natural gas are listed under "gas". Multi -fuelled plants that run partly on 
natural gas are listed under "other".  
b Includes cogeneration by some multi -fuel or single -fuel biomass, coal, liquid fuel, and geothermal 
plants. It also includes multi -fuelled plants running partly on natural gas.  
Source:  Information provided by the authorities.  
 
26 UNFCC (2021), New  Zealand's Submission under the Paris Agreement. Viewed at: 
https://www4.unfccc.int/sites/ndcstaging/PublishedDocuments/New%20Zealand%20First/New%20Zealand%2
0NDC%20November%202021.pdf . 
27 MBIE, Energy Strategies for New  Zealand . Viewed  at: https://www.mbie.govt.nz/building -and-
energy/energy -and-natural -resources/energy -strategies -for-new-zealand . 
28 MBIE, New Zealand Energy Efficiency and Conservation Strategy 2017 -2022. Viewed at: 
https://www.mbie.govt.nz/assets/346278aab2/nzeecs -2017-2022.pdf . WT/TPR/S/426 /Rev.1  • New Zealand  
- 100 - 
  4.37.   The electricity regu latory framework remained largely unchanged during the review period. 
The Electricity Industry Act  2010 (EIA), together with its implementing regulations29, provides a 
framework for the regulation of the electricity industry. The Electricity Industry Parti cipation 
Code 2010 sets out the duties and responsibilities of industry participants and the regulator. The 
Commerce Act  1986 (Part  4) provides price -quality regulation for Transpower and other large 
distribution companies (i.e. 17  non-community owned dist ributors). Under the same Act, 
Transpower and all distributors are subject to information disclosure requirements.  
4.38.   New Zealand's electricity industry has four main components: generation, transmission, 
distribution, and retail. Around 95% of the country's electricity is generated by five companies. 
Three  of these companies (Meridian Energy, Genesis Energy, and Mighty River Power) operate under 
a mixed ownership model in which the Government holds a majority 51% stake, while Contact and 
Trustpower are privat ely owned. There are no restrictions on private participation in the generation 
sector. Foreign investment in electricity generation is subject to the general provisions of the 
Overseas Investment Act  2005.  
4.39.   The state -owned enterprise Transpower owns and operates New  Zealand's national 
electricity  transmission system. The authorities indicate that any business may own and operate 
high voltage transmission assets, but Transpower's role as the electricity system operator is specified 
in the EIA. Transpower t ransmits most of New  Zealand's electrical energy to 27  distribution 
companies throughout New  Zealand. The electricity distribution sector has diverse ownership, 
including consumer cooperatives, territorial authorities, and private investment (including for eign 
owners). Foreign ownership is subject to the general provisions of the Overseas Investment 
Act 2005. Transpower also supplies electricity directly to some large industrial companies.  
4.40.   There are currently 31 electricity retailers in New  Zealand, of whic h 5 are owned by the 
dominant electricity generating companies. However, these generator -retailers continue to dominate 
the retail market, with a 90% market share. A recent review of the electricity sector, the 
2019 Electricity Price Review (EPR), indicate d that the many independent retailers that have entered 
the sector face barriers to expanding their market share.30 Rules governing retail market conduct 
and wholesale contract market liquidity were subsequently amended to address this concern.  
4.41.   Electricity  is traded on the wholesale market, which is coordinated by the Electricity Authority 
(the government regulator) and other organizations undertaking various roles (e.g.  market 
administrator, pricing manager, clearing manager). The Electricity Authority is in charge of 
developing policy, code provisions, and systems for the buying and selling of wholesale electricity 
and for managing security of its supply. Generators make offers to supply electricity at approximately 
52 grid injection points (where their po wer stations connect to the national grid), and retailers and 
major industrial users make bids to buy electricity at approximately 200  grid exit points.  
4.42.   Findings by the recent EPR show that residential power prices in New  Zealand has risen 
by 48% since 200 0 after adjusting for inflation, while prices for industrial and commercial clients 
remained largely flat during that period. These residential price increases were largely explained by 
increases in distribution charges.31 Wholesale and retail electricity prices are unregulated for all 
classes of consumers, except that retailers must offer households with below -average consumption 
a fixed charge tariff component not exceeding NZD  0.30 per day (variable tariff components are not 
regulated). These regulations  are to be phased out over five years beginning in 2022. Electricity 
distribution enterprises are subject to price -quality regulation by the Commerce Commission, 
except  12 consumer -owned businesses that are exempt.  
4.2.2   Hydrocarbons  
4.43.   Hydrocarbons continue to be New Zealand's main source of primary energy and an important 
source of GHG emissions.  
 
29 The Electricity Industry (Enfor cement) Regulations 2010, the Electricity Industry (Levy of Industry 
Participants) Regulations 2010, and the Electricity Industry (Participants and Roles) Regulations 2012.  
30 MBIE (2019), Electricity Price Review . Viewed at: https://www.mbie.govt.nz/assets/electricity -price-
review -final-report.pdf . 
31 MBIE (2019), Electricity Price Review . Viewed at: https://www.mbie.govt.nz/assets/electricity -price-
review -final-report.pdf . WT/TPR/S/426 /Rev.1  • New Zealand  
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  4.44.   Oil production in New  Zealand comes from both offshore and onshore fields. The country 
exports most of its oil production and imports a significant proportion of its oil requirement 
(Table  4.5). Its higher quality oil is sold at higher prices on the international market, mostly to 
Australia and Singapore. Crude oil is transported, either by pipe, ship, or truck, for export to 
refineries (predominately in Australia and Sing apore) or for further processing and/or distribution in 
New Zealand.  
Table 4.5 New Zealand's production, imports, and exports of oil and gas, 2015 -20 
 
2015  2016  2017  2018  2019  2020  
Crude, condensate, naphtha , and natural gas liquids (kt)  
Gross production  1,862  1,572  1,400  1,085  1,121  964 
Imports  5,120  5,291  5,491  4,949  5,127  3,728  
Exports  1,966  1,530  1,312  1,078  1,091  901 
Natural gas (PJ)  
Gross production  217 221 216 187 195 190 
Imports  0 0 0 0 0 0 
Exports  0 0 0 0 0 0 
Note:  kt is the abbreviation for 1,000 tonnes; PJ stands for petajoule or 278 gigawatt hours.  
Source:  Information provided by the authorities.  
4.45.   New Zealand's natural gas production is largely sold domestically (Table  4.5). Gas, once 
suitably purified, is compressed and then transported by pipe for distribution around the 
North  Island. Liquid petroleum gas is also produced and then transported around the country by 
truck or gas bottles to be used dom estically and commercially.  
4.46.   The upstream oil and gas industry is primarily governed by the Crown Minerals Act  1991 
(CMA) and complemented by a network of laws and regulations.32 The Government owns all 
petroleum resources and associated hydrocarbons. A per mit or licence is required to explore or mine 
petroleum, whether in -ground, in the Exclusive Economic Zone, or in the continental shelf. Under 
the Minister of Energy and Resources, New  Zealand Petroleum and Minerals (NZP&M) is responsible 
for administering  the permit regime, in accordance with the Crown Minerals Act 1991 and other 
related legislation. Foreign investment is generally allowed in the petroleum industry. However, 
approval is required for acquisition of "significant business assets" worth more t han NZD  100 million, 
pursuant to the Overseas Investment Act  2005. In accordance with the applicable royalty regimes, 
all permit holders pay either an ad valorem  royalty or an accounting profits royalty, whichever is 
higher in any given year. All licence holders pay royalty in accordance with their respective licence 
agreements.  
4.47.   Exploration permits are allocated on an annual tender process called Block Offer. 
NZP& M publishes annual block offers, making available a number of blocks for competitive tender 
on the international market. Petroleum companies bid applications are assessed on proposed work 
programmes and criteria, including their technical and financial cap ability to meet expected health, 
safety, and environmental requirements. The Resource Management Act  1991 regulates the 
environmental effects of minerals and petroleum activities on land and within the territorial sea, and 
imposes conditions to avoid, reme dy, or mitigate adverse effects of such activities on the 
environment.  
4.48.   Under the Exclusive Economic Zone and Continental Shelf (Environmental Effects) Act  2012, 
the Environmental Protection Authority (EPA) regulates the environmental effects of petroleum a nd 
minerals activities beyond the territorial sea. Consent is required from the EPA for such activities. In 
February  2019, the Crown Minerals Amendment Act  2019 entered into force. Under the Amendment, 
prior consent  from t he Ministry of Energy and Resource s is required for ownership changes of 
petroleum and certain minerals permits. This applies only to transactions entered into after the 
Amendment's implementation.  
4.49.   In line with New  Zealand's vision to address climate change and create a clean and sustainab le 
economy, the Crown Minerals (Petroleum) Amendment Act  2018 provides that no further offshore 
 
32 Health and Safety at Work Act 2015, Resource Management Act 1991, Marine and Coastal Area 
(Takutai Moana) Act 2011, Exclusive Economic Zone and Continental She lf (Environmental Effects ) Act 2012, 
Maritime Transport Act 1994, and Hazardous Substances and New Organisms Act 1996.  WT/TPR/S/426 /Rev.1  • New Zealand  
- 102 - 
  oil and gas exploration permits will be granted. In addition, the Amendment further limits the award 
of new petroleum exploration permits to the onshore Taranak i Region only.  
4.50.   In 2019, the minerals and petroleum resource strategy for 2019 -29 was adopted.33 It sets 
the Government's long -term vision for the minerals and petroleum sector to support New  Zealand's 
transition to a carbon -neutral economy.  
4.51.   There are five fuel importers: BP, Mobil, Z Energy, Gull  NZ, and Timaru Oil Services. Each 
wholesales fuel to independent retailers and distributes and retails through its own network of retail 
outlets. Gull NZ also imports and retails fuel, and since 2020 Timaru Oil Services imports and sells 
in the South Island. According to the authorities, no specific permit i s required to import, 
manufacture, or sell fuels in New  Zealand. Foreign investment in the sector is subject to the general 
provisions of the Overseas Investment Act 2005.  
4.52.   New Zealand's only oil refinery is at Marsden Point, Whāngārei,  and is operated by t he 
New Zealand Refining Company, a privately owned company. The refinery produces premium and 
regular petrol, diesel, automotive fuels, and kerosene for the New  Zealand market. Over 90% of the 
oil it processes is imported and consists of low -grade (and rel atively low -cost) Middle East crude oil. 
Most of the refinery's production is distributed via a 170  km pipeline. The balance is transported by 
coastal tanker and road to the rest of New  Zealand. The refinery is expected to close operations in 
2022 and conv ert to a product import terminal.  
4.53.   The Fuel Industry Act 2020 was passed in 2020 to improve the state of competition in the fuel 
marketing industry and promote transparency in retail fuel prices. Under terminal gate pricing rules, 
wholesale fuel suppliers m ust publish a spot price for fuel and are generally required to sell it to any 
wholesale customers that want it at that price. Wholesale contract rules limit the use of restrictive 
terms in wholesale contracts. The Act provides a process for wholesale fuel  suppliers and their 
customers to resolve disputes about wholesale contracts and terminal gate price rules.  
4.54.   The quality of petrol and diesel sold in retail outlets is regulated under the Engine Fuel 
Specifications Regulations 2011. From 2022, the quality o f marine fuels will also be regulated 
pursuant to Annex  VI of the International Convention for the Prevention of Pollution from 
Ships  (MARPOL).  
4.3  Manufacturing  
4.55.   In 2019/20, the manufacturing sector accounted for 10.7% of GDP, and 8.6% of total 
employment. Man ufactured products accounted for 17.8% of New  Zealand's merchandise exports 
and 76.2% of imports  in 2021. The food industry, in particular dairy and meat processing, and 
machinery remain the major manufacturing industries (Table  4.6). In general, productio n in the 
main manufacturing industries was stable during the review period, with a slight increasing trend.  
Table 4.6 Manufacturing production by main subsector, 2015 -20 
(NZD million)  
Subsector  2015  2016  2017  2018  2019  2020  
Meat and meat product manufacturing  1,875  1,700  1,917  1,894  2,138  2,351  
Seafood processing  462 542 550 621 604 592 
Dairy product manufacturing  3,715  4,164  1,808  2,997  3,071  3,764  
Fruit, oil, cereal, and other food product 
manufacturing  2,108  2,242  2,424  2,678  2,486  2,676  
Beverage and tobacco product manufacturing  2,346  2,539  2,415  2,532  2,713  2,754  
Textile, leather, clothing, and footwear 
manufacturing  657 671 730 676 633 620 
Wood product manufacturing  1,243  1,409  1,491  1,536  1,606  1,653  
Pulp, paper and converted paper product 
manufacturing  594 701 676 757 852 642 
Printing  693 655 716 676 676 662 
 
33 MBIE (2019), Responsibly Delivering Value:  A Minerals and Petroleum Resource Strategy for Aotearoa 
New Zealand: 2019 -2029. Viewed at: https://www.mbie.govt.nz/assets/nzpm -resource -strategy -multi-
agency.pdf . WT/TPR/S/426 /Rev.1  • New Zealand  
- 103 - 
  Subsector  2015  2016  2017  2018  2019  2020  
Petroleum and coal product manufacturing  2,198  2,670  2,332  2,473  2,235  2,666  
Basic chemical and chemical product 
manufacturing  1,181  1,319  1,467  1,477  1,467  1,417  
Polymer product and rubber product 
manufacturing  1,296  1,303  1,345  1,402  1,508  1,528  
Non-metallic mineral product manufacturing  1,095  1,115  1,139  1,178  1,208  1,145  
Primary metal and metal product 
manufacturing  723 635 766 859 878 593 
Fabricated metal product manufacturing  1,973  2,121  2,231  2,258  2,483  2,472  
Transport equipment manufacturing  998 1,119  1,235  1,298  1,337  1,357  
Machinery and other equipment manufacturing  3,067  3,233  3,363  3,569  3,781  4,115  
Furniture and other manufacturing  641 671 778 761 789 841 
Total 26,865  28,809  27,383  29,642  30,465  31,848  
Source:  Information provided by the authorities.  
4.56.   Over the first half of 2020, as a consequence of the COVID -19 pandemic and related 
lockdowns, manufacturing production and sales fell by 12%.34 The largest fall in sales volume was 
recorded in the petroleum industry, followed by metal products. Essential goods in the meat and 
dairy industries weathered well during th e crisis due to high international dairy prices and exports 
of these products. However, manufacturing production rapidly rebounded to pre -COVID -19 trend by 
the end of 2020. Low productivity growth continues to affect the sector's performance. The 
authoriti es note that labour productivity growth in the sector averaged 0.5% per annum 
between  2008 and 202035, well below the whole economy's average of 0.9% (which is also low by 
international comparison). The small New  Zealand market and the country's geographic  isolation are 
among the factors driving low levels of productivity growth. Lack of technology diffusion and weak 
investments have also played a part.  
4.57.   The applied tariff in manufacturing is generally low and has been on a decreasing trend 
since 2009. In 20 21, the average MFN tariff for manufacturing (ISIC 3) was 2.3% (2.5% in  2015). 
However, tariff rates for, inter alia, plastics, metals, textiles, footwear, and transport equipment 
remain higher than the sectoral average ( Table  A3.1). 
4.58.   The Government's appro ach to manufacturing aims to support more innovative industries and 
boost the sectoral productivity, sustainability, and inclusivity in key industries. To help realize the 
sector's potential, the authorities state that a strategic plan, the Advanced Manufa cturing Industry 
Transformation Plan, is being developed.36 The Plan brings together all relevant parties around an 
industry to agree to a long -term vision for the sector and identify the actions that can be taken by 
industry, the Government, and others to  realize this vision . The major pillars of the plan include 
growing innovation and investment, attracting and developing a high -skilled workforce, creating a 
leading sustainable and low -emissions sector, and enhancing global connectivity and opportunities.  
4.59.   As highlighted in the previous Review, New  Zealand does not have a single incentive scheme 
exclusively dedicated to manufacturing activities. However, a number of programmes with broader 
economic objectives are of benefit to manufacturing companies ( Section 3.3.1 ). These programmes 
are mainly delivered through two separate public entities, Callaghan Innovation (for innovation -
oriented firms) and New  Zealand Trade and Enterprise (NZTE) (an international business 
development agency). Callaghan Innovation's o fferings include its Lean service, which provides 
workshops and coaching programmes to improve companies' competitiveness and performance, and 
its Research and Development Solutions Division, which provides services around product 
development, workshops, p ilot plants, testing and failure analysis, near market research, and 
contracting R&D. The NZTE's International Growth Fund (IGF) assists firms that have the potential 
 
