Database

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NEW ZEALAND

Since November 1961, as amended in October 2003, last amended in April 2023

Pillar Intellectual Property Rights (IPRs)  |  Indicator Effective protection covering trade secrets
Crimes Act 1961

Lack of comprehensive regulatory framework covering trade secrets
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 Section 230 of the Crimes Act 1961, misappropriation of a trade secret, with the intent to obtain a financial or economic advantage or to cause loss to another, is a crime punishable by up to five years in prison. 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 (Section 249).
Coverage Horizontal

NEW ZEALAND

N/A

Pillar Telecom infrastructure & competition  |  Indicator Passive infrastructure sharing obligation
Lack of obligation to share passive infrastructure
It is reported that there is no obligation for passive infrastructure sharing in New Zealand to deliver telecom services to end users. However, it is practised in both the mobile and fixed sectors based on commercial agreements.
Coverage Telecommunications sector

NEW ZEALAND

N/A

Pillar Telecom infrastructure & competition  |  Indicator Functional/accounting separation for operators with significant market power
Lack of mandatory accounting separation for dominant network operators
It is reported that New Zealand does not mandate accounting separation for operators with significant market power (SMP) in the telecom market. However, Under the Telecommunications Act, functional separation is mandated for operators with significant market power.
Coverage Telecommunications sector

NEW ZEALAND

Since September 2001, last amended in December 2020

Pillar Telecom infrastructure & competition  |  Indicator Licensing restrictions to operate in the telecom market
Telecommunications Act 2001
Interconnection with and pricing to networks are regulated under Schedule 1 of the Telecommunications Act 2001. The 2011 amendments to the Telecommunications Act introduced information disclosure requirements for the companies building the ultrafast broadband fibre network and Chorus. The companies are required to meet annual reporting requirements, assurance requirements, certificates and statutory declarations, and data retention requirements.
Coverage Telecommunications sector

NEW ZEALAND

Since November 2013

Pillar Telecom infrastructure & competition  |  Indicator Licensing restrictions to operate in the telecom market
Telecommunications (Interception Capability and Security) Act 2013
The Telecommunications (Interception Capability and Security) Act 2013 creates upon a network operator 1) a duty to implement full interception capability (Section 9) and 2) a duty to assist a surveillance agency upon an inception warrant or any other lawful interception authority (Section 24). In order to comply with the assistance duty, a network operator must decrypt telecommunication on that operator’s public telecommunications network or telecommunications service "if (a) the content of that telecommunication has been encrypted; and (b) the network operator intercepting the telecommunication has provided that encryption."
However, this does not require a network operator to "(a) decrypt any telecommunication on that operator’s public telecommunications network or telecommunications service if the encryption has been provided by means of a product that is (i) supplied by a person other than the operator and is available to the public or (ii) supplied by the operator as an agent for that product; and (b) ensure that a surveillance agency has the ability to decrypt any telecommunication.
Nevertheless, the existence of these duties together practically means that network operators cannot design and implement end-to-end encryption. A joint communique called International Statement - End-to-End Encryption and Public Safety - expressed concern about the challenges that end-to-end encryption will pose to law enforcement but at the same time acknowledged privacy, cybersecurity, and intellectual property protection. The government' stated that it is committed to collaborating with the industry to develop "reasonable proposals" on this issue.
Coverage Telecommunications sector

NEW ZEALAND

Since April 1994

Pillar Telecom infrastructure & competition  |  Indicator Signature of the WTO Telecom Reference Paper
WTO Telecom Reference Paper
New Zealand has appended the World Trade Organization (WTO) Telecom Reference Paper to its schedule of commitments.
Coverage Telecommunications sector

NEW ZEALAND

Reported in 2018, last reported in 2023

Pillar Telecom infrastructure & competition  |  Indicator Presence of an independent telecom authority
Lack of an independent telecom authority
It has been reported that New Zealand lacks a telecommunications authority whose decision-making process is entirely independent of government influence. The Ministry of Business, Innovation and Employment (MBIE) is responsible for shaping the telecommunications regulatory framework, which includes establishing the rules governing the operations of telecommunications companies and ensuring product compliance. In addition, the New Zealand Commerce Commission plays a key role in overseeing competition within the telecommunications sector and regulating certain services. It holds the authority to recommend whether services should be regulated or deregulated. As an independent statutory body, the Commission is tasked with enforcing the Commerce Act and is primarily accountable to the Minister of Commerce and Consumer Affairs for its operational performance and outcomes. The Commission may also set terms and conditions, including pricing, for regulated services through Standard Terms Determinations. Furthermore, it possesses the power to mandate the availability of industry-wide services, such as number portability, impose information disclosure obligations, and implement structural remedies, including the separation of services. Although the Commerce Commission operates independently, the Minister for Communications retains the authority to accept or reject the Commission's recommendations on regulating or deregulating services. Additionally, the Minister may issue a "statement of economic policy," which the Commission is required to consider in its decision-making process.
Coverage Telecommunications sector

