Subsector: -
Level of Government: Central
Obligations Concerned: National Treatment (Investment) Senior Management and Board of Directors
Description: Investment
The Constitution of Chorus Limited requires New Zealand Government approval for the shareholding of any single overseas entity to exceed 49.9 per cent.
At least half of board directors are required to be New Zealand citizens.
Source of Measure:
Constitution of Chorus Limited
5. Sector: Communication services Audio-visual services
Subsector: -
Level of Government: Central
Obligations Concerned: National Treatment (Trade in Services and Investment). Local Presence. Prohibition of Performance Requirements
Description: Investment and Trade in Services
The acquisition of licences or management rights to use the radio frequency spectrum, or any interest in such licences or management rights, under the Radiocommunications Act 1989 by foreign governments or agents on behalf of foreign governments is subject to the written approval of the Chief Executive of the Ministry of Business, Innovation and Employment.
Source of Measure: Radiocommunications Act 1989
6. Sector: Agriculture, including services incidental to agriculture
Subsector: -
Level of Government: Central
Obligations Concerned: National Treatment (Trade in Services and Investment).Prohibition of Performance Requirements Senior Management and Board of Directors
Description: Investment and Trade in Services
Under the Primary Products Marketing Act 1953, the New Zealand Government may impose regulations to enable the establishment of statutory marketing authorities with monopoly marketing and acquisition powers (or lesser powers) for "primary products", being products derived from beekeeping, fruit growing, hop growing, deer farming or game deer, or goats, being the fur bristles or fibres grown by the goat.
Regulations may be issued under the Primary Products Marketing Act 1953 concerning a broad range of the marketing authority's functions, powers and activities. In particular, regulations may require that board members or personnel be nationals of or resident in New Zealand.
Source of Measure: Primary Products Marketing Act 1953
7. Sector: Air Transportation
Subsector: -
Level of Government: Central
Obligations Concerned: National Treatment (Investment) Senior Management and Board of Directors
Description: Investment
Only a licensed air transport enterprise may provide international scheduled air services as a New Zealand international airline. Only a licensed air transport enterprise may provide international scheduled air services, including cabotage, to/from New Zealand, as a foreign international airline. Either the Minister of Transport or the Secretary for Transport determines the issuance of international air services licences. Non-scheduled air services require either an appropriate licence or the approval of the Secretary for Transport in accordance with guidelines issued by the Minister of Transport. Such determinations shall include consideration of the provisions of New Zealand's bilateral and multilateral air services agreements. Licences may be subject to certain conditions, such as that a New Zealand international airline is substantially owned and effectively controlled by New Zealand nationals, or has its principal place of business in New Zealand.
Source of Measure:
- Civil Aviation Act 1990
- Ministerial Guidelines
8. Sector: Air Transportation
Subsector: -
Level of Government: Central
Obligations Concerned: National Treatment (Investment) Senior Management and Board of Directors
Description: Investment
No one foreign national may hold more than 10 per cent of shares which confer voting rights in Air New Zealand unless they have the permission of the Kiwi Shareholder (New Zealand Government).
In addition:
(a) no person that owns or operates an airline business, nor any other person "associated" with a person who owns or operates an airline business, may hold or have an interest in Air New Zealand unless the prior written consent of the Kiwi Shareholder (New Zealand Government) has been given;
(b) the location of the Head Office of Air New Zealand, and its principal place of business, shall be in New Zealand;
(c) at least three members of the board of directors must be ordinarily resident in New Zealand;
(d) more than half of the board of directors must be New Zealand citizens;
(e) the Chairperson of the board of directors must be a New Zealand citizen; and
(f) Air New Zealand shall continue to be incorporated and registered in New Zealand.
Source of Measure: Constitution of Air New Zealand Limited
9. Sector: All sectors
Subsector: -
Level of Government: -
Obligations Concerned : Prohibition on Performance Requirements
Description : Investment and Trade in Services
Any existing non-conforming taxation measure.