34 Stats New  Zealand (2020), " Manufacturing Sales Shrink During COVID ‑19 Lockdown ", 9 September.  
Viewed at: https://www.stats.govt.nz/news/manufacturing -sales-shrink -during -covid-19-lockdown . 
35 Over the same period, plastics and rubber, chemicals and ref ining, equipment, and other 
manufacturing achieved productivity growth above the whole economy average rate, while food and beverage 
and metals subsectors had negative productivity growth rates. Stats New  Zealand  (2021), "Productivity 
Statistics: 1978 -2020", 16 February . Viewed at: https://www.stats.govt.nz/information -releases/productivity -
statistics -19782020 . 
36 MBIE (2021), Advanced Manufacturing ITP Scope , July. Viewed at: 
https://www.mbie.govt.nz/assets/advanced -manufacturing -itp-scope.pdf . WT/TPR/S/426 /Rev.1  • New Zealand  
- 104 - 
  to contribute to New  Zealand's long -term economic growth and acquire key capabilities for  business 
growth.  
4.60.   In response to the COVID -19 pandemic and its economic impact, companies in New  Zealand, 
including those operating in the manufacturing sector, were given a number of support measures 
under a Wage Subsidy Scheme and a Leave Subsidy Scheme.  Business advisory services were also 
increased so that firms were able to access advice and information on business disruption and 
response.  
4.61.   The main environmental measures in manufacturing consisted of the phase -down, under the 
NZETS, of all industrial a llocations (free allocation of carbon emission rights) from 2021. Under the 
new system, the NZETS will reduce the amount of free allocation for every activity by 1% each year 
from 2021 to 2030, with greater reductions (2%) annually after 2030 and 3% annual ly after  2040.  
4.4  Services  
4.4.1   Financial services  
4.62.   The sector accounted for 6.2% of GDP in 2018/2019 ( Chart  1.1) and 3% of total employment. 
The financial system is dominated by the banking industry, with assets totalling NZD  644 billion 
in 2021, i.e. some 86% of overall financial system assets. In contrast, capital markets remained less 
developed by international standards, with total market capitalization of equities at the New  Zealand 
Stock Exchange of around NZD  182 billion, while the domestic bond market is ar ound 
NZD 165 billion (excluding government debt). The managed fund industry is also small compared to 
banks, with around NZD  185 billion in assets under management. Furthermore, the banking system 
provides 94% of lending to the non -financial private sector  in New  Zealand. Together capital market 
funding (issuance of corporate bonds) and non -bank lending institutions  (NBLIs) account for only 
6%.37 
4.63.   There were no changes to foreign participation conditions during the review period. The 
financial sector is subject to the general provisions of the Overseas Investment Act  2005 
(Section  2.4). There are no sector -specific restrictions on foreign investment, with local and foreign 
financial institutions competing on the same conditions in the domestic market. All  companies, 
domestic and foreign, have access to a range of financing options in the local market. New  Zealand 
does not apply a capital gains tax but has a bright -line test requiring people who buy and sell a 
residential property less than 10  years apart ( other than as their main home) to pay income tax on 
any profit . 
4.64.   There is no restriction on cross -border supply of financial services, including insurance relating 
to transport and transit of goods; reinsurance and retrocession and services auxiliary to ins urance; 
provision and transfer of financial information and financial data processing and related software; 
advisory, intermediation, and other auxiliary financial services; and certain electronic payment and 
portfolio management services.  
4.65.   The Reserve Bank  of New  Zealand (RBNZ) is responsible for promoting the maintenance of a 
sound and efficient financial system. To help achieve this, the RBNZ regulates and supervises 
banks  and insurers, regulates non -bank deposit takers38, and oversees financial market 
infrastructures (FMIs).  
4.66.   A Council of Financial Regulators is in place to facilitate cooperation between the RBNZ (banks 
and insurance regulators), the Financial Markets Authority (FMA) (the capital markets regulator), 
and other government departments involve d in financial regulation.  
4.67.   The Anti -Money Laundering and Countering Financing of Terrorism Act (AML/CFT) 2009 seeks 
to contribute to public confidence in New  Zealand's financial system and bring New  Zealand's 
approach to detecting and deterring money laund ering and terrorism financing in line with 
 
37 Reserve Bank of New  Zealand, The Banking System . Viewed at: https://www.rbnz.govt.nz/financial -
stability/overview -of-the-new-zealand -financial -system/the -banking -system . 
38 Building societies, credit unions, and finance companies that take deposits from the public.  WT/TPR/S/426 /Rev.1  • New Zealand  
- 105 - 
  international standards.39 The Act provides a regime for the supervision, monitoring, and 
enforcement of AML/CFT obligations by the RBNZ, the FMA, and the Department of Internal Affairs. 
It also put in place a set  of requirements relating to customer due diligence, account monitoring, 
and suspicious transaction reporting. The AML/CFT Act was amended in  2018 to extend the coverage 
of the legislation to capture designated non -financial businesses and professions, e.g . lawyers.  
4.68.   On 9 July 2021, a new set of regulations on AML/CFT came into force.40 Some of the changes 
introduced by the amendment regulations provide clarification to the existing regulations and 
exemptions. The amendment regulations also expand and amend reporting entities' customer due 
diligence obligations to establish whether their customer (a company) has any nominee directors, 
nominee shareholders, or nominee general partners; verify information about such persons in the 
prescribed manner; and, where such nominees exist, undertake enhanced customer due diligence.  
4.69.   The main challenges facing New  Zealand's financial sector include the rapid increase in 
housing prices over the past 18  months to above what appears to be sustainable, increasing the 
chance of  a correction. Also, recent buyers are borrowing more relative to their income, and may be 
vulnerable to higher mortgage rates or a fall in house prices.  Another important risk is that posed 
by climate change. The RBNZ sees climate change as a risk to fina ncial stability, given its associated 
physical and transitional risks. In recent years, for example, the costs of weather -related 
catastrophes in New  Zealand have been rising. During the review period, New  Zealand experienced 
some of its most costly tornad os, floods, hailstorms, and fires. For insurance companies, this implies 
increasing claims41, leading to situations where insurance cover might become more expensive or 
unavailable, as it would no longer be commercially viable.  
4.70.   For banks, this will mean in creased risks to the properties they rely on as collateral.42 There 
will also be an increased risk of default, for example, by agricultural borrowers dealing with the 
impacts of increasingly extreme weather, such as droughts. In that respect, financial authorities are 
looking to introduce a mandatory climate -related  financial disclosure for financial entities. In 
October  2021, the Financial Sector (Climate -related Disclosures and Other Matters) Amendment Bill 
was passed and received Royal Assent. It aims to make climate -related disclosure mandatory for 
several entiti es, including  large listed companies with a market capitalization of more than 
NZD 60 million; and large licensed insurers, registered banks, credit unions, building societies, and 
managers of investment schemes with more than NZD  1 billion in assets. The aim is to ensure that 
businesses factor the effects of climate change into their business decisions.43 The Government has 
tasked the External Reporting Board (XRB), an independent Crown entity responsible for accounting, 
auditing, and assurance standards i n New  Zealand,  with developing reporting standards to support 
the new reporting regime. The first climate standard is expected in December  2022.  
4.4.1.1   Banking  
4.71.   There are currently 27 registered banks (up from 25 in  2014) (Table  4.7). The four large 
Australian -owned banks (ANZ Bank, ASB Bank, Bank of New  Zealand, and Westpac New  Zealand) 
hold 85% of bank lending, and the five New  Zealand -owned banks account for 9%, illustrating that 
New Zealand's overall banking industry continued to be dominated by these four inst itutions, also 
classified as the country's domestic systemically important banks (D -SIBs). However, the RBNZ's 
November  2021 Financial Stability Report indicates that concentration across key bank lending and 
deposit markets has been gradually decreasing. Domestic -owned banks have increased their market 
shares in the residential mortgage lending and household deposit markets over the past 
two decades.  
 
39 Parliamentary Counsel, Anti -Money Laundering and Countering Financing of Terrorism Act 2009. 
Viewed at: https://www.legislation.govt.nz/act/public/2009/0035/latest/DLM2140720.html . 
40 AML/CFT (Cross -border Transportation of Cash) Amendment Regulations 2021; AML/CFT (Definitions) 
Amendment Regulations 2021; AML/CFT (Exemptions) Amendment Regulations 2021; and AML/ CFT 
(Requirements and Compliance) Amendment Regulations 2021.  
41 The Insurance Council of New  Zealand has reported that weather events totalled NZD  274 million in 
insurance claims in 2020.  
42 RBNZ (2021), Climate Changed: 2021 and Beyond . Viewed at: https:// www.rbnz.govt.nz/ -
/media/ReserveBank/Files/Publications/Financial -stability/climate -change/climate -change -report -
2021.pdf?revision=7402a2b1 -533a-484e-a1a1-cdc06ba484a1 . 
43 External Reporting Board, Climate -related Disclosures . Viewed at: https://www.xrb.govt.nz/extended -
external -reporting/climate -related -disclosures/ . WT/TPR/S/426 /Rev.1  • New Zealand  
- 106 - 
  Table 4.7 Registered banks, 2022  
Bank  Ultimate parent  Country of 
parent  
Australia and New  Zealand Banking Group 
Limited  Branch  Australia  
ANZ Bank Limited  Australia and New  Zealand Banking 
Group Limited  Australia  
Commonwealth Bank of Australia  Branch  Australia  
ASB Bank Limited  Commonwealth Bank of Australia  Australia  
Bank of New  Zealand  National Australia Bank  Australia  
Bank of Baroda (New  Zealand) Limited  Bank of Baroda  India 
Bank of China (New  Zealand) Limited Bank of China  China  
Bank of China Limited  Branch  China  
Bank of India (New Zealand) Limited  Bank of India  India 
Citibank N.A.  Branch  United  States  
China Construction Bank (New  Zealand) 
Limited China Construction Bank  China  
China Construction Bank Corporation  Branch  China  
Heartland Bank Limited  Hearthland New Zealand Limited  New Zealand  
Industrial and Commercial Bank of China 
(New Zealand) Limited  Industrial and Commercial Bank of 
China  China  
Industrial and Commercial Bank of China  Branch  China  
JPMorgan Chase Bank, N.A.  Branch  United  States  
Kiwibank Limited  New Zealand Post Limited  New Zealand  
Kookmin Bank  Branch  Korea, Rep. of  
Rabobank Nederland  Branch  Netherlands  
Rabobank New  Zealand Limited  Rabobank Nederland  Netherlands  
Southland Building Society  SBS Group  New Zealand  
The Bank of Tokyo -Mitsubishi Limited  Branch  Japan  
The Co -operative Bank Limited  Cooperative  New Zealand  
The Hong Kong and Shanghai Banking 
Corporation Limited  Branch  United Kingdom  
TSB Bank Limited  TSB Community Trust  New Zealand  
Westpac Banking Corporation  Branch  Australia  
Westpac New  Zealand Limited  Westpac Banking Corporation  Australia  
Source:  RBNZ, Register of Registered Banks in New  Zealand . Viewed at:  
https://www.rbnz.govt.nz/regulation -and-supervision/banks/register . 
4.72.   In general, banks' asset quality was high during the review period. The proportion of 
non-performing loans (NPLs), which was 0.9% in  2014, was on a decreasing trend until  2019, but 
deteriorated in  2020 due to the COVID -19 pandemic (Table  4.8). Industries most affected by 
COVID -19 restrictions, such as hospitality, tourism, and transport, experienced higher than  average 
NPLs. However, in 2021, NPLs returned to the low levels seen before the COVID -19 
pandemic  (0.45%).44 Most of the mortgage borrowers who during the initial lockdown in  2020 
temporarily deferred their payments, or switched to interest -only, have ret urned to making principal 
repayments. Further, the share of borrowers on banks' hardship programmes remains low, despite 
the COVID -19 pandemic. Banks' profitability was relatively high but fell slightly in 2020 due to 
impairment charges. Tier  1 capital rat ios were also high and exceeded regulatory minimums during 
the review period, and increased further in 2021 (15.4%), as banks retained their earnings.  
 
44 RBNZ (2021), Financial Stability Report , November. Viewed at: https://www.rbnz.govt.nz/ -
/media/ReserveBank/Files/Publications/Financial%20stability%20reports/2021/fsr -nov-
21.pdf?revision=98c2c2c6 -c838-4a59-9297-9d2df221b618 . WT/TPR/S/426 /Rev.1  • New Zealand  
- 107 - 
  Table 4.8 Banking sector indicators, 2015 -20 
  2015  2016  2017  2018  2019  2020  
Number of registered banks  25 24 25 26 26 27 
Total assets (NZD  million)  479,146  510,213  525,954  548,961  583,613  634,012  
Total income (NZD  million)  12,409  12,713  13,076  13,868  14,059  13,632  
Net interest income (NZD  million)  9,411  9,725  9,919  10,708  10,812  10,969  
Operating expenses as a % of total 
income  40.56  42.24  41.55  40.21  43.02  46.17  
Net profit after tax (NZD  million)  5,072  4,961  5,406  5,766  5,540  4,302  
Return on assets (ROA) (%)  1.10 0.99 1.05 1.07 0.98 0.70 
Return on equity (ROE) (%)  15.22  13.90  14.47  13.95  12.84  9.30 
Total capital (as a % of risk -weighted 
assets)a 13.46  13.69  14.71  14.98  14.36  15.25  
Tier 1 capital (as a % of 
risk-weighted assets)  12.05  12.41  13.59  13.87  13.50  14.32  
Tier 2 capital (as a % of 
risk-weighted assets)a 1.41 1.28 1.12 1.11 0.86 0.93 
Impaired assets/gross lending (%)  0.39 0.40 0.40 0.33 0.41 0.38 
Non-performing loans/gross 
lending  (%) 0.55 0.54 0.54 0.47 0.59 0.60 
Specific provisions/impaired 
assets  (%) 34.00  26.43  22.06  25.13  19.91  27.06  
a Locally incorporated banks only. Overseas -incorporated banks are required to calculate capital and 
risk-weighted credit exposures in accordance with the requirements in their home jurisdiction; 
therefore they are not directly comparable . 
Source:  Information provided by the authorities.  
4.73.   Non-bank deposit -taking institutions (NBDTs) account for a relatively small part of the 
New Zealand financial system. In 2021, there were 18 NBDTs operating in New  Zealand, which 
include building societies, credit unions, and deposit -taking finance companies. NBDTs play an 
important role in financial inclusion by serving communities that may traditionally be under -serviced 
by the banking system.  
4.74.   Throughout the early stages of the COVID -19 pandemic, the RBNZ undertook a number of 
regulatory actions to ensure that banks had sufficient headroom to continue to support borrowers. 
These included providing temporary funding and liquidity support, delaying pl anned increases to 
capital requirements to July  2022 (instead of July  2021), suspending bank dividend payments until 
at least July  2022, and temporarily adjusting loan -to-value ratio and core funding ratio (CFR) 
policies. However, in March  2021, the RBNZ e ased the dividend restrictions placed on retail banks 
at the height of the COVID -19 pandemic, allowing banks to pay up to a maximum of 50% of their 
earnings as dividends to their shareholders.  
4.75.   The banking sector is regulated by the RBNZ under the Reserve B ank of New  Zealand 
Act 1989. The Act empowers the RBNZ to register and supervise banks for the purposes of promoting 
a sound and efficient financial system and avoiding significant damage to the system in the event of 
distress or bank failure. The authorit ies indicate that the Reserve Bank of New  Zealand Act 1989 is 
being amended by the Reserve Bank Act 2021. The new Act will come into effect in July  2022. The 
Reserve Bank Act 2021 covers the governance and non -prudential functions of the RBNZ, including 
monetary policy and the RBNZ's role as lender of last resort for the financial system. In addition, 
banks are subject to the Credit Contracts and Consumer Finance Act  2003, administered by the 
Commerce Commission, which requires creditors to disclose all asp ects of credit contracts (e.g. fees, 
charges, and interest).  
4.76.   Both locally incorporated entities and bank branches incorporated overseas may apply for 
registration. There is no upper limit on the number of registered banks and no restrictions on the 
scope o f financial services that a bank may provide. However, a banking group is not permitted to 
conduct material non -financial activities and insurance businesses in excess of 1% of total 
consolidated group assets. Only entities whose business substantially con sists of borrowing and 
lending money or providing other financial services may be registered as banks. They must have a 
proven ability to conduct their business in a prudent manner and an appropriate standing in financial 
markets. The RBNZ considers both q ualitative and quantitative criteria in the registration process.  WT/TPR/S/426 /Rev.1  • New Zealand  
- 108 - 
  4.77.   New Zealand -incorporated banks must have a total capital of not less than NZD  30 million 
and meet the following capital ratio requirements and buffers in accordance with Basel  III: (i)  a 
minimum ratio of 6% of Tier  1 capital to risk -weighted assets, and a minimum of 8% total capital 
ratio; (ii)  a common equity Tier  1 capital ratio of not less than 4.5%; and (iii)  a prudential capital 
buffer (PCB) of at least 2.5%, resulting in a total capital  ratio of at least 10.5%. The RBNZ has the 
power to apply an additional counter -cyclical capital buffer under certain circumstances. In 2019, 
the RBNZ decided on an increase in capital ratios of banks. The increase in capital is set to be phased 
in over a seven -year period, starting from July  2022 (initially July  2021). By the end of the transition 
period in  2028, New  Zealand's D -SIBs will be required to have a common equity Tier  1 capital ratio 
of 4.5%, a Tier  1 capital ratio of 7%, and a total capital rat io of at least 18%, i.e. a total capital ratio 
of 9%, and a PCB of at least 9%.45 All other registered banks will be required to have a CET1 capital 
ratio of 4.5%, a Tier 1 capital ratio of 7%, and a total capital ratio of at least 16%, i.e. a total capita l 
ratio of  9%, and a PCB of at least 7%.  
4.78.   Locally incorporated banks must hold liquidity buffers that satisfy the one -week and 
one-month mismatch ratios. In  2013, the RBNZ adopted a model under which it was required to 
comply with a minimum CFR that require s that at least 75% of total funding must come from 
liabilities other than short -term debt, such as retail deposits, long -term wholesale borrowing, and 
bank capital. On 2  April 2020, in the context of COVID -19 pandemic, the RBNZ temporarily reduced 
the min imum CFR requirement from 75% to 50% to support banks' lending to the economy. On 
1 January  2022, the minimum CFR requirement was increased to its previous level of 75%.  
4.79.   Banks must submit monthly reports on liquidity risk to the RBNZ, using a standard temp late, 
displaying their minimum ratios, a breakdown of liquid assets held, comprehensive data on cash 
inflows and outflows broken down by maturity, details of new funding raised over the latest month, 
and the cost of that funding.  
4.80.   An overseas -incorporated entity wishing to register as a branch in New  Zealand must have 
bank status in its home jurisdiction and the approval of its home supervisor to carry out banking 
activities in New  Zealand. Overseas bank branches are not subject to min imum capital requirements, 
but the parent bank must demonstrate that it meets the prudential requirements, including minimum 
capital standards imposed on it by its home supervisor. However, the RBNZ may require a foreign 
bank to operate through a locally i ncorporated entity, rather than a branch in certain circumstances, 
i.e. when the bank is systemically important, when the bank intends to take retail deposits in 
New Zealand and there is depositor protection in the bank's home jurisdiction, or when supervi sory 
arrangements (including disclosure requirements) and market disciplines in the home jurisdiction 
are deemed inadequate. The RBNZ is currently reviewing its policies relating to the registration of 
overseas -incorporated banks, with the objective of imp roving the consistency and clarity of the 
prudential requirements applying to banks operating under a branch model, and ensuring these are 
consistent with the RBNZ's financial stability mandate and risk appetite. The related consultation 
process was launch ed in October  2021 and will be concluded in March  2022.46 
4.81.   The RBNZ closely monitors banks' compliance with the prudential supervision regime but does 
not guarantee banks against failures. There were no bank failures or use of bank crisis management 
powers during the review period. Under current legislation, there is no formal deposit guarantee 
scheme.  
4.82.   On 29  May 2018, the RBNZ launched the  Bank Financial Strength Dashboard (the Dashboard), 
an innovative online tool for sharing prudential and financial inform ation on 
New Zealand -incorporated banks.47 It makes prudential information easily accessible and 
comparable and aims to strengthen the market discipline of banks. The Dashboard is updated 
quarterly and is based on information provided by banks to the RBNZ.  
 
