G/SCM/N/401/NZL  
 
19 June 2023 
(23-4159) Page: 1/11 
Committee on Subsidies and Countervailing Measures  Original: English  
 
SUBSIDIES  
NEW AND FULL NOTIFICATION PURSUANT TO ARTICLE XVI:1 OF  
THE GATT 1994 AND ARTICLE 25 OF THE AGREEMENT ON  
SUBSIDIES AND COUNTERVAILING MEASURES  
NEW ZEALAND  
The following communication , dated and received on 16 June 2023, is being circulated at the request 
of the delegation of New Zealand . 
 
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The following notification covers the 2020/21 and 2021/22 financial years (FY) and has been 
prepared on the basis of the data supplied by the delivery agencies.  
The information provided in this report is for transparency purposes in order to clarify the operation 
of programmes or measures.  
In accordance with Article 25.7 of the Agreement on Subsidies and Countervailing Measures (ASCM), 
notification does not in any way prejudge the legal status, nature or effects of government assistance 
programmes under the ASCM and GATT 1994, including as to whether or not the programmes 
notified are specific within the meaning of the ASCM.  
All dollar amounts referred to in this notifi cation are New Zealand dollars . 
 
TABLE OF CONTENTS  
 
1   PRIMARY GROWTH PARTNERSHIP  ................................ ................................ ..............  2 
2   SUSTAINABLE FOOD AND FIBRE FUTURE  ................................ ................................ .... 4 
3   PROVINCIAL GROWTH FUND  ................................ ................................ ......................  5 
4   INTERNATIONAL GROWTH FUND  ................................ ................................ ................  7 
5   GOVERNMENT INVESTMENT IN DECARBONISING INDUSTRY  ................................ ..... 9 
6   REGION AL STRATEGIC PARTNERSHIP FUND  ................................ .............................  11 
 
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  1  PRIMARY GROWTH PARTNERSHIP  
1. Title of the subsidy programme  
Primary Growth Partnership (PGP) . 
2. Period covered by the notification  
FY 2020/21 and FY 2021/22 . 
3. Policy objective  and/or purpose of the subsidy  
The PGP is a government -industry partnership initiative (industry contributions must be at least 60% 
of the total programme funding) that invests in significant programm es of research and innovation 
to boost productivity, economic growth and the sustainability of New Zealand's primary, forestry 
and food sectors. The focus of the initiative is on boosting productivity through on -going investment 
in innovation.  
The PGP has also been notified under Article 18:2 of the Agreement on Agriculture 
(G/AG/N/NZL/132  and G/AG/N/NZL/138).  
4. Background and authority for the subsidy  
New Zealand Cabinet approved the PGP on 18 May 2009. The programme is administered by the 
Ministry for Prima ry Industries.  
5. Form of the subsidy  
Grant for a maximum of 40% of eligible costs.  
Programmes approved before December 2015 were eligible for up to 50% Crown funding.  
6. To whom and how the subsidy is  provided  
Companies or consortia from the primary, forestry and food sector industries are eligible to 
participate in the PGP. More specifically, industries included are:  
• pastoral (including dairy, meat and wool) and arable production;  
• horticulture;  
• seafood (including aquaculture);  
• forestry and wood produc ts; and  
• food processing (including nutraceuticals and bio -actives).  
Each programme is a joint investment between the government and industry.  
Additional information is available here: https://www.mpi.govt.nz/funding -rural-support/primary -
growth -partnerships -pgps/  
7. Annual Budget Information  
FY 2020/21: $0  
FY 2021/22: $0  
Payments for the ongoing PGP contracts are now captured under the notified budget for the 
Sustai nable Food and Fibre Futures fund.  
8. Duration  of the subsidy  
There was no fixed duration for this programme at inception. The PGP funding programme has now 
been closed to new applications. The last year for new applications was 2017/18. The final year of 
contract payments will be 2026.  G/SCM/N/401/NZL  
 