NEW ZEALAND

Since August 2005

Pillar Foreign Direct Investment (FDI) in sectors relevant to digital trade  |  Indicator Maximum foreign equity share
Overseas Investment Act 2005
There are no foreign ownership limitations in sectors relevant for digital trade.
Coverage Horizontal

NEW ZEALAND

Since September 1993, as amended in May 2015, last amended in November 2022
Since July 1994, last amended in June 2019

Pillar Foreign Direct Investment (FDI) in sectors relevant to digital trade  |  Indicator Nationality/residency requirement for directors or managers
Companies Act 1993

Companies Act Regulations 1994
According to Section 10 of the Companies Act 1993 (introduced in May 2015 by the Companies Amendment Act 2015), any company incorporated in New Zealand is required to have at least one director living in New Zealand or living in an 'enforcement country' and is a director of a company that is registered in that enforcement country. Per Section 12 of the Companies Act Regulations 1994, the only enforcement country currently named in the regulations is Australia. The residency requirement does not apply to a branch of an overseas company registered in New Zealand that merely "carries on business" in New Zealand, as defined in Section 332 of the Companies Act.
Coverage Horizontal

NEW ZEALAND

Since August 2005
Since June 2020

Pillar Foreign Direct Investment (FDI) in sectors relevant to digital trade  |  Indicator Screening of investment and acquisitions
Overseas Investment Act 2005

Overseas Investment (Urgent Measures) Act 2020
New Zealand has imposed a three-stage screening process for foreign investments (FDI). According to Section 11 of the Overseas Investment Act of 2005, foreign investors seeking to acquire a significant business asset must obtain consent. Section 13 defines a significant business asset as an investment involving 25% or greater ownership or exceeding NZD 100 million (approx. USD 71 million). Section 18 specifies the approval criteria (known as the investor test), which assess the investor’s business experience and financial capability to manage the investment.
Additionally, FDI may be subject to a national interest test under the Urgent Measures Act of 2020. As per Section 20C, if a transaction is deemed contrary to the national interest, consent may be denied. Section 20A specifies that transactions subject to this test include investments in strategically important sectors, such as telecommunications infrastructure and media entities, as outlined in the Guidance Note.
Lastly, investment activities may also be subject to "call-in transactions," where the government has the authority to block, impose conditions on, or mandate the disposal of investments if they are deemed to pose a threat to national security or public order, as detailed in Part 3 of the Urgent Measures Act.
Coverage Significant business assets or strategically important businesses
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ITA: [{"meta_value":"0.00"}]

NEW ZEALAND

ITA signatory? I II

Pillar Tariffs and trade defence measures applied on ICT goods  |  Indicator Effective tariff rate on ICT goods (applied weighted average)
Effective tariff rate to ICT goods (applied weighted average)
0.46%
Coverage rate of zero-tariffs on ICT goods (%)
77.36%
Coverage: ICT goods

NEW ZEALAND

Since March 1997
Since December 2015

Pillar Tariffs and trade defence measures applied on ICT goods  |  Indicator Participation in the WTO Information Technology Agreement (ITA) and 2015 expansion (ITA II)
Information Technology Agreement (ITA I)

ITA Expansion Agreement (ITA II)
New Zealand is a signatory of the World Trade Organization (WTO) Information Technology Agreement (ITA) of 1996 and its 2015 expansion (ITA II).
Coverage ICT goods

NEW ZEALAND

Since October 2019
Since December 2020

Pillar Public procurement of ICT goods and online services  |  Indicator Other limitations on foreign participation in public procurement
Government Procurement Rules

Progressive Procurement Policy
Under Rule 17 of the Government Procurement Rules, agencies must consider how they can create opportunities for New Zealand businesses, including Māori, Pasifika and regional businesses, as well as social enterprises. According to the Progressive Procurement Policy announced in December 2020, agencies need to ensure that at least 8% of the total number of annual procurement contracts are awarded to Māori businesses. According to the law, a Māori business for government procurement purposes is (i) one that has at least 50% Māori ownership or (ii) a Māori Authority as defined by the Inland Revenue Department.
Coverage Horizontal

NEW ZEALAND

Since August 2015

Pillar Public procurement of ICT goods and online services  |  Indicator Signatory of the WTO Agreement on Government Procurement (GPA) with coverage of the most relevant services sectors (CPC 752, 754, 84)
WTO Agreement on Government Procurement (GPA)
New Zealand is a party to the World Trade Organization (WTO) Agreement on Government Procurement (GPA), and its commitments also cover the services sectors considered most important for digital trade, namely telecommunication services (CPC752), telecommunication-related services (CPC 754), and computer and related services (CPC 84).
Coverage Horizontal

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