45 RBNZ, Capital Requirements for Banks in New  Zealand . Viewed at: 
https://www.rbnz.govt.nz/regulation -and-supervision/banks/prudential -requirements/information -relating -to-
the-capital -adequacy -framework -in-new-zealand . 
46 RBNZ,  Review of Policy for Branches of Overseas Banks . Viewed at: 
https://www.rbnz.govt.nz/regulation -and-supervision/banks/consultations -and-policy -initiatives/active -policy -
development/review -of-policy -for-branches -of-overseas -banks . 
47 RBNZ, Issuer Credit Ratings . Viewed at: https://bankdashboard.rbnz.govt.nz/summary . WT/TPR/S/426 /Rev.1  • New Zealand  
- 109 - 
  4.83.   The Non -Bank Deposit Takers Act  2013 provides a stand -alone framework for the prudential 
regulation of the NBDT sector. The Act incorporates prudential requirements and provisions on 
licensing, fit and proper requirements for directors and senior officers , changes of ownership, and 
investigation and enforcement. NBDTs are subject to regulatory requirements including capital 
adequacy, liquidity, related -party lending, governance, risk management, and credit rating 
obligations. According to the authorities, a proposed Deposit Takers Bill is expected to be passed 
in 2023, and is intended to provide for prudential regulation, establishing a single standards -based 
regime for the regulation and supervision of banks and NBDTs. It also provides for the introduction  
of deposit insurance, with a limit of NZD  100,000 per customer per institution. Finally, it will include 
a revised set of crisis management powers, including a "no creditor worse off" safeguard.  
4.4.1.2   Insurance  
4.84.   There are 88  licensed insurers currently operating  in New  Zealand, with approximately 
NZD 12 billion in gross premiums. Foreign -owned insurers account for 77% of gross premiums. Not 
all insurers that operate in New  Zealand are required to be licensed. The largest non -licensed 
insurers are government -owned . Based on gross premium revenue in 2020, general insurance 
constitutes 62% of gross premiums, with 23% for life insurance and 15% for health insurance.48 
4.85.   Insurers seeking to carry out insurance business in New  Zealand must be licensed under the 
Insurance (Prudential Supervision) Act  2010 (IPSA), which sets out a regulatory and prudential 
requirements framework.  There have been no recent changes to requirements under IPSA and 
associated regulations and standards. The following government -owned general insur ers are not 
subject to the insurance regulatory and prudential requirements: the Accident Compensation 
Corporation, the Earthquake Commission (co -insurer of residential dwellings for certain natural 
disasters), and Southern Response Earthquake Services. Th e Accident Compensation Corporation is 
the government provider of personal injury insurance; it is a statutory monopoly (although some 
large employers can contract out and cover their employees for work -related accidents), with its 
own legislation and is o verseen by the MBIE and the Treasury. The Earthquake Commission is a 
monopoly provider of nationwide residential insurance for land and dwellings; it has its own 
legislation and is overseen by the Treasury. Southern Response is a run -off insurer for covere d 
insurance claims arising from the Canterbury earthquake events between 2010 and 2012; it is 
overseen by the Treasury.  
4.86.   Licensed insurers may provide more than one type of insurance (life, general, health) through 
the same entity. However, almost all life insurers are required to establish a statutory fund to legally 
separate and better protect life insurance policyholders. Licensed insurers can have dealings with 
related parties (with higher risk charges for solvency calculations); they can conduct any 
non-insurance business within the insurer and can provide insurance in New  Zealand and in other 
countries from within the same entity.  
4.87.   Insurers (domestic or foreign -owned) must: (i)  have the ability to carry on its business in a 
prudent manner; (ii)  have a sa tisfactory fit and proper policy for directors and certain senior officers; 
(iii) have a proper risk management programme; (iv)  be registered or qualify to be registered as a 
financial services provider; (v)  unless exempted, have a current financial streng th rating from an 
approved rating agency (currently S&P, AM Best, and Fitch); (vi)  comply with all conditions of 
licence; and (vii)  comply with any other relevant legislation (including anti -money laundering as 
applicable). Solvency requirements may be on the New  Zealand basis or on the home jurisdiction 
basis for those branches that are exempted from New  Zealand requirements.  
4.88.   In December  2014, the RBNZ issued a set of Insurance Solvency Standards that were further 
amended in  2018. The Standards specify the  capital requirements for licensed insurers carrying on 
life insurance and non -life insurance businesses, methods for calculating and reporting solvency and 
related matters of a licensed insurer, and disclosure of solvency -related information. Unless 
exemp ted, there is a minimum capital amount of NZD  5 million for life insurance and NZD  3 million 
for non -life insurance. In  2020, the RBNZ began a review of the Insurance Solvency Standards. An 
updated, interim solvency standard is expected to be issued late i n 2022, followed by a final standard 
one or two years later.  
 
48 All figures exclude Lloyd's.  WT/TPR/S/426 /Rev.1  • New Zealand  
- 110 - 
  4.89.   The effects of climate change have started to impact the New  Zealand insurance market. In 
terms of nominal value of insurance claims, the five most expensive calendar years for weather 
event clai ms were the last five years (i.e. 2017 -21 inclusive). The mostly costly individual events for 
various types of weather have also been recent – tornado (2021), floods (2021), hailstorms  (2019), 
and wildfires (2020). According to the authorities, the weather -related losses, as well as the much 
larger earthquake losses in 2010, 2011, 2013, and  2016, have contributed to large increases in 
property insurance premium rates in recent years.  
4.4.1.3   Other financial services  
4.90.   The capital market of New  Zealand is small but ha s been growing in recent years with an 
increase in managed funds. The listed stock market capitalization was 54% of GDP in 
September  2021, and the total amount of bonds outstanding in the local market was 49% of  GDP 
(excluding government bonds).49 The bond  market is dominated by central government issues and 
financial institutions.50 
4.91.   The Financial Markets Conduct Act 2013 (FMCA) continues to be the principal act that 
regulates financial conduct in the capital markets. It governs the way financial products are offered, 
promoted, issued, and sold. The FMCA was progressively brought into force from April  2014. 
Although  the new regime was in effect on 1  December  2014, most regulated entities had until 
1 December  2016 to transition to the new regime. The FMCA established, inter alia, a licensing 
regime for fund managers, independent trustees, derivatives issuers, and providers of crowd 
funding, peer -to-peer lending and discretionary investment management services. It is not possible 
to perform any of the se services without a licence granted by the FMA, the regulator.  
4.92.   The Financial Advisers Act 2008 (FAA) requires all providers of finance advice or brokering 
services to retail clients in New  Zealand to comply with disclosure, competency, and conduct 
obliga tions. The FAA also requires all financial advisers to be registered; those who advise on more 
complex financial products must generally be authorized by the FMA.  
4.93.   The Financial Services Legislation Amendment Act 2019 was passed into law on 8  April 2019; 
it introduces, from 15  March  2021, a new regulatory regime for financial advice and repeals the 
Financial Service Providers (Registration and Dispute Resolution) Act  2008. It amends the FMCA and 
also makes changes to the registration requirements for the Fin ancial Service Providers Register.51 
Under the new regulatory regime, anyone giving regulated financial advice to retail clients will need 
to prioritize the interests of their clients, comply with a code of conduct, and operate under a licence 
granted by t he FMA. The changes are also designed to submit all advisers (such as Registered 
Financial Advisers, Authorised Financial Advisers, and Qualified Financial Entity adviser) to the same 
standards and code of professional conduct for financial advice services ; allow financial advice to be 
provided online, as well as in person; and set industry -wide standards for conduct and competence.52 
4.94.   Another change during the review period consisted of the adoption on 30  August  2019 of the 
Financial Markets (Derivatives Ma rgin and Benchmarking) Reform Amendment Act 2019. The Act 
enables compliance with foreign margin requirements for over -the-counter derivatives and 
introduces a licensing regime for administrators of financial benchmarks under the Financial Markets 
Conduct Act 2013.53 
4.95.   New Zealand's Exchange (the NZX) operate New  Zealand's capital, risk, and commodity 
markets. Listed issuers whose securities are quoted on one of NZX's licensed markets are subject to 
the Listing Rules applicable to that market and the FMC Act. The Listing Rules set out a number of 
 
49 At fiscal year -end 30  June 2021, New  Zealand government bonds outstanding accounted for 37% 
of GDP. 
50 IMF (2017), New Zealand: Financial Sector Assessment Program . Viewed at: 
https://www.imf.org/en/Publications/CR/Issues/2017/05/08/New -Zealand -Financial -Sector -Assessment -
Program -Financial -System -Stability -Assessment -44886 . 
51 MBIE, Regulations to Support the Financial Services Legislation Amendment Act . Viewed at: 
https://www.mbie.govt.nz/business -and-employment/business/financial -markets -regulation/regulation -of-
financial -advice/regulations -to-support -the-financial -services -legislation -amendment -act/. 
52 FMA, About the New F inancial Advice Regime . Viewed at: 
https://www.fma.govt.nz/compliance/role/fap -new-regime/about -the-changes/ . 
53 MBIE, International Financial Reforms . Viewed at: https://www.mbie.govt.nz/business -and-
employment/business/financial -markets -regulation/international -financial -reforms/ . WT/TPR/S/426 /Rev.1  • New Zealand  
- 111 - 
  obligations for issuers, including obligations to prepare and deli ver annual reports to the NZX that 
contain certain prescribed information, and to make a preliminary announcement to the market after 
the end of each financial year or half year.  
4.96.   The Financial Market Infrastructures Act (FMI Act) was passed in May  2021. It  establishes a 
new framework for regulation and supervision of FMIs, namely systems used for clearing, settling, 
or recording payments; personal property; and other transactions within the financial system. Under 
the Act, the RBNZ and the FMA will be joint  regulators of most FMIs, including central securities 
depositories, securities settlement systems, central counterparties, and trade repositories. The RBNZ 
will be the sole regulator of payments systems under the new regime. The transition period is 
expec ted to run until December  2022.  
4.4.2   Telecommunications  
4.4.2.1   General features and market structure  
4.97.   The main trends highlighted in the previous Review continued to prevail in 
telecommunications. The number of fixed -line telephone connections continued to decline, as mobile 
services became increasingly more attractive. At end -June 2020, there were 1.79  million fixed -line 
connections, down from 1.85  million at end -June 2013. The number of mobile connections grew 
during the same period, and the number of mobile subscribe rs with pre -paid connections remained 
on a downward trend (Table  4.9). While mobile retail revenues increased steadily, in general, the 
revenue from telecommunications activities fluctuated within a tiny margin during the review period.  
Table 4.9 New Zealand telecommunications  snapshot statistics, 2013/14 -2019/20  
 2013/14  2014/15  2015/16  2016/17  2017/18  2018/19  2019/20  
Total industry metrics  
Total 
telecommunications 
retail revenue 
(NZD  billion)  5.17 5.11 5.28 5.37 5.42 5.32 5.12 
Total 
telecommunications 
investment 
(NZD  billion)  1.69 1.77 1.59 1.58 1.66 1.71 1.61 
Fixed -line metrics  
Fixed lines (million)  1.85 1.86 1.87 1.79 1.76 1.85 1.79 
Total fixed broadband 
connections (million)  1.41 1.45 1.50 1.58 1.65 1.70 1.76 
Fixed -line broadband 
connections per 
100 population  31.6 32.0 32.5 32.9 33.7 34.4 34.6 
Fixed monthly data use 
per broadband 
connection (GB)  32 48 69 117 172 207 284 
Fixed wireless ('000)  24 20 27 122 165 191 221 
Chargeable fixed voice 
call minutes (billion)  5.13 4.66 4.34 3.44 3.10 2.72 2.44 
Total fixed -line retail 
revenues (NZD  billion)  2.68 2.58 2.60 2.62 2.58 2.49 2.39 
Mobile metrics  
Mobile connections 
(million)a 5.6 5.8 6.1 6.4 6.4 6.0 6.2 
Active mobile 
connections per 
100 population  124 127 129 134 131 122 122 
Share mobile pre -paid 
(%) 63.6 62.3 60.7 60.3 58.1 52.7 51.8 
Average monthly 
mobile data usage 
(GB) 0.32 0.47 0.72 1.25 2.04 2.75 3.29 
Mobile voice call 
minutes (billion)  5.30 6.63 7.81 8.77 9.34 9.41 10.1 WT/TPR/S/426 /Rev.1  • New Zealand  
- 112 - 
   2013/14  2014/15  2015/16  2016/17  2017/18  2018/19  2019/20  
SMS messages sent 
(billion)  12.0 12.1 11.3 9.2 8.8 8.1 7.3 
Total mobile retail 
revenues  
(NZD  billion)  2.49 2.54 2.68 2.75 2.83 2.83 2.74 
a Pre-pay connections for all years are counted as those active in the prior six months.  
Source:  Commerce Commission (2021), Annual Telecommunications Monitoring Report: 2020 Key Facts . 
Viewed at: https://comcom.govt.nz/__data/assets/pdf_file/0030/247377/2020 -Annual -
Telecommunications -Monitoring -Report -Revised -version -16-March -2021.pdf .  
4.98.   The COVID -19 crisis affected the telecommunications sector through several channels. It 
accelerated growth in fixed broadband data usage, as average fixed broadband usage per month 
increased by 77  GB in 2020 to 284  GB (a growth rate of 37% compared to  2019 when the growth 
rate was 15%). In the mobile communications industry, travel restrictions led to total mobile 
roaming revenue dropping 15% to NZD  96.6 million in the year ending 30  June 2020. Revenue from 
domestic  customers roaming overseas fell by 20%, while revenue from subscribers of overseas 
networks roaming in New  Zealand increased 2% in  2019.54 
4.99.   New Zealand's telecommunications sector hosts a number of privately owned companies. 
The state investment is used, i n complement to private investments, to provide infrastructure. Under 
the Government's Ultra -Fast Broadband (UFB) initiative, Crown Infrastructure Partners  (CIP) is an 
agency in place to manage government investments to provide 85% of New  Zealanders with 
broadband connections offering 100  Mbps download speeds and 50  Mbps upload speed. To deploy a 
fibre network under the UFB programme, CIP entered into contracts with Chorus, Tutahi First Fibre, 
Northpower, and Enable Services Limited (ESL). The most -used UFB  service types in New  Zealand 
are Gigabit Passive Optical Network (GPON) and Point to Point (P2P). Chorus is contracted by the 
Crown for deploying about 70% of the UFB network infrastructure and owns the copper line network 
throughout New  Zealand. Chorus i s a publicly listed company. The Crown provided investment 
funding for the UFB programme through equity and debt instruments with Chorus and three other 
fibre companies (Tutahi First Fibre, Northpower, and ESL) deploying the UFB infrastructure. The 
four companies act as wholesalers for broadband connectivity, with Retail Service Providers (RSPs) 
providing services to end -user customers. The wholesaler companies are prohibited from providing 
retail services. The Telecommunications (New Regulatory Framework) Amendment Act  2018 has 
provisions allowing Chorus to withdraw wholesale copper services only in areas where fibre already 
exists under certain conditions. In areas where fibre is not currently available, Chorus must continue 
to supply wholesale copper serv ices. A Copper Withdrawal Code sets out the minimum requirements 
Chorus must meet before it can stop providing wholesale copper phone and broadband services.55 
The retail market for UFB services is competitive, with numerous RSPs providing services on the 
network.  
4.100.   There are three major international fibre submarine cables: (i)  the Southern Cross Cable, 
the only major cable in New  Zealand between 2000 and 2018, and owned by Southern Cross Cables 
Limited, a partnership between telecommunications providers in New Zealand, Australia, and 
the United  States; (ii)  the Tasman Global Access, connecting New  Zealand to Australia, and owned 
by Spark, Vodafone, and Telstra; and (iii)  the Hawaiki Submarine Cable, connecting New  Zealand to 
the United  States; whose developm ent was supported by the Government in  2018.  
4.101.   Spark New  Zealand is the major player in the fixed -line market, providing nationwide voice 
and broadband services over the copper -wire network. Vodafone owned the cable broadband 
network covering much of Welling ton and Christchurch and also used unbundled copper -wire local 
loops and resale services to offer fixed -line retail services in other parts of the country. Other 
telecommunications retailers also access Chorus's copper lines and electronic equipment to pro vide 
broadband services. As at end -March  2020, the estimated shares of the retail fixed -line broadband 
 