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  The PGP has been replaced by the Sustainable Food & Fibre Futures programme. The first year for 
applications under the Sustainable Food & Fibre Futures programme was 2019.  
9. Statistical data permitting an assessment of the tra de effects of the subsidy  
N/A. The PGP is focussed on industry innovation and capability building. It is not focussed on trade 
development and does not provide a production or export subsidy.  
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  2  SUSTAINABLE FOOD AND FIBRE FUTURE  
1. Title of the subsidy  program me 
Sustainable Food and Fibre Future (SFFF) . 
2. Period covered by the notification  
FY 2020/21 and FY 2021/22 . 
3. Policy objective  and/or purpose of the subsidy  
The SFFF  funds transformative programmes through partnerships and grants to develop capability 
and deliver economic, social, cultural and environmental benefits.  
The extent of sustainable benefits to New Zealand and/or New Zealanders relative to the commercial 
returns to the non -government investor is the key criteria in determining the level of government 
funding.  
In order to be approved, the proposal must demonstrate that it is additional to business as usual, 
for the organisation, industry, sector or community. An independent Investment Advisory Panel 
provides the Ministry for Primary Industries with independent expert advice on funding proposals to 
ensure the criteria for government funding is met.  
The SFFF has also been notified under Article 18:2 and 18:3 of t he Agreement on Agriculture 
(G/AG/N/NZL/118, G/AG/N/NZL/132 and G/AG/N/NZL/138). The SFFF is focused on industry 
innovation and capability building. It is not focused on trade development and does not provide a 
production or export subsidy.  
4. Background and authority for the subsidy  
The SFFF was introduced in October 2018 as a merger of two pre -existing funds: the Primary Growth 
Partnership and the Sustainable Farming Fund. The SFFF is administered by the Ministry for Primary 
Industries (MPI).  
5. Form of the sub sidy 
The SFFF is a co -investment fund between government and non -government investors.  
6. To whom and how the subsidy  is provided  
Companies or consortia from the primary, forestry, fishery and food sector industries are eligible to 
participate in the SFFF.  
7. Annual Budget Information  
The overall SFFF budget is for a five -year period. The figures below therefore are for funds disbursed 
during the 2020/21 and 2021/22 financial years.  
Actual funds disbursed in FY 2020/21: $37.76 million.  
Actual funds disbursed in F Y 2021/22: $47.03 million.  
8. Duration  of the subsidy  
There was no fixed duration for this programme at inception.  
9. Statistical data permitting an assessment of the trade effects of the subsidy  
N/A. 
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  3  PROVINCIAL GROWTH FUND  
1. Title of the subsidy  programme  
Provincial Growth Fund (PGF) . 
2. Period covered by the notification  
FY 2020/21 and FY 2021/22 . 
3. Policy objective  and/or purpose of the subsidy  
The specific objectives of the PGF are:  
• increased jobs and sustainable economic development;  
• increased social inclusion and participation;  
• Māori development;  
• environmental sustainability and help in addressing climate change; and  
• increased resilience (infrastructure and economic) . 
In 2020 the PGF was refocused to support New Zealand 's economic recovery from COVID -19 through 
an increased focus on immediate job creation and income growth, construction ready activity and 
visibility to the community to provide confidence that renewed economic activity was underway.  
4. Background and authority for the subsidy  
New Zealand C abinet approved the PGF in December 2017. The programme is administered by the 
Ministry for Business, Innovation and Employment.  
5. Form of the subsidy  
Can take the form of loans, grants or equity. Projects that are deemed commercial or 
quasi -commercial will generally require a 50% contribution from the applicant, or a related third 
party. Grants provided to commercial projects will generally require a 60% contribution from the 
applicant or related third party (in line with other government programmes). Co -contribution can be 
in-kind rather than financial where appropriate for the project. Exceptions to contribution 
requirements may be considered where the benefits to the region or to New Zealand overall are high 
(e.g. for projects supporting those not in emplo yment, education or training into employment).  
6. To whom and how the subsidy is  provided  
Loans, grants or equity are able to be provided to:  
• Local Authorities (Regional Council, District Council, Unitary Authorities);  
• Government Departments;  
• Charitable Trust s; 
• Companies;  
• Incorporated Societies;  
• Māori Trusts; and  
• Partnerships.  
7. Annual Budget Information  
The overall PGF budget is for a three -year period. The figures below therefore are for funds disbursed 
during the 2020/21 and 2021/22 financial years.  
Actual funds disbursed in FY 2020/21: $950 million.  
Actual funds disbursed in FY 2021/22: $428.2 million.  G/SCM/N/401/NZL  
 
