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U.S. Department of State 
New Zealand Country Commercial Guide  
Office of the Coordinator for Business Affairs 
 
 
                      TABLE OF CONTENTS 
 
 
CHAPTER I.  EXECUTIVE SUMMARY 
            OVERVIEW OF IMPORT MARKET 
            BRIEF SYNOPSIS OF COMMERCIAL ENVIRONMENT 
            BUSINESS ATTITUDE TOWARD THE U.S. 
            MAJOR BUSINESS OPPORTUNITIES 
            MAJOR ROADBLOCKS TO DOING BUSINESS 
            NATURE OF LOCAL AND THIRD COUNTRY COMPETITION 
 
CHAPTER II.  ECONOMIC TRENDS AND OUTLOOK 
             MAJOR TRENDS AND OUTLOOK 
             PRINCIPAL GROWTH SECTORS 
             GOVERNMENT ROLE IN THE ECONOMY 
             BALANCE OF PAYMENTS SITUATION 
             INFRASTRUCTURE SITUATION  
 
CHAPTER III.  POLITICAL ENVIRONMENT 
              NATURE OF POLITICAL RELATIONSHIP WITH THE  
              UNITED STATES 
              MAJOR POLITICAL ISSUES AFFECTING THE BUSINESS  
              CLIMATE 
              BRIEF SYNOPSIS OF POLITICAL SYSTEM, SCHEDULE  
              FOR ELECTIONS, AND ORIENTATION OF MAJOR  
              PARTIES. 
 
CHAPTER IV.  MARKETING U.S. PRODUCTS AND SERVICES 
             DISTRIBUTION AND SALES CHANNELS 
             USE OF AGENTS/DISTRIBUTORS; FINDING A PARTNER 
             FRANCHISING 
             DIRECT MARKETING 
             JOINT VENTURES/LICENSING 
             STEPS TO ESTABLISH AN OFFICE 
             SELLING FACTORS/TECHNIQUES 
               ADVERTISING AND TRADE PROMOTION 
             PRICING PRODUCT 
             SALES SERVICE/CUSTOMER SUPPORT 
             SELLING TO THE GOVERNMENT 
             PROTECTING YOUR PRODUCT FROM IPR INFRINGEMENT 
             NEED FOR A LOCAL ATTORNEY 
 
CHAPTER V.  LEADING TRADE PROSPECTS FOR U.S. BUSINESS 
            BEST PROSPECTS FOR NON-AGRICULTURAL GOODS AND  
            SERVICES 
            BEST PROSPECTS FOR AGRICULTURAL PRODUCTS 
            SIGNIFICANT INVESTMENT OPPORTUNITIES 
 
CHAPTER VI.  TRADE REGULATIONS AND STANDARDS 
             TRADE BARIERS, INCLUDING TARIFFFS, NON-TARIFF  
             BARRIERS AND IMPORT TAXEX 
             CUSTOMS VALUATION 
             IMPORT LICENSES 
             EXPORT CONTROLS 
             IMPORT/EXPORT DOCUMENTATION 
             TEMPORARY ENTRY 
             LABELING, MARKING REQUIREMENTS 
             PROHIBITED IMPORTS 
             STANDARDS (e.g. ISO 9000 USAGE) 
             FREE TRADE ZONES/WAREHOUSES 
             SPECIAL IMPORT PROVISIONS 
             MEMBERSHIP IN FREE TRADE ARRANGEMENTS 
 
CHAPTER VII.  INVESTMENT CLIMATE 
              OPENNESS TO FOREIGN INVESTMENT 
              CONVERSION AND TRANSFER POLICIES 
              EXPROPRIATION AND COMPENSATION 
              DISPUTE SETTLEMENT 
               PERFORMANCE REQUIREMENTS 
              RIGHT TO PRIVATE OWNERSHIP AND ESTABLISHMENT 
              PROTECTION OF PROPERTY RIGHTS 
              REGULATORY SYSTEM:  LAWS AND PROCEDURES 
              EFFICIENT CAPITAL MARKETS AND PORTFOLIO  
              INVESTMENT 
              POLITICAL VIOLENCE 
              BILATERAL INVESTMENT AGREEMENTS 
              OPIC AND OTHER INVESTMENT INSURANCE PROGRAMS 
              LABOR 
              FOREIGN TRADE ZONES/FREE PORTS 
              CAPITAL OUTFLOW POLICY 
              FOREIGN DIRECT INVESTMENT STATISTICS 
              MAJOR FOREIGN DIRECT INVESTMENTS 
 
CHAPTER VIII.  TRADE AND PROJECT FINANCING 
               BRIEF DESCRIPTION OF BANKING SYSTEM 
               FOREIGN EXCHANGE CONTROLS AFFECTING TRADING 
               GENERAL FINANCING AVAILABILITY 
               HOW TO FINANCE EXPORTS/METHODS OF PAYMENTS 
               TYPES OF AVAILABLE EXPORT FINANCING AND  
               INSURANCE 
               PROJECT FINANCING AVAILABLE 
               LIST OF BANKS WITH CORRESPONDENT U.S. BANKING  
               ARRANGEMENTS 
 
CHAPTER IX.  BUSINESS TRAVEL 
             BUSINESS CUSTOMS 
             TRAVEL ADVISORY SERVICES AND VISAS 
             HOLIDAYS 
             BUSINESS INFRASTRUCTURE 
 