54 Commerce Commission (2021), Annual Telecommunications Monitoring Report: 2020 Key Facts . 
Viewed  at: https://comcom.govt.nz/__data/assets/pdf_file/0030/247377/2020 -Annual -Telecommunications -
Monitoring -Report -Revised -version -16-March -2021.pdf . 
55 Commerce Commission, Copper Withdrawal Code . Viewed at: https://comcom.govt.nz/regulated -
industries/telecommunications/projects/copper -withdrawal -code. WT/TPR/S/426 /Rev.1  • New Zealand  
- 113 - 
  market by connection were Spark (including its sub -brand Skinny) (40%), Vodafone (21%), 
Vocus  (13%), 2degrees (7%), Trustpower (6%), and others (13%).56 
4.102.   The mobile networks are owned by Spark, Vodafone, and 2degrees.57 Alongside these mobile 
network operators, there are a small number of mobile service providers that operate as mobile 
virtual network operators (MVNOs). In 2020, both Spark and Vodafone had 40% of total mobile 
connections, followed by 2degrees (19%); the aggregate share of the MVNOs was 1.4%. Most mobile 
service providers in New  Zealand use predominantly 3G or 4G networks.  
4.103.   Vodafone launched New  Zealand's first 5G network in December  2019 in p arts of Auckland, 
Wellington, Christchurch, and Queenstown. In May  2020, spectrum rights for 5G networks were 
allocated through a direct allocation process. Offers were made to Dense Air (a 
United  Kingdom -based company), Spark, and 2degrees. Vodafone has a lready enough mid -band 
spectrum. While Spark currently has 5G locations in Auckland, Christchurch, Hamilton, Dunedin, 
New Plymouth, and Palmerston North, it announced in August 2021 that it will invest an additional 
NZD 35 million to accelerate its 5G roll -out to deliver 5G coverage to approximately 90% of the 
population by the end of  2023. According to the authorities, all three major mobile network operators 
have commenced deployment of 5G cellular network infrastructure. A draft strategy on the 
managemen t of spectrum for the next five  years published by the Government is currently being 
publicly consulted.58 
4.104.   In 2019, the Commerce Commission published a study on New  Zealand mobile markets to 
better understand the state of competition. It highlighted the fact that increased competition has 
contributed to improved outcomes for consumers through lower prices, increasing quality, and 
greater choice of services.59 
4.105.   According to the 2020 Annual Telecommunications Monitoring Report, in  2020, 
New Zealand's mobile prices were below the OECD average for the entry -level and medium -user 
categories, but above the OECD average for the high -user and ultra -high-user categories. The 
average price of high -speed fixed broadband plans dropped in 2020 but remain ed higher than the 
OECD average; the ultra -high-user category is the only broadband and voice bundle category where 
New Zealand prices are cheaper than the OECD average . The authorities indicate that mobile 
termination is self -regulated through commercial contracts between network operators.  
4.4.2.2   Regulatory regime  
4.106.   The sector continued to be governed by the Telecommunications Act  2001 and associated 
regulations. However, on 18  April 2017, the Act was amended, through the Telecommunications 
(Property Access and Ot her Matters) Amendment Act  2017, to make it easier for people living in 
multi-unit building or those using a shared driveway to connect to UFB in cases involving shared 
property. The Amendment also sets out fibre installation methods and requirements that enable the 
new property access regime. It also created a dispute resolution scheme to deal with contentious 
issues involving property owners and consumers to use. In July  2017, the Minister for 
Communications appointed Utilities Disputes Limited as the app roved scheme provider.60 
 
56 Commerce Commission (2021), Annual Telecommunications Monitoring Report: 2020 Key Facts . 
Viewed  at: https://comcom.govt.nz/__data/assets/pdf_file/0030/247377/2020 -Annual -Telecommunicatio ns-
Monitoring -Report -Revised -version -16-March -2021.pdf . 
57 Spark is a publicly listed company on the New  Zealand and Australian stock exchanges; Vodafone 
is 50% owned by New  Zealand company Infratil and 50% by Canadian company Brookfield Asset Management. 
2degrees is 51.1% owned by Trilogy International, a Canadian -listed, American -based wireless 
telecommunications business, and 49.9% owned by a Dutch company, Tesbrit BV.  
58 Radio Spectrum Management, Five-Year Spectrum Outlook 2022 -2026. Viewed at:  
https://www.rsm.govt.nz/projects -and-auctions/consultations/five -year-spectrum -outlook -2022-2026/ . 
59 Commerce Commission (2019),  Mobile Market Study . Viewed at: 
https://comcom.govt.nz/__data/assets/pdf_file/0022/177331/Mobile -Market -Study -Findings -report -26-
September -2019.PD F. 
60 MBIE, Fast Broadband Policy and Regulation . Viewed at: https://www.mbie.govt.nz/science -and-
technology/it -communicati ons-and-broadband/fast -broadband/policy -and-regulation/ . WT/TPR/S/426 /Rev.1  • New Zealand  
- 114 - 
  4.107.   In addition, on 12  November  2018, the Telecommunications (New Regulatory Framework) 
Amendment Act  2018 reformed the wholesale fibre services, through establishing a new regulatory 
framework for UFB fibre; the deregulation of copper  fixed-line access services in areas where fibre 
services are available to consumers, while retaining regulation in areas where fibre is not available; 
and the increase of regulatory oversight to improve quality of service.61 
4.108.   The institutional framework di d not change during the review period. The MBIE is responsible 
for establishing the telecommunications regulatory environment, including setting the rules within 
which telecommunications companies operate and for the product compliance framework. The 
Comme rce Commission is responsible for overseeing competition in the telecommunications market 
and regulating certain telecommunication services. It can recommend that services be regulated or 
deregulated. The Commission may also set the terms and conditions (i ncluding prices) for regulated 
services through Standard Terms Determinations. It also has powers to request that industry -wide 
services (e.g. number portability) be made available, impose information disclosure requirements, 
and enforce structural remedie s such as separation. The Minister for Communications can accept or 
reject the Commission's recommendations as to whether a service should be regulated or 
deregulated and transmit a "statement of economic policy" to which the Commission must have 
regard. T he industry, acting through the New  Zealand Telecommunications Forum (TCF), has the 
statutory function to develop telecommunications access codes for regulated services, which once 
approved by the Commerce Commission become binding on all industry. The TCF  is also involved in 
developing industry standards and voluntary codes of practices and facilitates dialogue on industry 
issues of common interest.  
4.109.   There are no restrictions on foreign investment in private telecommunications firms, other 
than the provisio ns of the Overseas Investment Act  2005 (Section  2.4). However, the Constitution 
of Chorus provides that no person who is not a New  Zealand national shall have more than 49.9% 
of the total voting shares of Chorus without the prior written approval of the Cr own, and at least 
half of the board of directors must be New  Zealand citizens. There are no -company specific 
restrictions on investment in Spark New  Zealand.  
4.110.   New Zealand does not impose licensing requirements for entry into the telecommunications 
business market and control over retail prices is minimal. However, there are regulatory measures 
in place for access to the networks of major suppliers. The MBIE is responsible for making radio 
spectrum frequency bands available for new uses, including bands for t he 5G network.  
4.4.2.3   Digital inclusion and cybersecurity  
4.111.   COVID -19 further surfaced social inequality in digital access. With essential services like 
health and education forced online, those without access were disadvantaged. The Government has 
made a major cont ribution to reducing the digital divide in recent years, in terms of access to 
telecommunications services. In 2018, the second phase of the Rural Broadband Initiative (RBI2), a 
public programme, was announced to provide fast broadband to the greatest numb er of the 
identified  84,000 under -served rural homes and businesses.62 In addition, as mobile coverage 
currently covers areas where some 95% of New  Zealand's population lives and works, the Mobile 
Black Spots Fund (MBSF) also launched in  2018, aims to impr ove the availability of mobile services 
on state highways and at key tourist destinations, which do not currently have coverage from any 
mobile operator. Contracts totalling around NZD  130 million are in place under RBI2 and MBSF.63 
The Rural Connectivity Group (RCG), a joint venture comprising the three major mobile operators in 
partnership with CIP64 was established as the infrastructure provider under the RBI2 and MBSF 
programmes. The Government committed to provide broadband acce ss to 99.8% of the population 
by 2023.  
 
61 MBIE, Fibre Regulatory Framework . Viewed at: https://www.mbie.govt.nz/science -and-technology/it -
communications -and-broadband/our -role-in-the-ict-sector/fibre -regulatory -framework/ . 
62 CIP, What Is the Mobile Black Spots Fund (MBSF)?  Viewed at: 
https://www.crowninfrastructure.govt.nz/blackspots/what/ . 
63 MBIE, Broadband and Mobile Programmes . Viewed at: https://www.mbie.govt.nz/science -and-
technology/it -communications -and-broadband/fast -broadband/broadband -and-mobile -programmes/ . 
64 The agencies managing the Government's investment in ult ra-fast broadband.  WT/TPR/S/426 /Rev.1  • New Zealand  
- 115 - 
  4.112.   In general, a portion of New  Zealand's telecommunications infrastructure is funded from the 
Telecommunications Development Levy, an industry levy collected from telecommunications 
providers to deliver services not ava ilable commercially or otherwise at an affordable price. The 
Commerce Commission proportionately allocates the Levy amount annually to qualifying 
telecommunications providers that earned more than NZD  10 million in telecommunications revenue 
in the precedi ng financial year. The list of qualifying liable companies is published by the 
Commerce  Commission at the end of June each year.  
4.113.   In March  2019, the Government released a blueprint setting out the role for the Government 
in building a digitally inclusive Ne w Zealand. The blueprint defines being included as having 
convenient access to, and the ability to confidently use, the Internet in the immediate term.65 
4.114.   Increasingly diverse Internet applications, such as through the Internet -of-Things (IoT), 
progressivel y gained importance during the review period. In 2016, for example, one IoT network 
specialist (KotahiNet) began operations. In 2017, two mobile network operators (Vodafone and 
Spark) announced the roll -out of various networks for the IoT.  
4.115.   As telecommunica tions technologies continue to develop, and connectivity continues to 
support New  Zealand's social and economic environment, the importance of protection against cyber 
threats also increases in number, scope, and scale. In 2020, 7,809  cybersecurity inciden ts, with a 
total financial loss of NZD  16.7 million, were reported to the authorities (1,131  incidents costing 
NZD 5.3 million in  2017).66 The Cyber Security Strategy  2019 (covering the period  2019-23) 
outlines the areas where the Government will prioritiz e action and how it is planning to ensure that 
New Zealand is confident and secure in the digital world, with a view to creating a more productive 
and competitive economy.67 The Cyber Security Strategy aims to, inter alia: (i) strengthen cyber 
resilience ( protect most critical assets); (ii)  increase cyber capability (develop skills and tools 
necessary for individuals, businesses, government departments, and organizations to protect 
themselves online); and (iii)  promote international cooperation (boost the c ountry's international 
credibility, including the ability of businesses to be internationally competitive).  
4.116.   New Zealand issued two previous cybersecurity strategies in  2011 and  2015. Among 
measures put in place, the 2011 strategy established the National C yber Security Centre and the 
National Cyber Policy Office. In the framework of the  2015 Strategy, the Computer Emergency 
Response Team (CERT  NZ) was established to respond to cybersecurity threats in New  Zealand, the 
country's first  Cyber Security Summit w as held, and a scheme was developed to help small 
businesses improve their cybersecurity.  
4.117.   Network security is managed under Part  3 of the Telecommunications (Interception 
Capability and Security) Act (TISCA) 2013.68 The purpose of TICSA is to prevent, suff iciently 
mitigate, or remove security risks arising from the design, build, or operation of a public 
telecommunications network, or interconnection to or between public telecommunications networks 
in New  Zealand or with networks overseas. It establishes a framework under which network 
operators are required to engage with the Government Communications and Security Bureau, 
through the National Cyber Security Centre about changes and developments with their networks 
where these intersect with national securit y. The legislation sets out a path to identify and address, 
prevent, mitigate, or remove network security risks that may arise.  
 
65 Digital Government New  Zealand, The Digital Inclusion Blueprint . Viewed at: 
https://www.digital.govt.nz/d msdocument/113 -digital -inclusion -blueprint -te-mahere -mo-te-whakaurunga -
matihiko/html . 
66 CERT NZ, 2020 Report Summary . Viewed at: https://www.cert.govt.nz/about/quarterly -report/2020 -
report -summary/ . 
67 New Zealand Government (2019), New Zealand 's Cybersecurity Strategy 2019 . Viewed at: 
https://dpmc.govt.nz/sites/default/files/201 9-07/Cyber%20Security%20Strategy.pdf . 
68 National Cyber Security Centre, Telecommunications (Interception Capability and Security) Act 2013 . 
Viewed at: https://www.ncsc.govt.nz/ticsa/ . WT/TPR/S/426 /Rev.1  • New Zealand  
- 116 - 
  4.118.   The Government is currently developing a Digital Strategy for New  Zealand69, which will set 
out the goals, priorities, and activities for short - and longer -term goals. The Strategy will be 
structured around three key themes: trust, inclusion, and growth. According to the authorities, public 
consultation on the development of this strategy has recently concluded  and the final strategy will 
be published in early  2022.  
4.119.   To reflect changes in technology and in the wider economy and society, and to strengthen 
privacy protections, the Privacy Act  2020 was adopted to replace the Privacy Act  1993.70 The Act is 
enforced t hrough the Privacy Commissioner, which has the power to investigate any action which 
appears to interfere with the privacy of an individual and can do so either on a complaint made to 
the Commissioner or on the Commissioner's own initiative. It provides th e principles for protecting 
personal information and puts responsibilities on agencies and organizations about how they must 
collect, use, disclose, store, retain, and give access to personal information. It applies to any person 
or body of persons, whethe r corporate or unincorporated, and whether in the public sector or in the 
private sector, and it has extraterritorial scope, i.e. it applies to any actions taken by an overseas 
agency in the course of carrying on business in New  Zealand.  
4.120.   The Act diverges f rom data protection laws in place in other jurisdictions in some respects. 
For example, the Act does not expressly provide a "right to be forgotten" or a right to data portability, 
and as a civil complaints system it has a relatively lenient penalty struct ure for non -compliance, as 
the Commissioner may only fine companies up to NZD  10,000 for offences under the Act. However, 
the Act includes new mandatory data breach notification requirements, and new requirements on 
cross-border transfers of personal infor mation. For example, an organization or business may only 
disclose personal information to an agency outside of New  Zealand if the receiving agency is subject 
to similar safeguards to those in the Privacy Act. If a jurisdiction does not offer similar prote ctions, 
the individuals concerned must be fully informed that their information may not be adequately 
protected and they must expressly authorize the disclosure.  
4.4.3   Transport services  
4.4.3.1   Overview  
4.121.   The transport sector is crucial for the country's tourism industry , and international 
merchandise trade. The sector accounts for 5% of GDP and employs 108,000  workers (4% of total 
employment).71 Almost all of New  Zealand's international trade takes place through air and maritime 
transport. Domestically, road and rail fre ight services are mainly used by the agriculture sector and 
the dairy industry.  
4.122.   The Ministry of Transport is the main agency providing expert advice to the Government in 
all transport -related matters, including legislative, regulatory, policy, and funding issues. The 
Ministry  also oversees the performance of four Crown entities with transport functions: the 
Civil Aviation Authority (CAA), Maritime New  Zealand, NZ  Transport Agency (land transport), and 
the Transport  Accident Investigation Commission. In addi tion, three state -owned enterprises 
(Airways  Corporation of New  Zealand Limited, New  Zealand Railways Corporation, and 
Meteorological Services of New  Zealand Limited) have transport -related functions, while local 
authorities are primarily responsible for r oad networks and public transport services, and some of 
them own seaports and airports, or share ownership with the Crown.  
4.123.   Carbon emissions from transport activities are a major part of New  Zealand's climate 
challenge, representing some 20% of total emissi ons and 43% of CO 2 emissions. The national draft 
Emissions Reduction Plan, which will create binding domestic commitments when finalized in 
April 2022, sets out a range of proposed interventions to reduce transport emissions by  41% 
by 2035. As part of this  plan, the Government is currently considering legislation to set tough 
 
69 New Zealand Government , Towards a Digital Strategy for Aotearoa . Viewed at: 
https://www.digital.govt.nz/assets/Digital -government/Strategy/Towards -a-Digital -Strategy -for-Aotearoa -
discussion -document.pdf .  
70 New Zealand Legislation, Privacy Act 2020. Viewed at: 
https://www.legislation.govt.nz/act/public/2020/0031/latest/LMS23223.html?search=ts_act%40bill%40regulat
ion%40deemedreg_privacy_resel_25_a&p=1#LMS23417 . 
71 MBIE (2019), Transport Fact Sheet. Viewed at: https://www.mbie.govt.nz/assets/transport -
factsheet.pdf . WT/TPR/S/426 /Rev.1  • New Zealand  
- 117 - 
  CO2 standards for light vehicles, has introduced rebates for low -emissions vehicles, is considering 
congestion charging in major centres, is developing a sustainable biofuels mandate, and is requiring 
all new public transport buses to have zero emissions by  2025.  
4.4.3.2   Air transport  
4.124.   Air transport is highly important to New  Zealand's international trade for high -value products 
that require a short time to market. Although air freight accounts for only 0.3% of New  Zealand's 
trade (imports and exports) by weight, it accounts for 19% of trade by value.  
4.125.   The 2012 National Airspace and Air Navigation Plan continues to be New  Zealand's guidance 
document in the air transport sector.72 It repre sents the Government's views for airspace, air 
navigation, and air traffic management, and it clarifies how New  Zealand aims to modernize its 
airspace. According to the authorities, some progress has been achieved under the Plan, including, 
the implementat ion of performance -based navigation approaches at the main international airports 
(in Auckland, Wellington, and Christchurch)73, and modernization of some critical airport 
infrastructure.  
4.126.   COVID -19 and the collapse of international air services have had a d etrimental impact on 
the flow of essential goods and passenger movements. As a response, the Government implemented 
a temporary financial support package, the International Air Freight Capacity Scheme (IAFC) to 
support essential connectivity as at the begi nning of August  2020. A total of NZD  372 million was 
allocated to finance the scheme through to April  2021. The objectives of the scheme were to 
maintain essential trade flows, including the import of medical supplies, maintain air connectivity for 
passeng ers and future tourism capacity, and ensure the sustainability of the aviation sector. Only 
flights that do not get enough passengers and freight at a level that is economically viable were 
eligible for support. The IAFC ended in April  2021.  
4.127.   In May  2021, t he Government established a new temporary scheme, the Maintaining 
International Air  Connectivity Scheme (MIAC), to support continued air services. The scheme is 
scheduled to end on 31  March  2022. An open -market procurement process was operated in 
April 2021 and all potential providers, including passenger airlines, dedicated freight carriers, and 
others in the sector, were eligible to apply.  
4.128.   To support domestic connectivity, the Government allocated NZD  30 million to the Essential 
Transport Connectivity  (ETC) Scheme for aviation initiatives and an additional NZD  20 million for 
ETC non -aviation initiatives.  
4.129.   Prior to COVID -19, New  Zealand had 5  airports receiving scheduled international air services 
and 28  regional airports. As at the end of November  2021, onl y two of these airports were receiving 
international flights. Auckland International Airport is New  Zealand's busiest airport, followed by the 
international airports of Christchurch and Wellington. The movements of air freight are largely 
concentrated at A uckland and Christchurch airports. New  Zealand's international airports are 
managed and operated by autonomous companies with both private and public ownership (such as 
Auckland International Airport Limited):  
• Christchurch International Airport Limited ha s three shareholders: the local council with 
75%, and two Ministers of the Crown (Central Government) holding the remaining 25%.  
• Wellington International Airport Limited has two  shareholders: the local council with 
34%, and Infratil, a private investment firm, with 66%.  
 