Source of Measure :
- Income Tax Act 2007
- Goods and Services Tax Act 1985
- Estate and Gift Duties Act 1968
- Stamp and Cheque Duties Act 1971
- Gaming Duties Act 1971
- Tax Administration Act 1994
10. Sector: Financial Services
Subsector: Insurance and insurance related services
Level of Government: Central
Obligations Concerned: National Treatment (Trade in Services and Investment) Market Access
Description: Investment and Trade in Services
The provision of crop insurance for wheat can be restricted in accordance with the Commodity Levies Amendment Act 1995 (CLA). Section 4 of the CLA provides for the use of funds derived under a mandatory commodity levy on wheat growers to be used for the purpose of funding a scheme insuring wheat crops against damage or loss.
The provision of insurance intermediation services related to the export of kiwifruit can be restricted in accordance with the Kiwifruit Industry Restructuring Act 1999 and regulations relating to the export marketing of kiwifruit.
Source of Measure
- Commodity Levies Act 1990 - Commodity Levies Amendment Act 1995 - Kiwifruit Industry Restructuring Act 1999 and
- Regulations.
11. Sector: Financial Services
Subsector: Banking and other financial services (excluding insurance)
Level of Government: Central
Obligations Concerned: Senior Management and Boards of Directors
Description: Investment and Trade in Services
The fund manager of a registered Kiwisaver scheme and the corporate trustee of a registered Kiwisaver scheme that is a restricted scheme must both have at least one director that is a New Zealand resident for tax purposes.
Source of Measure:
- Kiwisaver Act 2006
- Financial Markets Conduct Act 2013
12. Sector: All Sectors
Subsector: -
Level of Government: Central
Obligations Concerned: National Treatment (Investment). Market Access.Prohibition on Performance Requirements. Senior Management and Boards of Directors
Description: Investment
Consistent with New Zealand's overseas investment regime as set out in the relevant provisions of the Overseas Investment Act 2005, the Fisheries Act 1996 and the Overseas Investment Regulations 2005, the following investment activities require prior approval from the New Zealand Government:
(a) acquisition or control by non-government sources of 25 per cent or more of any class of shares (5) or voting power (6) in a New Zealand entity where either the consideration for the transfer or the value of the assets exceeds NZ$10 million;
(b) commencement of business operations or acquisition of an existing business by non-government sources, including business assets, in New Zealand, where the total expenditures to be incurred in setting up or acquiring that business or those assets exceed NZ$10 million;
(c) acquisition or control by government sources of 25 per cent or more of any class of shares (7) or voting power (8) in a New Zealand entity where either the consideration for the transfer or the value of the assets exceeds NZ$10 million;
(d) commencement of business operations or acquisition of an existing business by government sources, including business assets, in New Zealand, where the total expenditures to be incurred in setting up or acquiring that business or those assets exceed NZ$10 million;
(e) acquisition or control, regardless of dollar value, of certain categories of land that are regarded as sensitive or require specific approval according to New Zealand's overseas investment legislation; and
(f) any transaction, regardless of dollar value, that would result in an overseas investment in fishing quota.
Overseas investors must comply with the criteria set out in the overseas investment regime and any conditions specified by the regulator and the relevant Minister or Ministers.
This entry should be read in conjunction with New Zealand's List B (5).
Source of Measure
- Overseas Invesiment Act 2005 - Fisheries Act 1996
- Overseas Investment Regulations 2005
LIST B. EXPLANATORY NOTES
1. This List B sets out, pursuant to Article 12 (Non-Conforming Measures) of Chapter 8 (Trade in Services) and Article 13 (Reservations and Non-Conforming Measures) of Chapter 11 (Investment), the specific sectors, subsectors, or activities for which New Zealand may maintain existing, or adopt new or more restrictive, measures that do not conform with obligations imposed by:
(a) Article 4 (National Treatment) of Chapter 8 (Trade in Services) or Article 3 (National Treatment) of Chapter 11 (Investment);
(b) Article 9 (Most-Favoured-Nation Treatment) of Chapter 8 (Trade in Services) or Article 4 (Most-Favoured-Nation Treatment) of Chapter 11 (Investment);
(c) Article 5 (Market Access) of Chapter 8 (Trade in Services);
(d) Article 10 (Local Presence) of Chapter 8 (Trade in Services);
(e) Article 5 (Senior Management and Board of Directors) of Chapter 11 (Investment); or
(f) Article 6 (Prohibition of Performance Requirement) of Chapter 11 (Investment).