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  8. Duration  of the subsidy  
Funding has been allocated until 2027/28.  
9. Statistical data permitting an assessment of the trade effects of the subsidy  
N/A. T he PGF is a non -specific support programme for regions of Aotearoa New Zealand. The PGF 
does not have trade or export objectives.  
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  4  INTERNATIONAL GROWTH FUND  
1. Title of the subsidy programme  
International Growth Fund (IGF) . 
2. Period covered by the notification  
FY 2020/2021 and FY  2021/2022 . 
3. Policy objective  and/or purpose of the subsidy  
The IGF  is a 50:50 co -investment programme supporting projects that deliver a positive economic 
benefit to New Zealand 's economy. It is designed to assist NZTE customers to accelerate their growth 
by building knowledge of new markets; acquiring business and manag ement skills; managing the 
commercialisation of research and development, and raising growth capital.  
4. Background and authority for the subsidy  
The New Zealand Government approved the establishment of the IGF in 2009 as an adaption of 
the 2003 'Growth Servi ces Fund '. New Zealand Trade and Enterprise (NZTE) administers the IGF.  
The IGF was notified to the WTO in 2011 (G/SCM/N/220/NZL).  Since that notification, the IGF has 
been under review and adapted frequently, most recently in response to the COVID -19 pand emic. 
Adaptations have included the criteria for which NZTE customers and activities were eligible for 
funding, the investment ratio between NZTE and the recipient, as well as the amount of funding 
available.  
The IGF is currently under review again in ligh t of the Internationalisation Support Review and the 
anticipated reduction in appropriation for the IGF in 2025 (see below).  
5. Form of the subsidy  
The IGF is a co -investment between the New Zealand government and an eligible NZTE customer. 
NZTE administers t he IGF, supporting eligible customers by co -investing a maximum of $600,000 
per customer over a 2 -3 year period in growth projects.  
6. To whom and how the subsidy is  provided  
The IGF is a contestable fund with no specific sector criteria or settings. The IGF is accessible to 
eligible NZTE 'Focus ' customers who may make applications, where co -investing in a project will 
deliver a positive impact to the New Zealand economy (for example additional domestic jobs 
created).  
In each IGF project, the customer is requi red to co -invest with NZTE on a 50:50 basis. The customer 
is reimbursed for eligible costs incurred during the project. For a claim to be eligible for co -funding, 
the expense must directly relate to the scope of the project and incurred in the delivery of the 
project, it must be legal, and must be an appropriate use of taxpayer 's money. There are costs the 
funding won 't cover, such as 'business as usual ' costs or capital expenditure.  
7. Annual Budget Information  
Actual funds disbursed in FY 2020/21: $63.9 million . 
Actual funds disbursed in FY 2021/22: $68.5 million . 
The IGF budget increased from NZD $30 million to NZD $60 million in 2020/21 to provide additional 
help to New Zealand businesses recovering from the impacts of the COVID -19 pandemic. This 
fundin g was made available through the COVID -19 Recovery and Response Fund (CRRF). The 
increase in funding enabled NZTE to support more projects and increase the number of eligible 
customers able to make applications to access the Fund, from 700 customers to 140 0. The additional G/SCM/N/401/NZL  
 