72 Ministry of Transport (2012), National Airspace Policy of New  Zealand . Viewed at: 
https://www.transport.govt.nz//assets/Uploads/Policy/National -Airspace -Policy -of-New-Zealand -April-
2012.pdf . 
73 Performance -based  navigation is part of a 10 -year programme to coordinate the various activities of 
New Zealand's aviation -related agencies (such as Airways Corporation, the Ministry of Transport, and the 
New Zealand Defence Force) under the National Airspace and Air Navig ation Plan to deliver safety, economic, 
environmental , and social benefits.  WT/TPR/S/426 /Rev.1  • New Zealand  
- 118 - 
  • Dunedin International Airport Limited has two shareholders: the local council with  50%, 
and shareholding Ministers (the Crown) with 50%.  
• Queenstown  Airport Corporation has two shareholders: Auckland International Airport 
Limited with 24.9 9%, and the local council holds 75.01%.  
Regional airports are either owned by local authorities or through joint ventures between local 
authorities and the Crown.  
4.130.   There are two New  Zealand -based international passenger airlines: Air New Zealand, the 
national flag carrier; and Air Chathams (which operates to the Australian territory of Norfolk Island). 
New Zealand has seen a significant reduction in the number of scheduled airlines due to the 
COVID -19 pandemic. At end -November 2021, th ere were 15 (24 during the previous review period)74 
foreign airlines operating aircraft on a scheduled or semi -frequent basis (passenger and/or cargo) 
to and from New  Zealand, and an additional  18 (21 during the previous review period)75 airlines 
serving New Zealand on a code -sharing basis. The Crown holds a 52.3% stake in Air  New Zealand. 
It also holds a preferential "Kiwi share", which enables the Government to impose a 10% cap on 
individual foreign shareholdings in the national airline, in order to main tain substantial ownership 
and effective control of Air New  Zealand. The Crown also holds 100% ownership of Airways 
Corporation of New  Zealand Limited, which is the sole provider of air navigation and air traffic 
management services in the country.  
4.131.   The air  transport sector is subject to the provisions of the Overseas Investment Act  2005 
(Section  2.4). No specific restrictions apply on foreigners providing airport services and airport 
auxiliary services, or computer reservation system services.  
4.132.   The Commerce Amendment Act  2018 strengthened the regulatory regime for major 
international airports in New  Zealand by introducing a short -form inquiry process and clarifying how 
changes to the type of regulation can be made.  
4.133.   The Civil Aviation Act  1990 and the Airport Authorities Act  1966 are the main sector -specific 
statutes governing the industry.  
4.134.   The Airport Authorities Act 1966 (as amended) requires all airport companies to consult with 
their airline customers on charges and major capital expenditures and disclose c ertain financial 
information on an annual basis. To prevent potential abuse of monopoly power at the Auckland, 
Wellington, and Christchurch airports, the Commerce Amendment Act 2008 subjects specified airport 
services (airfield activities, and certain pass enger terminal activities) to additional information 
disclosure requirements, such as disclosing information on their financial performance and quality 
of airport services. They also must disclose information on their price setting framework, pricing 
metho dology, and an explanation of the extent to which the application of their pricing leads to 
efficient prices. On 25  October  2018, The Commerce Amendment Act was adopted and implemented 
to strengthen the regulatory regime for New  Zealand's airports, by incl uding a new inquiry process 
that may lead to further regulation being imposed on specified airport activities undertaken by those 
airports.76 According to the authorities, a new Civil Aviation Bill was introduced on 8  September  2021 
and is currently in fro nt of a parliamentary Select Committee for consideration.  
4.135.   Under the Civil Aviation Act  1990, an airline wishing to operate a scheduled international air 
service to or from New  Zealand is required to hold a scheduled international air service licence or an 
open aviation market licence. The latter is applicable only for scheduled services between 
New Zealand and a list of countries/territories specifically designated by the Minister of Transport. 
 
74 Aircalin, Air Tahiti Nui, Air Vanuatu, Cathay Pacific, China Airlines, China Eastern Airlines, 
China  Southern Airlines, Emirates Airline, Federal Express, Fiji Airways, Jetstar, Korean Air, Qantas Airways, 
Qatar Airways, and Singapore Airlines.  
75 All Nipp on Airways, American Airlines, Asiana, Austrian Airlines, British Airways, 
EVA Airways  Corporation, Finnair, Iberia, Japan Airlines, JetBlue Airways Corporation, Lufthansa, Oman Air, 
Scandinavian Airlines System, SriLankan Airlines, Swiss International, TA TA SIA Airlines, Turkish Airlines, and 
United  Airlines.  
76 MBIE, Effectiveness of Information Disclosure Regulation for Airports . Viewed at: 
https://www.mbie.govt.nz/business -and-employment/business/competition -regulation -and-policy/economic -
regulation -of-goods -or-services/airport -regulation/ . WT/TPR/S/426 /Rev.1  • New Zealand  
- 119 - 
  In 2015, the list consisted of Australia, Brunei  Darussalam , Chile, the Cook  Islands, Luxembourg, 
Malaysia, Samoa, Singapore, Tonga, the United  Arab Emirates, and the United  States.  
4.136.   As was the case during the previous review period, an application for a scheduled 
international air services licence must be submitted to  the Secretary of Transport. To qualify for a 
licence, an applicant airline must have been designated by its Government according to the 
provisions of the  air services agreement (ASA) between that Government and the Government of 
New Zealand. In addition, an applicant may be required to provide evidence of the nationality of the 
control of the airline, and evidence of either the nationality of its ownership or its principal place of 
business and place of incorporation. To comply with safety and security req uirements, an applicant 
must also obtain a foreign air operator certificate from the Director of the CAA. Under a mutual 
recognition agreement with Australia, New  Zealand and Australian airlines do not need to hold safety 
certifications from both countries ' civil aviation authorities.  
4.137.   Under the Ministry of Transport, the CAA is the regulatory authority for civil aviation in 
New Zealand. It is in charge of establishing and enforcing safety rules for all air services operators. 
Air traffic control services ar e provided by New  Zealand Airways Corporation, which is a state -owned 
enterprise, established under the State -Owned Enterprises Act  1986.  
4.138.   As at 30  October  2021, New  Zealand had signed ASAs with 71  partners across all continents 
(Table  A4.1).77 According to  the authorities, six of the ASAs, however, are suspended as a result of 
New Zealand being a signatory to the Multilateral Agreement on the Liberalization of International 
Air Transportation (MALIAT), a multilateral open skies ASA, which is open to accessi on by other 
parties. Currently, the parties to the MALIAT are Brunei  Darussalam , the Cook Islands, Chile, 
New Zealand, Singapore, Tonga, and the United  States. Mongolia participates for cargo only.  
4.139.   The authorities indicate that they continue to advocate fo r open skies agreements, consistent 
with the International Air Transport Policy of New  Zealand.  
4.4.3.3   Maritime transport  
4.140.   Maritime transport plays a key role for New  Zealand freight movement. Shipping services 
are provided by both New  Zealand -based ship operators  and international shipping lines. The 
New Zealand operators tend to concentrate on the movement of domestic cargoes. Domestic 
transport of petroleum products is primarily from the Northland refinery via pipeline to Auckland and 
Auckland Airport and coasta l distribution across the country. A key cement manufacturer in the 
Northland distributes by coastal ships and then road and rail.  
4.141.   The authorities indicate that no significant changes took place during the review period. The 
Maritime Transport Act 1994 sets out the legal framework for maritime services, including licensing 
requirements for ships and crew, and protection of the maritime environment. Under the Act, 
Maritime New  Zealand, a Crown entity, is responsible for developing and monitoring rules and 
standards for safety, security, and environmental matters in maritime transport. The entity is also 
responsible for implementing the Maritime Security Act  2004, administering the 
New Zealand  Register of Ships (as per the Ship Registration Act  1992) and ensuring compliance with 
international maritime and marine environment protection conventions.78 
4.142.   Three categories of ships are allowed to carry coastal cargo under the Maritime Transport 
Act: (i)  New Zealand ships; (ii)  foreign ships passing through  New Zealand to unload import cargo 
or load export cargo; and (iii)  overseas -registered ships operated or controlled by a New  Zealand 
entity, provided that the crew is subject to national law. Any other ship is not allowed to carry coastal 
cargo unless it receives authorization to do so, provided that no New  Zealand ship or foreign ship 
on an international voyage is available.  
4.143.   New Zealand -owned ships (i.e. ships that are majority or entirely owned by New  Zealand 
nationals) must be registered under the Ship Registration Act  1992. Foreign persons are only allowed 
to register a ship under the country's flag in co -ownership with a majority of New  Zealand nationals. 
 
77 Signature/entry into force dates can be viewed at: https://www.treaties.mfat.govt.nz/ . 
78 Maritime New  Zealand, Legislation  We Administer . Viewed at: 
https://www.maritimenz.govt.nz/about/legislation -and-regulations/legislation -we-administer.asp . WT/TPR/S/426 /Rev.1  • New Zealand  
- 120 - 
  When the ship is subject to shareholding, more than half of the shares in the ship must be owned 
by New  Zealand nationals.  
4.144.   The Commerce Act  2017 repealed provisions of the Shipping Act 1987 that previously applied 
to competition in international shipping and exempted international shipping from the competition 
regulation under the Commerce Act  1986. Th e Act amended the Commerce Act to provide qualified 
exceptions in relation to international liner shipping services. The exceptions allow cooperative 
price-fixing and capacity -limiting arrangements that have the effect of improving service supplied to 
owne rs or consignors of goods carried at sea.  
4.145.   The Port Companies Act 1988 provides for the formation of port companies to carry out 
port-related commercial activities and control the ownership thereof. Currently, 13  port companies 
are incorporated under the Ac t. The Act does not impose any limitation on the acquisition or holding 
of port company shares by private national or foreign persons, but acquisitions by overseas persons 
above the specified threshold would need prior consent under the Overseas Investment  Act. 
4.146.   Private companies may also undertake auxiliary services activities in seaport areas. In  2021, 
however, private shareholding in seaport companies remained limited: 8 of the 13 port companies 
were entirely owned by local authorities.  
4.147.   The two largest po rt companies are Port of Tauranga and Ports of Auckland. In  2020, the 
two companies owned 51% of the total assets of the 12  ports.  Tauranga is New  Zealand's largest 
export port (48% of total exports by value in  2020), and Auckland is the largest import por t (51%  of 
total imports by value).79 
4.4.4   Tourism  
4.148.   Due to the COVID -19 effects, New  Zealand welcomed some 53,000  international visitors in 
the year ending March  2021 (down from approximately 3.7  million in 2020) (Table 4.10).  
4.149.   In the year ending March  2020, the top six markets comprised 70% of total 
international  visitor numbers, and included Australia (41%), the United  States (10%), the 
United  Kingdom (6%), China (9%), Germany (2%), and Japan (2%). Hotel occupancy rates reflected 
this growth pattern, rising from 64% in 2015 to 69% in 2018, before plateauing at around 68.6% 
in the year ending September  2019.80 
Table 4.10 Visitors by key markets with percentage of total, 2015 -21 
 2015  2016  2017  2018  2019  2020  2021  
Total visitors  2,947,901  3,255,463  3,543,631  3,819,817  3,867,756  3,651,967  52,690  
Australia  1,273,152  
(43%)  1,364,736  
(42%)  1,406,256  
(40%)  1,495,392  
(39%)  1,491,000  
(39%)  1,491,252  
(41%)  15,106  
(29%)  
China  295,552  
(10%)  377,840  
(12%)  404,384  
(11%)  437,696  
(11%)  434,323  
(11%)  328,145  
(9%) 2,155  
(4%) 
United  States  226,960  
(8%)  253,792  
(8%) 312,816  
(9%)  340,144  
(9%) 362,394  
(9%)  347,629  
(10%)  6,123  
(12%)  
United 
Kingdom  199,760  
(7%)  213,792  
(7%) 222,784  
(6%)  254,832  
(7%) 230,307  
(6%)  223,102  
(6%) 6,855  
(13%)  
Germany  81,152  
(3%)  90,496  
(3%) 102,608  
(3%)  102,864  
(3%) 102,107  
(3%)  91,067  
(2%) 718 
(1%) 
Japan  83,392  
(3%)  91,344  
(3%) 102,320  
(3%)  102,416  
(3%) 99,300  
(3%)  90,326  
(2%) 496 
(1%) 
Note:  Year ending in March.  
Source:  Information provided by the authorities.  
 
79 Controller and Auditor -General (2021), Results of Our 2019/20 Audits of Port Companies . Viewed at: 
https://oag.parliament.nz/2021/port -companies/part1.htm#port_companies . 
80 The last Accommodation Survey  published by Stats NZ was for the year ending September  2019 
(Stats NZ, Accommodation Survey: September 2019 . Viewed at: https://www.stats.govt.nz/information -
releases/accommodation -survey -september -2019). In June  2020, it was replaced by the Accommod ation Data 
Programme  (Accommodation Data Programme. Viewed at:  https://freshinfo.shinyapps.io/ADPReporting/ ). 
However, due to different methodologies and the gap in accommodation statistics, they  are not directly 
comparable.  WT/TPR/S/426 /Rev.1  • New Zealand  
- 121 - 
  4.150.   Until the beginning of 2020, before the outbreak of COVID -19, tourism was New  Zealand's 
biggest export industry. In the year ended March  2020, tourism generated a direct contribution of 
NZD 16.3 billion or 5.5% to New Zealand's GDP. The indirect value added by industries that support 
tourism generated an additional NZD  11.2 billion, or 3.8% of GDP. Tourism was New  Zealand's 
largest export earner (20% of exports), directly employing 218,580  people, representing 7.9% of 
total employment, and generating NZD  3.9 billion in goods and services tax revenue.  
4.151.   Following the outbreak of COVID -19, for the year ending March 2021, provisional estimates 
indicate that tourism's direct contribution to New  Zealand's GDP decreased to N ZD 8.6 billion 
(2.9%  of GDP). The indirect value added by industries that support tourism decreased to 
NZD 5.8 billion (1.9% of GDP). Tourism accounted for 2.1% of total exports (down by 
17.9 percentage points), its employment decreased to 146,295 (down  72,285), accounting for 5.2% 
of total employment (down by 2.7  percentage points); and it generated 2.4  billion in goods and 
services tax (down by  37.7%).  
4.152.   While the travel services category accounted for over 60% of services exports in 
between  2014 and 2018, it eased to slightly less than 60% for the years ending March  2019 
and 2020, before plummeting to  35% in the year ending March  2021.  
4.153.   Foreign investment in tourism is subject to the provisions of the Overseas Investment 
Act 2005 (Section  2.4). New  Zealand h as no stand -alone legislation that regulates the tourism 
sector. The Government's role in the tourism sector consists mainly of setting strategy, providing 
funding to promote New  Zealand as a tourism destination, and investing in facilities and 
infrastruct ure to support visitor experiences.  
4.154.   The 2019 New  Zealand Government Tourism Strategy sets out a stewardship role for 
Government in tourism, to ensure tourism enriches New  Zealand through more productive, 
sustainable, and inclusive growth. Priority actions for delivering this include coordination across the 
tourism system, the development of long -term sustainable funding mechanisms, the facilitation of 
destination management and planning, and better data and insight.  
4.155.   In 2019, the International Visitor Conser vation and Tourism Levy was introduced. 
This NZD 35 levy, which applies to most international visitors to New  Zealand, is used to invest in 
projects that will help to create productive, sustainable, and inclusive tourism growth that protects 
and supports t he environment.  
4.156.   In response to COVID -19, the New  Zealand Government has taken steps to support 
New Zealand's tourism sector. In  2020, immediate support came from economy -wide stimulus 
measures, including NZD  1.8 billion through a Wage Subsidy scheme and NZ D 285 million through 
a Small Business Cash Flow scheme. A NZD  400 million Tourism Recovery Fund was introduced 
in 2020, providing funding for a range of support initiatives including a Strategic Tourism Assets 
Protection programme to protect core tourism assets and offerings; a Tourism Transitions 
Programme to deliver advice and support to tourism businesses on issues such as how to pivot 
towards the domestic market, scale, back or hibernate operations, and how to build digital capability; 
and the New  Zealand Tourism Futures Taskforce, established to identify changes that could be made 
to the tourism system to enrich New  Zealand and enhance community well -being.  
4.157.   A further NZD  200 million was provided in  2021 through the Tourism Communities: Support, 
Recover y and Re -set Plan. The Plan aims to ensure the immediate survival of the tourism sector and 
contains initiatives that focus on ensuring tourism is sustainable and resilient in the future. It 
incorporates investments in small business support, tourism infra structure, the conservation estate, 
Māori tourism development, economic and regional development and diversification in regions 
previously reliant on international tourism, and mental well -being support for workers in the tourism 
industry. According to the  authorities, funding was also allocated for an Industry Transformation 
Plan, which will build on previous work by, inter alia, the Tourism Futures Taskforce, the 
Parliamentary Commissioner for the Environment, and the Climate Change Commission to transfor m 
tourism into a more sustainable model.  
4.158.   The MBIE is the country's monitoring agency and is responsible for tourism policy and 
regulation. Its Tourism Policy Unit provides guidance to the Government and works with other 
government departments on key touris m policy issues. Under the New  Zealand Tourism Board WT/TPR/S/426 /Rev.1  • New Zealand  
- 122 - 
  Act 1991, Tourism New  Zealand (TNZ) is responsible for marketing New  Zealand to the world as a 
tourist destination.81 Qualmark Limited and Visitor Information Network Incorporated, its 
two subsidiary organizations, are in charge of improving visitor satisfaction and product quality. The 
New Zealand Māori Arts and Crafts Institute seeks to encourage, foster, and promote a ll types of 
Māori culture and the practice and appreciation of Māori arts and crafts.  
4.159.   To support access to information about the tourism industry, the MBIE developed the 
Tourism Evidence and Insights Centre (TEIC), in collaboration with representatives fro m the tourism 
industry, academia, and central and local government. The TEIC, launched in  2021, provides a 
central location for tourism data, reports, and articles and includes an interactive hub for sharing 
tourism data and insights to help measure the im pact of tourism on New  Zealand.  
4.160.   The Tourism Chief Executives' Group was established in 2016 and is made up of chief 
executives of key central government agencies. It helps provide cross ‑portfolio coordination and 
strategic oversight to deliver on tourism o bjectives. The Group aims to coordinate and align the 
Government's tourism ‑related activities by, inter alia, providing strategic oversight, facilitating 
information sharing, and helping manage relationships across a range of agencies whose portfolios 
intersect with the tourism sector, including the Departments of Conservation and Internal Affairs 
and the Ministry of Culture and Heritage and the Ministry of Transport.  
4.161.   Local governments are increasingly involved in tourism development through regional 
touris m organizations and have received over NZD  40 million to implement destination management 
and planning, and encourage more people to explore their regions. They take measures to attract 
visitors to their regions and provide local facilities and infrastruct ure and enforce any related local 
bylaws.  
 
