Originally from:
International Protection of Foreign Investment - 2nd Edition - Looseleaf
International Protection of Foreign Investment - 2nd Edition - Electronic
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New Zealand
Peter Bruce Hinton
Simpson Grierson
Auckland, New Zealand
Introduction
History and Background
From 1983, New Zealand underwent a period of restructuring of the economy to reduce government intervention to the minimum and to permit market forces to work freely in all areas of the economy.
Since then, successive New Zealand governments have welcomed and encouraged overseas investment. They have not favoured subsidies or tax incentives to encourage investment, however. The aim has been to get the fundamentals of the economy right, in the belief that these will give serious investors more confidence than incentives, subsidies, or grants. The current regime has been recently updated by the introduction of the Overseas Investment Act 2005, having been assented to on 21 June 2005.
Government Policy towards Foreign Investment
The New Zealand economy is dependent on export growth. Government policy encourages export activities and seeks to attract foreign investment capital and know-how for productive export-oriented industries. New Zealand is a net importer of foreign investment.
Perceived benefits of foreign investment have included:
• The inflow of capital encourages growth. That capital is typically less liquid than debt
or portfolio investment indicating a commitment to medium to long-term goals. It has been generally recognised that New Zealand’s desired growth rates cannot be generated by the amount of capital available in the domestic market.
• Efficiency and competition can be enhanced as local enterprises are encouraged by offshore influences to become internationally competitive.
• Foreign investment frequently brings with it knowledge, skills, and technology leading to more advanced production systems, management, and the opening of new markets.
• Offshore networks and relationships are expanded, including with multinational enterprises which broaden access to international best practices.
• The creation of employment opportunities.
New Zealand
Introduction
History and Background
Government Policy towards Foreign Investment
Admission of Foreign Investment
General Policy and Notification of Policies
Regulation of Admission
Treatment of Foreign Investment
Standard of Treatment
Regulations
Customs Union or Free Trade Area Agreements
Transfer of Funds
Reinvestment of Funds
Unfair Business Practices
Regulation of Takeovers
Tax
Protection of Foreign Investment
Property Protection
Investment Insurance
Guarantee by Third Party
Mortgage Pledge or Charge
Diplomatic Protection of Property Situated Abroad
Treaty Protection of Foreign Investments
Bilateral Treaties
Subrogation
Multilateral Agreements
Settlement of Investment Disputes
Alternative Disputes Resolution
Judicial Tribunals
Sanctions for Injury to Investment
Unilateral State Action to Protect Investment Abroad
Multilateral Action to Protect Investment
Peter Bruce Hinton, Simpson Grierson, Auckland, New Zealand