For greater certainty, Article 5 (Market Access) of Chapter 8 (Trade in Services) refers to non-discriminatory measures.
2. Article 10 (Local Presence) of Chapter 8 (Trade in Services) and Article 4 (National Treatment) of Chapter 8 (Trade in Services) are separate disciplines and a measure that is only inconsistent with Article 10 (Local Presence) of Chapter 8 (Trade in Services) need not be reserved against Article 4 (National Treatment) of Chapter 8 (Trade in Services).
3. Each entry in New Zealand’s Schedule sets out the following elements:
(a) Sector refers to the sector in which the entry is made;
(b) Subsector where referenced, refers to the specific subsector for which the entry is made;
(c) Level of Government indicates the level of government maintaining the listed measures;
(d) Obligations Concerned specifies the obligation(s) referred to in Paragraph 1;
(e) Description sets out the nature or scope of the non-conforming measures in the sectors, sub-sectors or activities covered by the entry; and
(f) Existing measures are included for transparency purposes. The measures stipulated therein are not exhaustive.
4. In accordance with Articles 12 (Schedules of Non-Conforming Measures) of Chapter 8 (Trade in Services) and Article 13 (Reservations and Non-Conforming Measures) of Chapter 11 (Investment), the Articles of this Agreement specified in the Obligations Concerned element of an entry do not apply to the sectors, subsectors, and activities identified in the Description element of that entry.
5. Where an inconsistency arises in relation to the interpretation of an entry, the Description element of the entry shall prevail to the extent of the inconsistency.
6. To clarify New Zealand's commitment with respect to Article 5 (Market Access) of Chapter 8 (Trade in Services), juridical persons supplying financial services and constituted under the laws of New Zealand are subject to non-discriminatory limitations on juridical form. (9)
7. For greater certainty, the measures that New Zealand may take in accordance with Article 3 (Prudential Measures) of Annex 8A (Financial Services), provided they meet the requirements of that Article, include those governing:
(a) licensing, registration or authorisation as a financial institution or cross- border financial service supplier, and corresponding requirements;
(b) juridical form, including legal incorporation requirements for systemically important financial institutions and limitations on deposit-taking activities of branches of overseas banks, and corresponding requirements;
(c) requirements pertaining to directors and senior management of a financial institution or cross-border financial service supplier;
(d) capital, related party exposures, liquidity, disclosure and other risk management requirements;
(e) payment, clearance and settlement systems (including securities systems);
(f) anti-money laundering and countering financing of terrorism; and
(g) distress or failure of a financial institution or cross-border financial service supplier.
8. For greater certainty, New Zealand reaffirms its right to regulate within its territory to achieve legitimate policy objectives, such as the protection of human, animal or plant life or health, social services, public education, safety, the environment including climate change, public morals, social or consumer protection, animal welfare, privacy and data protection, or the promotion and protection of cultural diversity and the promotion and protection of the rights, interests, duties and responsibilities of Maori related to Te Tiriti o Waitangi/the Treaty of Waitangi. The interpretation of Te Tiriti o Waitangi/the Treaty of Waitangi, including as to the nature of the rights and obligations arising under it, shall not be subject to the dispute settlement provisions of this Agreement.
1. Sector: All sectors
Subsector: -
Level of Government: -
Obligations Concerned: National Treatment (Trade in Services and Investment).Most-Favoured-Nation Treatment (Trade in Services and Investment). Prohibition of Performance Requirements. Senior Management and Board of Directors Local Presence
Description: Investment and Trade in Services
New Zealand reserves the right to adopt or maintain any measure with respect to:
(a) the provision of public law enforcement and correctional services; and
(b) the following, to the extent that they are social services established for a public purpose:
- child care;
- health;
- income security and insurance; public education;
- public housing;