81 Following the closure of New  Zealand's international borders, Tourism New  Zealand temporarily 
pivoted to encourage New  Zealanders to travel domestically.  WT/TPR/S/426 /Rev.1  • New Zealand  
- 123 - 
  5  APPENDIX TABLES  
Table A1. 1 Merchandise exports by HS section and major chapter/subheading,  
2015 -21 
HS Section/chapter/subheading  2015  2016  2017  2018  2019  2020  2021  
Total exports (USD billion)  34.4 33.7 38.1 39.8 39.5 38.9 44.8  
(% of total exports)  
01 Live animals and products  42.6 40.7 43.6 42.7 44.9 45.3 45.9 
02 Meat and edible meat offal  13.9 12.2 12.3 6.9 13.4 13.5 13.7 
0202 Meat of bovine animals; frozen  6.0 5.0 4.7 4.7 5.2 5.4 5.5 
0204 Meat of sheep or goats; fresh, 
chilled, or frozen  6.3 5.5 6.1 6.6 6.5 6.5 6.5 
03 Fish, crustaceans, molluscs, and other 
aquatic invertebrates  3.0 3.3 3.0 0.4 3.1 2.7 2.7 
04 Dairy produce, birds' eggs, natural honey  24.1 23.7 26.8 11.5 26.9 27.3 27.8 
0402 Milk and cream; concentrated or 
containing added sugar or other 
sweetening matter  13.0 12.0 13.5 12.5 14.3 15.0 15.7 
0405 Butter and other fats and oils derived 
from milk; dairy spreads  4.8 5.1 6.2 6.6 5.8 4.9 4.6 
0406 Cheese and curd  3.4 3.6 3.6 3.3 3.4 3.4 3.3 
02 Vegetable products  6.2 7.2 6.5 6.9 7.2 8.1 7.6 
08 Edible fruit and nuts  4.7 5.6 5.0 5.6 5.7 6.6 6.2 
03 Fats and oils  0.3 0.4 0.4 0.4 0.3 0.3 0.5 
04 Prepared food, beverages, and tobacco  10.1 11.5 11.4 11.5 12.1 12.7 11.1 
19 Preparations of cereals, flour, starch, or 
milk; pastrycooks' products  1.8 2.5 2.8 3.2 3.8 4.2 3.2 
21 Miscellaneous edible preparations  2.2 2.5 2.3 2.2 2.3 2.2 1.9 
22 Beverages, spirits, and vinegar  3.6 3.8 3.7 3.5 3.6 3.9 3.6 
05 Mineral products  2.0 1.6 1.8 2.0 1.6 0.9 1.1 
06 Chemicals and products thereof  6.1 4.8 4.4 3.9 4.0 4.4 4.4 
35 Albuminoidal substances; modified 
starches; glues; enzymes  3.0 2.5 2.3 1.9 2.1 2.4 2.7 
07 Plastics and rubber  1.1 1.1 1.0 1.0 1.0 1.0 0.9 
08 Raw hides and skins; leather, furskins and 
articles thereof  1.2 1.0 0.8 0.8 0.6 0.4 0.4 
09 Wood, cork, straw  7.2 8.5 8.7 9.1 8.4 7.5 8.8 
44 Wood and articles of wood; wood charcoal  7.2 8.5 8.7 9.1 8.4 7.5 8.7 
 4403 Wood in the rough  4.1 5.3 5.7 6.2 5.8 5.1 6.3 
10 Pulp of wood; paper and paperboard  2.6 2.5 2.5 2.5 2.1 1.9 2.0 
11 Textiles and textile articles  2.9 2.6 1.9 1.9 1.7 1.4 1.5 
12 Footwear, headgear, etc.  0.1 0.1 0.1 0.1 0.1 0.1 0.1 
13 Articles of stone, plaster, cement  0.2 0.2 0.2 0.2 0.2 0.1 0.2 
14 Precious stones and metals  1.6 1.4 1.3 1.3 1.2 1.0 0.9 
15 Base metals and articles thereof  3.9 3.6 3.7 4.0 3.6 3.2 3.8 
76 Aluminium and articles thereof  2.1 2.0 2.1 2.2 2.0 1.7 2.2 
16 Machinery, electrical equipment  5.7 5.4 5.0 5.2 4.9 4.5 4.9 
84 Machinery and mechanical appliances, 
parts thereof  3.5 3.3 3.1 3.2 3.1 2.8 3.1 
85 Electrical machineries and parts thereof  2.2 2.1 1.9 2.0 1.8 1.7 1.8 
17 Transport equipment  1.5 1.8 1.2 1.0 1.1 1.8 1.1 
18 Precision equipment  1.7 1.7 1.7 1.6 1.7 2.6 2.2 
90 Optical, photographic, measuring, medical 
instruments  (..) 1.7 1.7 1.6 1.6 1.7 2.6 2.2 
19 Arms and ammunition  0.0 0.0 0.0 0.0 0.0 0.0 0.0 
20 Miscellaneous manufactured articles  0.4 0.5 0.4 0.4 0.4 0.3 0.3 
21 Works of art, etc.  0.1 0.1 0.1 0.1 0.1 0.1 0.1 
Other  2.4 3.2 3.3 3.4 3.1 2.4 2.2 
Source:  WTO Secretariat calculations, based on UN Comtrade database.  
 
  WT/TPR/S/426 /Rev.1  • New Zealand  
- 124 - 
  Table A1. 2 Merchandise exports by destination, 2015 -21 
  2015  2016  2017  2018  2019  2020  2021  
Total exports (USD billion)  34.4 33.7 38.1 39.8 39.5 38.9 44.8  
(% of total exports)  
Americas  16.2 14.7 13.4 13.1 12.7 14.4 13.7 
United  States  11.8 10.9 9.9 9.6 9.4 11.0 10.6 
Other America  4.5 3.7 3.5 3.5 3.2 3.4 3.1 
 Canada  1.4 1.2 1.3 1.3 1.2 1.3 1.1 
 Mexico  0.7 1.0 0.7 0.6 0.6 0.5 0.7 
Europe  11.4 11.0 10.0 10.4 9.6 9.5 9.0 
EU-27 6.8 6.7 6.2 6.2 5.5 5.4 5.1 
 Germany  1.4 1.4 1.3 1.5 1.4 1.6 1.3 
 Netherlands  1.7 1.7 1.6 1.5 1.3 1.2 1.2 
 France  0.8 0.8 0.6 0.6 0.6 0.8 0.7 
EFTA 0.3 0.3 0.3 0.3 0.4 0.3 0.3 
Other Europe  4.3 4.0 3.5 3.9 3.7 3.9 3.6 
 United  Kingdom  3.4 3.0 2.7 2.7 2.5 2.5 2.2 
 Other Europe, n.e.s.  0.6 0.7 0.6 1.1 1.0 1.2 1.3 
CISa 0.5 0.6 0.6 0.4 0.6 0.7 0.5 
Africa  4.0 4.0 3.3 2.9 2.5 2.5 2.2 
Egypt  1.0 0.9 0.5 0.6 0.5 0.4 0.5 
Middle East  4.1 3.5 3.8 3.6 3.4 3.6 3.1 
United Arab Emirates  1.7 1.3 1.6 1.4 1.3 1.4 1.4 
Saudi Arabia, Kingdom of  1.2 1.1 1.1 1.0 1.1 1.3 1.0 
Asia 62.9 65.2 67.9 68.6 70.3 68.7 71.1 
China  17.6 19.5 22.3 24.2 27.9 27.8 31.7 
Japan  6.0 6.1 6.0 6.1 5.8 5.9 5.7 
Other Asia  39.2 39.6 39.6 38.3 36.6 35.0 33.6 
 Australia  17.0 17.1 16.4 15.9 14.5 13.6 12.4 
 Korea,  Republic  of 3.2 3.1 2.8 3.0 2.8 2.9 3.1 
 Chinese  Taipei  2.3 2.2 2.1 2.1 2.0 2.2 2.1 
 Indonesia  1.7 1.8 1.8 1.7 1.8 1.8 2.1 
 Singapore  2.2 2.3 2.1 2.2 1.9 1.8 2.0 
 Hong Kong, China  1.5 1.6 2.3 2.0 2.1 2.0 1.9 
 Thailand  1.6 1.7 1.6 1.6 1.7 1.6 1.7 
 Malaysia  1.9 1.6 1.9 1.8 1.8 1.8 1.6 
 Viet Nam 1.1 1.1 1.3 1.2 1.3 1.4 1.3 
 Philippines  1.3 1.3 1.3 1.3 1.5 1.2 1.1 
 India 1.3 1.3 1.3 1.2 1.2 0.8 0.7 
 Bangladesh  0.4 0.4 0.6 0.6 0.7 0.6 0.7 
 Fiji 0.9 1.0 0.9 0.9 0.7 0.7 0.6 
 Sri Lanka  0.5 0.5 0.7 0.7 0.7 0.7 0.6 
Other  1.0 1.1 1.0 1.0 0.9 0.6 0.5 
Memorandum:         
EU-28 10.2 9.7 8.9 8.9 8.0 7.9 7.3 
APEC 72.5 73.8 75.2 75.9 77.5 78.1 80.2 
a Commonwealth of Independent States, including certain associate and former member States.  
Source:  WTO Secretariat calculations, based on UN Comtrade database.  
 
  WT/TPR/S/426 /Rev.1  • New Zealand  
- 125 - 
  Table A1. 3 Merchandise imports by HS section and major chapter/subheading,  
2015 -21 
HS Section/chapter/subheading  2015  2016  2017  2018  2019  2020  2021  
Total imports (USD billion)  36.5 36.0 40.1 43.7 42.3 37.1 49.4  
(% of total imports)  
01 Live animals and products  1.5 1.4 1.4 1.4 1.6 1.8 1.3 
02 Vegetable products  2.4 2.3 2.3 2.2 2.3 2.5 2.0 
03 Fats and oils  0.6 0.6 0.6 0.6 0.6 0.7 0.6 
04 Prepared food, beverages, and tobacco  7.3 7.7 7.7 7.5 7.5 8.9 7.8 
23 Residues, wastes of food industry, animal 
fodder  1.6 1.4 1.6 1.8 1.6 2.2 2.0 
05 Mineral products  10.6 9.0 9.8 12.6 11.4 8.9 8.1 
27 Mineral fuels and oils  10.0 8.5 9.4 12.1 11.1 8.5 7.7 
2709 Petroleum oils and oils obtained from 
bituminous minerals; crude  6.1 4.9 5.5 6.7 6.6 4.2 3.7 
2710 Petroleum oils and oils from bituminous 
minerals, not crude  3.6 3.3 3.7 5.1 4.1 4.0 3.6 
06 Chemicals and products thereof  9.2 9.0 8.8 9.1 8.9 10.0 9.8 
30 Pharmaceutical products  2.4 2.6 2.4 2.3 2.3 2.7 2.9 
07 Plastics and rubber  5.1 5.0 5.0 4.8 4.7 5.1 5.4 
39 Plastics and articles thereof  3.9 3.8 3.8 3.7 3.6 3.9 4.1 
08 Raw hides and skins; leather, furskins and articles 
thereof  0.5 0.5 0.5 0.5 0.6 0.4 0.4 
09 Wood, cork, straw  0.6 0.6 0.6 0.7 0.7 0.7 0.9 
10 Pulp of wood; paper and paperboard  2.4 2.6 2.4 2.2 2.2 2.3 2.0 
48 Paper and paperboard  1.8 1.9 1.8 1.7 1.7 1.8 1.6 
11 Textiles and textile articles  4.8 4.9 4.4 4.3 4.4 4.8 4.5 
12 Footwear, headgear, etc.  0.9 0.9 0.9 0.8 0.9 0.8 0.8 
13 Articles of stone, plaster, cement  1.3 1.4 1.3 1.3 1.4 1.4 1.6 
14 Precious stones and metals  0.6 0.8 0.6 0.6 0.7 1.0 0.9 
15 Base metals and articles thereof  4.8 4.9 4.8 4.7 4.8 4.8 5.6 
73 Articles of iron and steel  1.8 1.9 1.9 1.9 2.0 2.0 2.4 
16 Machinery, electrical equipment  21.6 21.6 22.7 21.9 22.9 23.7 22.9 
84 Machinery and mechanical appliances, parts 
thereof  13.3 13.3 14.4 13.8 14.5 14.4 14.1 
8411 Turbojets, turbo -propellers, and other gas 
turbines  1.4 1.6 2.0 1.9 2.5 2.0 1.6 
8471 Automatic data processing machines and 
units thereof (..)  2.5 2.1 2.3 2.1 2.2 2.6 2.3 
85 Electrical machineries and parts thereof  8.3 8.3 8.3 8.1 8.4 9.3 8.9 
8517 Telephone sets, including telephones for 
cellular networks  (..) 2.7 2.8 2.8 2.8 2.8 2.9 2.6 
17 Transport equipment  18.1 18.7 18.2 17.1 16.2 13.5 16.0 
87 Vehicles other than railway, tramway  13.4 14.9 15.8 14.3 13.3 11.3 14.6 
8703 Motor vehicles for the transport of 
persons (<10)  8.3 9.3 9.6 8.2 7.7 6.6 8.6 
8704 Motor vehicles for the transport of goods  2.8 2.9 3.2 3.0 2.8 2.2 3.0 
18 Precision equipment  3.3 3.4 3.2 3.0 3.4 3.8 3.6 
90 Optical, photographic, measuring, medical 
instruments  (..) 3.1 3.2 3.0 2.8 3.1 3.6 3.3 
19 Arms and ammunition  0.2 0.1 0.2 0.1 0.2 0.1 0.1 
20 Miscellaneous manufactured articles  3.5 3.7 3.5 3.4 3.5 3.6 4.0 
94 Furniture, lighting, signs, prefabricated 
buildings  2.0 2.2 2.1 2.0 2.1 2.1 2.3 
21 Works of art, etc.  0.1 0.1 0.1 0.1 0.1 0.1 0.1 
Other  0.5 0.7 0.8 1.0 1.1 1.0 1.4 
Source:  WTO Secretariat calculations, based on UN Comtrade database.  
 