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  funding also provided an opportunity to introduce tiered funding options to align with customer 
needs. It is anticipated that the appropriation will return to NZD $30 million in 2025.  
8. Duration  of the subsidy  
There is no fixed duration for  the programme.  
9. Statistical data permitting an assessment of the trade effects of the subsidy  
The IGF is a non -specific, sector agnostic, growth and capability building programme.  It does not 
have trade specific objectives or milestone -based payments.  
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  5  GOVERNMENT INVESTMENT IN DECARBONISING INDUSTRY  
1. Title of the subsidy  programme  
Government Investment in Decarbonising Industry (GIDI) . 
2. Period covered by the notification  
FY 2020/21 and FY 2021/22 . 
3. Policy objective  and/or purpose of the subsidy  
The GIDI  is a partnership between Government and business to accelerate the decarbonisation of 
industry (industry contributions must be 50% of the total project funding) to support the 
Government 's emissions reduction goals, optimise energy use by New Zealand 's businesses, ease 
the transition to a greener economy and help improve productivity.  
The funding aims to help New Zealand secure its long -term energy future, meet its first emissions 
budget (2022 -2025) and achieve longer -term climate targets through decarboni sation projects.   
The GIDI is focussed on decarbonising industry in New Zealand. It is not focussed on trade 
development and does not provide a production or export subsidy.  
4. Background and authority for the subsidy  
New Zealand Cabinet approved the GIDI on 6 July 2020. The programme is administered by the 
Energy Efficiency and Conservation Authority (EECA). The GIDI fund was expanded by an additional 
$650 million over four years as part of Budget 2022.  
5. Form of the subsidy  
Grant for a maximum of 50% of eligib le costs.  
This is implemented by contract where the responsible agency (the EECA) enters into a funding 
agreement to deliver the decarbonisation project with the agreed GIDI co -funding. Applications for 
funding must be for the incremental capitalised proje ct costs, not operating costs.  
6. To whom and how the subsidy  is provided  
GIDI funding has been available to medium to large industrial businesses that use process heat.  
Work is also underway to expand GIDI to include assisting small to medium -sized businesse s buy 
and install low emission, high efficiency electrical equipment; and assistance for commercial 
buildings to replace fossil fuel space and water heating with a lower -emissions alternative.  
Each programme is a joint investment between the government and industry.  
Additional information is available here: https://www.eeca.govt.nz/co -funding/industry -
decarbonisation/approved -gidi-projects/  
7. Annual Budget Information  
GIDI was launched in November 2020 with a $70 million fund (2020/21 -2021/22).  This was 
expanded by an additional $650 million over four years as part of Budget 2022.The figures below 
therefore represent funds disbursed.  
Actual funds disbursed in FY 2020/21: $0  
Actual funds disbursed in FY 2021/22: $55.7 million  G/SCM/N/401/NZL  
 
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  8. Duration  of the subsidy  
There was no fixed duration for this programme at inception.  
9. Statistical data permitting an assessment of the trade effects of the subsidy  
N/A. The GIDI  is focussed on decarbonising industry in New Zealand. It does not have trade or 
export objectives.  
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  6  REGIONAL STRATEGIC PARTNERSHIP FUND  
1. Title of the subsidy programme  
Regional Strategic Partnership Fund . 
2. Period covered by the notification  
FY 2021/22 . 
3. Policy objective  and/or purpose of the subsidy  
The Regional Strategic Partnership Fund (RSPF) is a $200 million investment fund supporting regions 
to achieve their economic potential. The overarching purpose of this fund is to foster productive, 
resilient, inclusive, sustainable and Māori -enabling regional economies.  
4. Background and authority for the subsidy  
New Zealand Cabinet approved the RSPF in January 2021. The programme is administered by the 
Ministry for Business, Innovation and Employment.  
5. Form of the subsidy  
Can take the form of loans, grants or equity. Other funding must be available for the project in 
addition to RSPF funding. For commercial projects, the requirement will generally be for at least 
50% additional funding. For non -commercial  projects and Māori -enabling projects, a contribution of 
20% is a guideline. Property and in -kind contributions are not considered co -funding.  
6. To whom and how the subsidy  is provided  
Loans, grants or equity are able to be provided to:  
• Local Authorities (Regional Council, District Council, Unitary Authorities);  
• Government Departments;  
• Charitable Trusts;  
• Companies;  
• Incorporated Societies;  
• Māori Trusts; and  
• Partnerships.  
7. Annual Budget Information  
The overall RSPF budget is for a three -year perio d. To date, $79 million has been approved and 
$14 million has been paid out.  A breakdown for the 2021/22 financial year is not yet available.  
8. Duration  of the subsidy  
The fund is to be delivered over a period of three years.  
9. Statistical data permitting an a ssessment of the trade effects of the subsidy  
N/A. The RSPF is a non -specific support programme for regions of Aotearoa New Zealand. The RSPF  
does not have trade or export objectives.  
 
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