 
  WT/TPR/S/426 /Rev.1  • New Zealand  
- 126 - 
  Table A1. 4 Merchandise imports by origin, 2015 -21 
  2015  2016  2017  2018  2019  2020  2021  
Total imports (USD billion)  36.5 36.0 40.1 43.7 42.3 37.1 49.4  
(% of total imports)  
Americas  15.0 14.6 13.8 13.3 13.3 13.1 11.5 
United States  11.8 11.3 10.7 10.1 10.0 9.7 8.6 
Other America  3.2 3.3 3.1 3.2 3.3 3.4 2.9 
 Canada  1.2 1.3 1.1 1.1 1.2 1.1 1.0 
 Mexico  0.5 0.5 0.6 0.7 0.7 0.8 0.7 
 Argentina  0.4 0.4 0.4 0.4 0.4 0.5 0.4 
Europe  18.9 19.2 19.6 19.1 20.1 19.2 19.3 
EU-27 15.1 15.1 15.3 15.0 16.0 15.4 15.7 
 Germany  4.7 4.8 5.3 5.1 5.6 4.7 4.9 
 Italy 1.9 2.1 2.1 2.1 2.1 2.3 2.3 
 France  2.6 2.2 1.8 1.8 1.9 1.6 1.9 
 Belgium  0.6 0.7 0.7 0.7 0.6 0.8 1.1 
 Netherlands  1.1 1.1 1.1 1.1 1.0 1.0 0.9 
 Spain  1.0 0.8 0.8 0.8 0.7 1.0 0.7 
 Sweden  0.6 0.6 0.7 0.6 0.6 0.6 0.6 
 Austria  0.4 0.4 0.4 0.5 0.5 0.5 0.5 
 Poland  0.2 0.3 0.3 0.3 0.4 0.5 0.5 
EFTA 0.8 0.9 0.8 0.9 0.9 0.9 0.8 
 Switzerland  0.7 0.7 0.7 0.6 0.7 0.7 0.7 
Other Europe  3.0 3.2 3.5 3.2 3.2 2.9 2.8 
 United Kingdom  2.6 2.8 3.1 2.9 2.8 2.5 2.3 
CISa 1.0 0.3 0.6 0.4 1.0 0.7 0.2 
Africa  0.7 0.6 0.5 0.6 0.6 0.5 0.5 
Middle East  3.7 4.3 4.9 5.9 5.3 3.8 4.3 
United Arab Emirates  0.9 2.1 3.5 4.5 4.2 2.7 3.5 
Saudi Arabia, Kingdom of  1.0 1.4 0.6 0.9 0.7 0.6 0.4 
Asia 60.7 60.9 60.7 60.7 59.6 62.4 64.2 
China  19.6 20.0 19.3 19.8 20.2 22.6 23.8 
Japan  6.5 7.1 7.4 6.9 6.5 5.7 6.5 
Other Asia  34.6 33.9 34.0 34.0 32.9 34.2 34.0 
 Australia  11.9 12.6 12.2 11.5 11.5 12.1 11.3 
 Thailand  4.1 4.5 4.7 4.4 4.2 4.0 4.6 
 Korea, Republic of  3.7 4.3 3.5 4.6 3.8 4.9 4.5 
 Malaysia  3.3 2.6 3.1 3.3 3.2 2.9 2.7 
 Singapore  3.5 2.8 3.4 3.4 2.9 2.7 2.2 
 Indonesia  1.7 1.3 1.5 1.5 1.6 1.8 2.1 
 Viet Nam  1.2 1.3 1.5 1.5 1.6 1.7 1.8 
 Chinese Taipei  1.5 1.4 1.4 1.4 1.4 1.5 1.7 
 India 1.1 1.1 1.1 1.2 1.2 1.3 1.4 
Other  0.0 0.0 0.0 0.0 0.0 0.4 0.0 
Memorandum:         
EU-28 17.7 18.0 18.4 17.8 18.8 17.9 18.1 
APEC 73.9 72.8 72.1 71.5 70.8 72.8 72.6 
a Commonwealth of Independent  States, including certain associate and former member States.  
Source:  WTO Secretariat calculations , based on UN Comtrade database.  
 WT/TPR/S/426 /Rev.1  • New Zealand  
- 127 - 
  Table A2. 1 Selected notifications to the WTO, 1  January 2015 to 31  December  2021  
Agreement  Description  Periodicity  WTO documents (most recent 
if submitted periodically)  
Agreement on Agriculture  
Articles  10 and 18.2 
(ES:1, ES:2)  Export subsidies  Annual  G/AG/N/NZL/127, 03/08/2021  
Article  18.2 (DS:1)  Domestic support  Annual  G/AG/N/NZL/126, 26/02/2021  
Article  18.2 (MA:2)  Tariff and other quota 
commitments  Annual  G/AG/N/NZL/124, 26/02/2021  
Article  18.3 (DS:2)  New or modified domestic 
support measures exempt 
from reduction  Ad hoc  G/AG/N/NZL/122, 22/09/2020  
Articles  5.7 and 18.2 
(MA:5)  Special safeguard 
provisions  Annual  G/AG/N/NZL/125, 26/02/2021  
Article  16.2 Measures concerning the 
possible negative effects 
of the reform programme 
on least developed and 
net food importing 
developing countries  Annual  G/AG/N/NZL/128, 06/10/2021  
Agreement on Implementation of Article  VI of the GATT  1994 (Anti -Dumping Agreement)  
Article  16.4 Reports concerning 
anti-dumping actions  Ad hoc  G/ADP/N/358, 15/07/2021  
G/ADP/N/354, 13/04/2021  
G/ADP/N/348, 13/11/2020  
G/ADP/N/337, 29/01/2020  
G/ADP/N/318, 24/09/2018  
G/ADP/N/398, 20/04/2017  
G/ADP/N/275, 31/08/2015  
G/ADP/N/274, 24/07/2015  
Article  16.4 Semi-annual reports of 
anti-dumping actions 
(taken within the 
preceding si x months)  Semi-annual  G/ADP/N/357/NZL, 11/10/2021  
Article  18.5 Laws and regulations  Once, then 
changes  G/ADP/N/1/NZL/2/Suppl.6/Rev.1,  
23/08/2017  
Agreement on Subsidies and Countervailing Measures  
Article  25.1 Report on subsidies  Biennial  G/SCM/N/372/NZL, 30/06/2021  
Article  25.11  Semi-annual report on 
countervailing duty 
actions  Semi-annual  G/SCM/N/379, 15/06/2021  
Agreement on Government Procurement  
GPA 2012, Article  XIX  Notification of 
modifications to market 
access commitments  Ad hoc  GPA/MOD/NZL/7, 23/04/2018  
GPA/MOD/NZL/6, 26/02/2018  
GPA/MOD/NZL/5, 29/11/2017  
GPA/MOD/NZL/4, 11/05/2017  
GPA/MOD/NZL/3, 27/10/2016  
GPA/MOD/NZL/2, 11/08/2016  
GPA/MOD/NZL/1, 12/08/2015  
Appendix 1  Thresholds   GPA/THR/NZL/2, 16/12/2021  
Understanding on the Interpretation of Article  XVII:4(a) of the GATT  1994 (State trading)  
Article  XVII:4(a)  State trading activities  Biennial  G/STR/N/18/NZL, 02/07/2020  
Participation in regional trade agreements  
GATT 1994, 
Article  XXIV:7(a)  Formation of a free trade 
area Ad hoc  WT/REG451/N/1, 12/04/2021  
WT/REG395/N/1, 20/12/2018  
WT/REG367/N/1, 04/01/2016  
GATS, Article  V:7(a)  Economic integration 
agreements  Ad hoc  S/C/N/1052, 12/04/2021  
S/C/N/920, 20/12/2018  
S/C/N/855, 04/01/2016  WT/TPR/S/426 /Rev.1  • New Zealand  
- 128 - 
  Agreement  Description  Periodicity  WTO documents (most recent 
if submitted periodically)  
Agreement on Rules of Origin  
Article  5 and Annex  II, 
para. 4  Changes to preferential 
rules of origin; new 
preferential rules of origin  Ad hoc  G/RO/N/183, 15/04/2019  
G/RO/N/136, 11/04/2016  
Article  5 and Annex  II, 
para. 4 - First time  Existing preferential rules 
of origin; judicial decisions 
and administrative rulings 
of general application 
relating to preferential 
rules of origin  Once only (within 
90 days of the 
date of entry into 
force of the 
WTO Agreement 
for the Member 
concerned)  G/RO/N/224, 29/04/2021  
G/RO/LDC/N/NZL/1, 05/09/2017  
Agreement on Import Licensing Procedures  
Article  7.3 Replies to questionnaire 
on import licensing 
procedures  Annual  G/LIC/N/3/NZL/8, 17/11/2021  
Agreement on the Application of Sanitary and Phytosanitary Measures  
Article  7 and Annex  B Sanitary/phytosanitary 
regulations  Ad hoc  G/SPS/N/NZL/512 (07/01/2015) 
to G/SPS/N/NZL/677 
(20/12/2021)  
Agreement on Technical Barriers to Trade  
Article  2.9.2 Technical regulations  Ad hoc  G/TBT/N/NZL/71 (15/04/2015) to 
G/TBT/N/NZL/109 (27/12/2021)  
Article  2.10.1  Technical regulations 
(urgent)  Ad hoc  G/TBT/N/NZL/96, 21/01/2020  
G/TBT/N/NZL/87, 16/04/2019  
Articles 2.10 and 5.7  Technical regulations and 
conformity assessment 
procedures (urgent)  Ad hoc  G/TBT/N/NZL/105, 03/05/2021  
G/TBT/N/NZL/101, 15/06/2020  
G/TBT/N/NZL/99, 01/04/2020  
Decision on Notification Procedures for Quantitative Restrictions (G/L/59/Rev.1)  
G/L/59/Rev.1  List of quantitative 
restrictions in force  Biennial; Ad hoc  
(changes)  G/MA/QR/N/NZL/5, 25/03/2021  
G/MA/QR/N/NZL/4, 31/10/2019  
G/MA/QR/N/NZL/3, 18/05/2018  
Agreement on Trade -Related Aspects of Intellectual Property Rights  
Article  63.2 Laws and regulations  Once, then 
changes  IP/N/1/NZL/5 - IP/N/1/NZL/P/5 
(23/02/2015) to IP/N/1/NZL/19 - 
IP/N/1/NZL/C/10 - 
IP/N/1/NZL/P/12 - 
IP/N/1/NZL/T/9 (09/04/2021)  
General Agreement on Trade in Services  
Article  III:3 Change in regulation 
affecting trade in 
scheduled sectors  Ad hoc  S/C/N/931 to S/C/N/945, 
11/03/2019  
Article  III:4  Contact and enquiry 
points  Once, then 
changes  S/ENQ/78/Rev.17, 07/06/2018  
Article  VII:4 Existing or new 
recognition measures and 
their modifications  Once S/C/N/961, 15/10/2019  
Agreement on Trade Facilitation (WT/L/911, replaced by WT/L/931)  
Article  1, para. 4  Procedures for 
importation, exportation, 
and transit  Once, then 
changes  G/TFA/N/NZL/1, 27/06/2017  
Article  10, para. 4.3  Operation of the single 
window  Once, then 
changes  
Article  10, para. 6.2  Use of customs brokers  Once, then 
changes  
Article  12, para.  2.2 Contact point for the 
exchange of information  Once, then 
changes  
Article  22.1  Information on assistance 
and support for capacity -
building disbursed in 
previous and coming year  Annual  G/TFA/N/NZL/2, 11/08/2017  
Article  22.2 Contact points and 
information on the 
process and mechanism 
for requesting assistance  Once, then 
changes  G/TFA/N/NZL/2, 11/08/2017  
Source:  Compiled by WTO Secretariat.   WT/TPR/S/426 /Rev.1  • New Zealand  
- 129 - 
  Table A2. 2 FTAs signed , as at 31  December  2021  
# Name  Date of 
entry into 
force  Covers 
goods 
and 
services  Legal provisions 
under 
WTO  notification  WTO document and 
corresponding 
series  
1 Regional Comprehensive 
Economic Partnership (RCEP)  01/01/22  Yes .. .. 
2 Pacific Agreement on Closer 
Economic Relations  
(PACER Plus)  12/12/20  Yes GATT Art.  XXIV and 
GATS Art. V .. 
3 Comprehensive and Progressive 
Agreement for Trans -Pacific 
Partnership (CPTPP)  30/12/18  Yes GATT Art.  XXIV and 
GATS Art.  V Factual presentation 
distributed,  
WT/REG395  
4 New Zealand – Korea, Rep. of  20/12/15  Yes GATT Art.  XXIV and 
GATS Art. V Factual presentation 
distributed,  
WT/REG367  
5 New Zealand – Chinese  Taipei  01/12/13  Yes GATT Art.  XXIV and 
GATS Art.  V Factual presentation 
distributed,  
WT/REG348  
6 New Zealand – Hong Kong, 
China  01/01/11  Yes GATT Art.  XXIV and 
GATS Art.  V Factual presentation 
distributed,  
WT/REG291  
7 New Zealand – Malaysia  01/08/10  Yes GATT Art.  XXIV and 
GATS Art.  V Factual presentation 
distributed,  
WT/REG306  
8 ASEAN – Australia – 
New Zealand  01/01/10  Yes GATT Art.  XXIV and 
GATS Art.  V Factual presentation 
distributed, 
WT/REG284  
9 New Zealand – China  01/10/08  Yes GATT Art.  XXIV and 
GATS Art.  V Factual presentation 
distributed,  
WT/REG266  
10 Trans -Pacific Strategic Economic 
Partnership  28/05/06  Yes GATT Art.  XXIV and 
GATS Art.  V Factual presentation 
distributed,  
WT/REG229  
11 New Zealand – Thailand  01/07/05  Yes GATT Art.  XXIV and 
GATS Art.  V Factual presentation 
distributed (only 
goods),  
WT/REG207  
12 New Zealand – Singapore  01/01/01  Yes GATT Art.  XXIV and 
GATS Art.  V Factual abstracts 
distributed (goods and 
services), WT/REG127  
13 Australia – New Zealand Closer 
Economic Relations Trade 
Agreement (ANZCERTA)  01/01/83  Yes GATT Art.  XXIV and 
GATS Art.  V Report adopted 
(goods); factual 
abstract distributed 
(services), WT/REG40 
and WT/REG111  
.. Not available.  
Source:  WTO Secretariat.    
  WT/TPR/S/426 /Rev.1  • New Zealand  
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Table A3. 1 MFN applied tariff summary, 2021  
  Number of lines  Average (%)  Range (%)  Coefficient of 
variation (%)  Duty  free (%)  
Total  7,927  2.2 0-10 1.4 61.1 
 HS Chapters 01 -24 1,345  1.5 0-5 1.5 69.0 
 HS Chapters 25 -97 6,582  2.3 0-10 1.3 59.5 
By WTO category       
WTO agricultural products  1,082  1.8 0-5 1.4 64.6 
 Animals and products thereof  137 1.8 0-5 1.4 65.0 
 Dairy products  27 1.3 0-5 1.7 74.1 
 Fruit, vegetables, and plants  254 1.4 0-5 1.6 72.4 
 Coffee and tea  27 2.4 0-5 1.0 51.9 
 Cereals and preparations  141 2.7 0-5 0.9 46.1 
 Oils seeds, fats, oil and their products  96 0.8 0-5 2.2 83.3 
 Sugars and confectionery  20 1.8 0-5 1.4 65.0 
 Beverages, spirits and tobacco  223 2.6 0-5 1.0 47.5 
 Cotton  5 0.0 0-0 0.0 100.0  
 Other agricultural products, n.e.s.  152 1.0 0-5 2.1 80.9 
WTO non -agricultural products  6,845  2.3 0-10 1.3 60.6 
 Fish and fishery products  336 0.6 0-5 2.6 87.5 
 Minerals and metals  1,235  2.1 0-10 1.2 58.6 
 Chemicals and photographic supplies  1,181  1.1 0-10 1.9 78.2 
 Wood, pulp, paper and furniture  514 1.7 0-10 1.5 68.7 
 Textiles  796 2.3 0-10 1.3 59.0 
 Clothing  286 9.6 0-10 0.2 1.7 
 Leather, rubber, footwear and travel goods  308 3.8 0-10 1.0 41.2 
 Non-electric machinery  858 2.4 0-5 1.0 51.5 
 Electric machinery  446 1.9 0-10 1.3 62.3 
 Transport equipment  270 3.9 0-10 1.0 40.7 
 Non-agricultural products, n.e.s.  547 1.6 0-10 1.5 66.5 
 Petroleum  68 0.9 0-5 2.2 82.4 
By ISIC sector       
 ISIC 1 - Agriculture, hunting and fishing  427 0.3 0-5 3.8 93.7 
 ISIC 2 - Mining  96 0.1 0-5 9.7 99.0 
 ISIC 3 - Manufacturing  7,404  2.3 0-10 1.3 58.8 
 Manufacturing excluding food processing  6,442  2.4 0-10 1.3 58.6 
By stage of processing       
 First stage of processing  813 0.3 0-5 4.1 94.2 
 Semi-processed products  2,408  1.4 0-5 1.6 72.9 
 Fully processed products  4,706  3.0 0-10 1.1 49.4 
By HS section       
 01 Live animals and products  409 0.7 0-5 2.5 86.6 
 02 Vegetable products  341 1.0 0-5 2.0 80.1 
 03 Fats and oils  61 1.1 0-5 1.9 78.7 
 04 Prepared food, beverages and tobacco  534 2.6 0-5 1.0 47.4 
 05 Mineral products  213 0.4 0-5 3.6 93.0 
 06 Chemicals and products thereof  1,022  0.6 0-5 2.6 57.3   
  WT/TPR/S/426 /Rev.1  • New Zealand  
- 131 - 
 
  Number of lines  Average (%)  Range (%)  Coefficient of 
variation (%)  Duty  free (%)  
 07 Plastics, rubber, and articles thereof  393 3.1 0-10 0.8 39.4 
 08 Raw hides and skins, leather, and its products  102 2.5 0-10 1.1 52.9 
 09 Wood and articles of wood  250 2.3 0-5 1.1 53.2 
 10 Pulp of wood, paper and paperboard  223 0.0 0-0 0.0 100.0  
 11 Textiles and textile articles  1,053  4.2 0-10 1.0 45.6 
 12 Footwear, headgear, etc.  105 5.7 0-10 0.8 36.2 
 13 Articles of stone, plaster, cement  232 2.5 0-10 1.1 51.7 
 14 Precious stones and metals, pearls  68 1.2 0-5 1.8 76.5 
 15 Base metals and articles thereof  798 2.6 0-10 1.0 49.4 
 16 Machinery, electrical equipment, etc.  1,325  2.1 0-10 1.2 57.0 
 17 Transport equipment  285 3.9 0-10 1.0 41.4 
 18 Precision equipment  240 0.4 0-5 3.5 90.8 
 19 Arms and ammunition  32 2.0 0-5 1.2 56.3 
 20 Miscellaneous manufactured articles  234 3.9 0-10 0.7 26.5 
 21 Works of art, etc.  7 0.0 0-0 0.0 100.0  
Note:  Including ad valorem  equivalents (AVEs), as available; excluding tariff lines applying to parts and components, for which the tariff varies depend ing on the machinery, 
appliance, or equipment they have been designed to.  
Source:  WTO Secretariat calculations, based on data prov ided by the authorities.     
  WT/TPR/S/426 /Rev.1  • New Zealand  
- 132 - 
 
Table A3. 2 Intellectual property protection, 2022  
Main 
legislation  Coverage  Duration  Selected exclusions and limitations  
Patents     
Patents 
Act 2013 Any invention that compared with the 
prior art base is novel, involves an 
inventive step, and has a specific, 
credible, and substantial utility  20 years from patent date  An invention is not a patentable invention if its commercial exploitation is 
contrary to public order or morality.  
The following are not patentable inventions: scientific theories or 
mathematical formulae; art works and literature; business schemes or 
ways of presenting information; computer programs as such; methods of 
human medical treatment; diagnostic methods practised on humans; 
human beings and processes for their generation; processes for cloning 
humans; using human embryos for industrial or commercial purposes; 
plant varieties as provided in the Plant Variety Rights Act 1987.  
Undisclosed information  
Contract and 
Commercial 
Law Act 2017  
 
Crimes 
Act 1961 Any information the parties agree to 
under a contract agree to keep 
confidential  
 
Trade secrets, i.e. any information that 
is, or has the potential to be, used 
industrially or commercially; and is not 
generally avai lable in industrial or 
commercial use; and has economic value 
or potential economic value to the 
possessor of the information; and is the 
subject of all reasonable efforts to 
preserve its secrecy  Duration of the contract  
 
Indefinitely where all reasonable 
efforts are undertaken to preserve 
its secrecy  Disclosures required under any enactment are excluded. Protection for 
when information is released in the wider public interest, such as 
"whistleblowing" that uncovers mismanagement, fraud, corruption, 
illegal ity or other wrongdoing.  
 
Medicines 
Act 1981 
 
 
Agricultural 
Chemicals and 
Veterinary 
Medicines Act 
1997  
Protection for data submitted in support 
of an application for approval of a new 
pharmaceutical  
 
Protection for data submitted in support 
of an application for approval of an 
agricultural chemical   
5 years  
 
10 years for innovative agricultural 
chemicals and 5 years for non -
innovative agricultural chemicals   
Data derived from information that is alrea dy in the public domain are not 
protected.  
 
Data derived from information that is already in the public domain are not 
protected.  
Plant variety rights  
Plant Variety 
Rights 
Act 1987 Any plant varieties that are new, distinct, 
stable, and homogeneous  20 years from the date of grant of 
plant variety right (23  years – 
woody plants and their woodstock)  Non-commercial purposes, human consumption or other non -reproductive 
purposes, and plant -breeding purposes    
  WT/TPR/S/426 /Rev.1  • New Zealand  
- 133 - 
 
Main 
legislation  Coverage  Duration  Selected exclusions and limitations  
Industrial designs  
Designs 
Act 1953 Any new or original design that has not 
been published in New  Zealand before 
the filing date; consists of features of 
shape, configuration, pattern or 
ornament applied to an article by any 
industrial process or means, being 
features that appeal to  and are judged 
solely by the eye  5 years from date of registration, 
extendable for two  further periods 
of 5 years  Non-registrable designs: methods or principles of construction; designs 
that are purely functional; articles which are primarily literary or artistic in 
character; designs the use of which would be contrary to law or morality  
Trademarks  
Trade Marks 
Act 2002  Any sign capable of being represented 
graphically, and distinguishing the goods 
or services of one person from those of 
another person  10 years from date of registration, 
renewable in 10 -year intervals  Non-distinctive trademarks are not registrable: signs that are not 
trademarks; trademarks that have no distinctive character; trademarks 
that consist only of signs or indicat ions that may serve, in trade, to 
designate the kind, quality, quantity, intended purpose, value, 
geographical origin, time of production of goods or of rendering of services, 
or other characteristics of goods or services; trademarks that consist only 
of signs or indications that have become customary in the current language 
or in the bona fide and established practices of trade; trademarks the use 
of which would be contrary to law or morality  
Geographical indications  
Geographical 
Indications 
(Wine and 
Spirits) 
Registration 
Act 2006  
 
Fair Trading 
Act 1986  
 
Trade Marks 
Act 2002  Indications that identify a product as 
originating from a particular territory, 
region or locality where a given quality, 
reputation or other characteristic is 
essentially attribut able to its geographical 
origin  Geographical Indications (Wine and 
Spirits) Registration Act  
5 years, thereafter renewal for 
further periods of 10 years 
indefinitely  
 
Fair Trading Act  
Enduring so long as it continues to 
be used.  
 
Trade Marks Act 2002  
10 years, thereafter renewal for 
further periods of 10 years 
indefinitely  Common descriptive names of products and names of plant varieties and 
animal names excluded from protection/registration; use of person's name 
in business not an infringement    
  WT/TPR/S/426 /Rev.1  • New Zealand  
- 134 - 
 
Main 
legislation  Coverage  Duration  Selected exclusions and limitations  
Copyrights and related rights  
Copyright 
Act 1994 Original literary, dramatic, musical, or 
artistic works; sound recordings; films; 
communication works; typographical 
arrangements of published editions  Literary, dramatic, musical, or 
artistic work: author's life and 
50 years from end of calendar year 
in which the author dies.  
Computer -generated works: 
50 years from end of calendar year 
in which work is made.  
Sound recording or film: 50  years 
from end of calendar year in which 
work is made or made ava ilable to 
public by authorized act, whichever 
is later.  
Communication work: 50  years 
from end of calendar year in which 
is first communicated to public.  
Typographical arrangement of a 
published edition – 25 years from 
end of calendar year in which 
edition is first published.  
Crown copyright – 100 years from 
end of calendar year in which work 
is made.  
Artistic works industrially applied: 
16 years from when work is applied.  
Artistic craftsmanship industrially 
applied: 25  years from when work 
is applied.  
Performance: 50 years from end of 
calendar year in which performance 
takes place.  
Moral rights are not assignable.  Copyright in a work is not infringed by, inter alia: incidental copying of the 
work in artistic work, sound recording, film or communication work;  fair 
dealing with a work for the purposes of criticism, review, and news 
reporting; fair dealing with a work for the purposes of research or private 
study; transient reproduction of work; copying for educational purposes; 
copying by librarians of parts of  published works and articles in periodicals; 
communication of an archived work in accordance with Section 29C of the 
Television New  Zealand Act 2003; anything done for the purposes of 
parliamentary or judicial proceedings or reporting them.  
Layout design s (topographies) of integrated circuits  
Layout Designs 
Act 1994  Any original three -dimensional 
disposition, however expressed, of the 
elements, at least one of which is an 
active element, and of some or all of the 
interconnections, of an integrated circuit; 
and includes such a three -dimensional 
disposition prepared for an integrated 
circuit intended for manufacture  10 years after the calendar year in 
which first commercially exploited if 
it happened within 5  calendar years 
of being made  
 
Other cases – 15 years after 
calendar year in which was made  Not considered infringements, inter alia : innocent commercial exploitation; 
copying for private use, copying for research or teaching purposes, copying 
for evaluation or analysis  
Source:  Information provided by the authorities.  
    
  WT/TPR/S/426 /Rev.1  • New Zealand  
- 135 - 
 
Table A3. 3 Applications for and registrations of trademarks, patents, and industrial designs, 2014 -20 
    Applications   Registrations   
    2014  2015  2016  2017  2018  2019  2020  2014  2015  2016  2017  2018  2019  2020  
Trademarksa Resident  15,650  15,769  16,577  17,099  17,806  18,081  22,625  12,441  13,359  12,840  13,819  14,995  14,851  16,282  
Non-
resident  23,955  26,382  29,120  30,111  32,473  32,634  33,024  25,735  29,155  26,564  32,336  33,262  34,513  34,056  
Total 39,605  42,151  45,697  47,210  50,279  50,715  55,649  38,176  42,514  39,404  46,155  48,257  49,364  50,338  
% Non -
resident  60% 63% 64% 64% 65% 64% 59% 67% 69% 67% 70% 69% 70% 68% 
Abroad  20,469  22,500  26,742  24,171  30,100  29,784  28,191  21,433  23,503  22,243  23,990  26,939  30,691  27,594  
Patents  Resident  1,636  1,184  1,075  1,014  1,017  324 348 389 344 304 177 82 94 71 
Non-
resident  6,092  5,317  5,311  5,146  5,221  5,690  5,417  4,288  3,915  3,606  2,253  1,957  1,548  1,770  
Total 7,728  6,501  6,386  6,160  6,238  6,014  5,765  4,677  4,259  3,910  2,430  2,039  1,642  1,841  
% Non -
resident  79% 82% 83% 84% 84% 95% 94% 92% 92% 92% 93% 96% 94% 96% 
Abroad  1,793  2,103  1,988  2,169  2,022  1,849  2,029  786 799 966 989 1,154  1,066  1,239  
Industrial 
Designsb Resident  400 345 358 343 463 321 352 286 293 249 299 311 341 277 
Non-
resident  885 984 1,000  948 1,118  960 1,015  777 1,024  932 968 1,015  991 1,076  
Total 1,285  1,329  1,358  1,291  1,581  1,281  1,367  1,063  1,317  1,181  1,267  1,326  1,332  1,353  
% Non -
resident  69% 74% 74% 73% 71% 75% 74% 73% 78% 79% 76% 77% 74% 80% 
Abroad  3,634  2,859  4,279  4,368  6,418  4,019  5,910  2,163  2,794  3,443  4,341  5,670  4,254  6,601  
a Class count.  
b Design count.  
Note:  A resident filing refers to an application filed in New  Zealand by a New  Zealand resident; whereas a non -resident filing refers to one filed by a foreign applicant. "Abroad" 
refers to an application filed b y a New  Zealand resident at a foreign office.  
Source:  WIPO  Statistics Database.  
 WT/TPR/S/426 /Rev.1  • New Zealand  
- 136 - 
  Table A3. 4 Standards and conformance infrastructure, 2022  
Activity  International 
organization  Regional 
organization  National 
authority  Relevant 
legislation  
Standards  International 
Organization for 
Standardi zation 
(ISO)  
 
International 
Electrotechnical 
Commission (IEC)  Pacific Area 
Standards 
Congress (PASC)  Standards 
New Zealand 
(Standards NZ)  Standards and 
Accreditation Act, 
2015 
Physical standards 
of measurement  International Bureau 
of Weights and 
Measures (BIPM)  Asia-Pacific 
Metrology 
Programme (APMP)  Measurement 
Standards 
Laboratory (MSL)  Measurement 
Standards Act, 
1992 
Legal 
measurement  International 
Organization of 
Legal Metrology 
(OIML)  Asia Pacific Legal 
Metrology Forum 
(APLMF)  Trading 
Standards  
 
Ministry of 
Business, 
Innovation and 
Employment  Weight and 
Measures Act, 1987  
Accreditation of 
laboratories, 
inspection bodies, 
and radiology 
services  International 
Laboratory 
Accreditation 
Co-operation (ILAC)  Asia-Pacific 
Accreditation 
Cooperation 
(APAC)  International 
Accreditation 
New Zealand 
(IANZ)  Standards and 
Accreditation Act, 
2015 
 
Crown Entities Act, 
2004 
Accreditation of 
certification and 
inspection bodies  International 
Accreditation Forum 
(IAF) 
 
ILAC APAC  Joint 
Accreditation 
System for 
Australia and 
New Zealand 
(JAS-ANZ) Agreement between 
New Zealand and 
Australia 
concerning the 
Establishment of 
the Gover ning 
Board, Technical 
Advisory Council 
and Accreditation 
Review Board of the 
Joint Accreditation 
System of Australia 
and New  Zealand, 
1998 
Source:  Information provided by the authorities.  
  WT/TPR/S/426 /Rev.1  • New Zealand  
- 137 - 
  Table A4. 1 New Zealand air transport agreements, 2021  
Partner  Note  Traffic rights  Code share  Ownership  
Argentina   
1-6 Third country  SO and EC  
Australia   
1-6 + 7f cargo and 8  Third country  PI, PPB and EC  
Austria   
1-5 Third country  PI, PPB and EC  
Belgium   
1-4 Third country  PI, PPB and EC  
Brazil   
1-6 Third country  PI, PPB and EC  
Brunei  Darussalam  (See MALIAT 
and MALIAT 
Protocol)     
Cambodia   
1-5 Third country  PI, PPB and ERC  
Canada   
1-6 + 7f cargo  Third country  SO and EC  
Chile  (See MALIAT 
and MALIAT 
Protocol)     
China   
1-6 Third country  PPB and ERC  
Colombia   
1-5 for pax and 1 -4 for 
cargo + 5 for cargo on 14 
times per week at 
two points to be 
nominated  Third country  PPB and ERC  
Cook Islands  (See 
MALIAT)     
Denmark   
1-5 Third country  PI, PPB and EC  
Ecuador   
1-6  Third country  PI, PPB and ERC  
Fiji  
1-6 Third country  SO and EC  
Finland   
1-8 Third country  PPB and ERC  
France   
1-4 + limited 5  Restricted third 
country code -sharing 
for French carriers  SO and EC  
French Polynesia   
1-6 Third country  SO and EC  
New Caledonia   
1-4 Code-sharing, but not 
third country  SO and EC  
Germany   
1-5, 7f cargo Third country  PI and PPB  
Greece   
1-5 Third country  PI, PPB and ERC for NZ / 
established in Greece in 
accordance with the 
Agreement on the 
European Economic Area 
and has a valid Operating 
License in accordance 
with national law adopted 
in accordance with the 
EEA Agreement; and 
ERC; and SO  and EC by 
states a nd/or nationals of 
the European  Economic 
Area  
Guyana   
1-5 for pax and 1 -7 for 
cargo  Third country  PI, PPB and ERC  
Hong Kong, China   
1-5 Third country  PI and PPB  
India   
1-5 Third country, except 
to New  Delhi. Code -
share points for 
New Zealand are New 
Delhi, Mumbai, 
Bangalore, Chennai, 
Kolkata, Hyderabad, 
and Kochi. Code -share 
points for India are 
any point in 
New Zealand + 
Wellington and 
Christchurch 
domestically.  SO and EC  
Indonesia   
1-5 Third country  PI, PPB and ERC for 
New Zealand / SO and EC 
for Indonesia  WT/TPR/S/426 /Rev.1  • New Zealand  
- 138 - 
  Partner  Note  Traffic rights  Code share  Ownership  
Ireland   
1-7 
Rights between the 
Americas and Ireland can 
only be exercised to and 
from other points in 
Ireland while the same 
designated airline is 
operating direct 
corresponding 
fifth freedom transatlantic 
services to and from 
Shannon  Third country  
Code share 
arrangements via 
London for traffic 
between the Americas 
and Ireland will only 
be permitted while the 
same designated 
airline is operating 
direct corresponding 
fifth freedom 
transatlantic services 
to and from Shannon  PI, PP B, majority 
ownership and EC  
Israel   
1-5 Third country  PI, PPB, and ERC  
Italy   
1-4 Third country  PI, PPB, and ERC for NZ / 
established in Italy in 
accordance with the 
Agreement on the 
European Economic Area 
and has a valid Operating 
License in accordance 
with national law adopted 
in accordance with the 
EEA Agreement; and 
ERC; and SO and EC by 
states a nd/or nationals of 
the European Economic 
Area  
Jamaica   
1-6 + 7f cargo  Third country  PI, PPB and ERC + a 
CARICOM carrier 
provision for Jamaica  
Japan   
1-5 Third country  SO and EC  
Kiribati   
1-7  Third country  PI, PPB and ERC  
Korea, Republic of   
1-5 Third country  SO and EC  
Kuwait, State of   
1-6, 7 cargo  Third country  PI, PPB and ERC  
Lao People's 
Democratic Republic   
1-5 Third country  PI, PPB and ERC  
Luxembourg   
1-6, 7 cargo  Third country  PI, PPB, and ERC  
Macao, China   
1-6 No code -share 
provisions  PI and PPB  
Malaysia   
1-7 Third country  PI, PPB and EC  
Mauritius   
1-4 for pax and 1 -5 for 
cargo  Third country  PI, PPB, and ERC for 
New Zealand and PI, SO 
and EC and ERC for 
Mauritius  
Mexico   
1-4 Third country  PI, PPB and EC  
Mongolia  (See MALIAT 
cargo -only)  
Third country   
Myanmar   
1-5 Third country  PI, PPB and ERC  
Nauru   
1-4 No code -share 
provisions  SO and EC  
Niue   
1-5 No code -sharing 
provisions  SO and EC  
Norway   
1-5 Third country  PI, PPB and EC  
Papua New Guinea   
1-4 + limited 5 for 
New Zealand  No third country code -
sharing  PI, PPB and ERC  
Peru   
1-6 +7f cargo  Third country  PI, PPB and EC  
Philippines   
1-5 Third country code -
sharing permitted for 
3rd and 4th freedom 
services via any one 
intermediate point to 
be nominated; own 
stopover rights 
permitted; capacity 
not to count against 
marketing carrier  PI, PPB and EC  WT/TPR/S/426 /Rev.1  • New Zealand  
- 139 - 
  Partner  Note  Traffic rights  Code share  Ownership  
Poland   
1-5 + 7f cargo  Third country  PI, PPB and ERC for 
New Zealand / 
established in Poland in  
accordance with the 
Agreement on the 
European Economic Area 
and has a valid Operating 
License in accordance 
with national law adopted 
in accordance with the 
EEA Agreement; and 
ERC; and SO and EC by 
states and/or nationals of 
the European Economic 
Area  
Qatar  
1-8 Third country  SO and EC  
Russian  Federation   
1-6 Third country  SO and EC  
Samoa   
1-7 Third country  PI, PPB and EC  
Saudi Arabia, 
Kingdom of   
1-6 +7f cargo  Third country  PI, PPB and ERC  
Seychelles   
1-5 + 7f cargo  Third country  PI, PPB and ERC  
Singapore  (See MALIAT 
and MALIAT 
Protocol)     
Solomon Islands   
1-5 No code -sharing 
provisions  SO and EC  
South  Africa   
1-5 Third country  PI, PPB and EC vested in 
Contracting Party (not 
nationals)  
Spain   
1-4 
Fifths to be determined  Third country  PI, PPB and EC  
Sri Lanka   
1-5 Third country  PPB and ERC  
Sweden   
1-5 Third country  PI, PPB and EC  
Switzerland   
1-6 Third country  PI, PPB and ERC  
Chinese  Taipei   
1-6 Third country  PPB and ERC  
Thailand   
1-6 + 7f cargo  Third country  SO and EC  
Tonga  (See 
MALIAT)     
Turkey   
1-4 + 7f cargo  
Fifth to be determined  Third country  SO and EC  
PI and PPB  
United Arab 
Emirates   
1-7, cabotage code share 
with designated airlines of 
other party  Third country  PI, PPB and ERC  
United Kingdom   
1-9 Third country  NZ: PI, PPB and ERC  
UK: 
PPB and ERC in EU 
member States 
Direct or Majority 
ownership and Effective 
Control by EU member 
States, Iceland, 
Liechtenstein, Norway, or 
Switzerland and/or 
nationals of those States  
United  States  (See 
MALIAT)     
Uruguay   
1-6 + 7f cargo  Third country  PI, PPB and ERC  
Vanuatu   
1-5 Third country  SO and EC  
Viet Nam   
1-4 + limited 7f cargo  Third country  PPB and ERC  
Zambia   
1-6 Third country  PPC and ERC  
MALIAT   
1-6 + 7f cargo   
PI, PPB and EC  
MALIAT Protocol   
7 pax + 8   
PI, PPB and EC  
MALIAT cargo -only  
1-7f  
PI, PPB and EC  
Note:  SO = Substantial Ownership, EC = Effective Control, PI = Place of Incorporation, PPB = Principal 
Place of Business, ERC = Effective Regulatory Control, X PW = times per week.  
Source:  Information provided by the authorities.  
__________