CHAPTER X.   APPENDICES 
 
APPENDIX A   COUNTRY DATA 
	 
APPENDIX B   DOMESTIC ECONOMY 
 
APPENDIX C   NEW ZEALAND TRADE STATISTICS 
 
APPENDIX D   INVESTMENT STATISTICS 
 
APPENDIX E   U.S. AND NEW ZEALAND CONTACTS 
 
APPENDIX F   MARKET RESEARCH 
 
     1.   LIST OF AVAILABLE AND UPCOMING DOC/ISAS 
     2.   LIST OF USDA/FAS/COMMODITY REPORTS AND MARKET BRIEFS 
 
APPENDIX G   TRADE EVENT SCHEDULE 
     1.   PRIVATE SECTOR SPONSORED 
     2.   US&FCS - USDOC SPONSORED 
 
 
 
 
                  THE NEW ZEALAND COUNTRY COMMERCIAL GUIDE 
 
      June 1995 
 
 
This Country Commercial Guide (CCG) presents a comprehensive look at New 
Zealand's commercial environment through economic, political, and market 
analyses. 
 
The CCGs were established by recommendation of the Trade Promotion 
Coordinating Committee (TPCC), a multi-agency task force, to consolidate 
various reporting documents prepared for the U.S. business community.  
Country Commercial Guides are Prepared annually at U.S. Embassies 
through the combined efforts  
of several U. S. government agencies. 
 
 
CHAPTER I.   EXECUTIVE SUMMARY:  New Zealand is the perfect export 
destination for new to export companies.  New Zealand is an English 
speaking country with a strong and stable democracy.  Business practices 
are very similar to those in the U.S.  Exporters will find 
transportation and foreign exchange issues to be the largest hurdles to 
cross.  While New Zealand's population is small, Kiwis tend to be early 
adapters and eager to try new technologies.  New Zealand's strong export 
record with Japan and its positive trend of export growth to ASEAN make 
it an ideal joint venture partner for re-exportation of U.S. made goods. 
 
The United States is a close second to Australia as New Zealand's 
largest source of imports.  This is  despite Australia's and New 
Zealand's free trade policy. The U.S. is New Zealand's third largest 
export market.  New Zealand ranks in the top 50 (41st in 1993) of U.S. 
export markets.  Items in Chapter 84 (nuclear reactors, boilers, 
machinery and mechanical appliances; parts thereof) and Chapter 88 
(aircraft, spacecraft, and parts thereof) of the harmonized code have 
averaged 46% of the total harmonized classifications imports over the 
past five years.  During that same period there has been a good deal of 
shifting of lower volume activity from one to another classification, 
opening new market opportunities to U.S. exporters. 
 
New Zealand companies and foreign exporters [to New Zealand] operate in 
one of the least regulated markets in the world.  The foundation of New 
Zealand's growing economic prosperity has been its relatively low 
interest rates and very low inflation, combined with political stability 
and business deregulation.   
 
Foreign goods and investors are welcome, particularly those operating in 
sectors that can contribute to foreign-exchange earnings and employment.  
Frequent requests for manufacturing and service industry contacts, along 
with the U.S.'s strong trading position with New Zealand, reflect a high 
regard placed on U.S. products and services. 
 
Major business opportunities for U.S. exporters will emerge from the 
growing discretionary income of the New Zealand public (a function of 
its growing economy) and its recent emphasis on consumer choice.  Niche 
markets (e.g., specialty food, cellular telephones, paperback books, 
film and videos); hospital supplies; and agricultural production items 
(e.g., machinery, chemicals, genetics) show signs for growth in 1995. 
 
The only major roadblock to doing business in New Zealand would be the 
determination that one's product or service is inappropriate for the 
market. 
 
Competition is open and encouraged by the economic reforms undertaken by 
the New Zealand government.  The only disadvantage to U.S. imports is 
when they face competition from similar products made in Australia.  
Australian goods are imported into New Zealand without tariffs due to 
the Closer Economic Relationship with Australia (CER).  The U.S. also 
loses some ground to Canada which receives preferential tariff treatment 
for some products. 
 
 
 
CHAPTER II.  ECONOMIC TRENDS AND OUTLOOK 
 
MAJOR TRENDS AND OUTLOOK:  In 1994 the New Zealand economy grew at a 
rate of about six percent.  In 1995, GDP growth began to slow, but is 
still expected to be about 3 percent per year into 1997.  This growth is 
accompanied by productive investment, which is also expected to continue 
to be strong, requiring the importation of the sort of capital goods 
which the United States is well placed to supply.  Inflation, measured 
by the annual growth rate of the consumer price index (CPI), began to 
increase in late 1994, and is expected to peak above four percent in mid 
1995, before falling below two percent in mid 1996.  In mid 1994, the 
government balanced its budget for the first time in sixteen years, and 
budget surpluses are expected to continue, enabling the government to 
begin repayment of the large foreign and domestic public debt, totaling 
33.15 billion New Zealand Dollars (NZD) (21.6 billion U.S. Dollars 
(USD)) in mid 1995.  This net public debt figure was 37.9 percent of GDP 
in mid 1995, and the government intends to reduce this ratio to 27.3 
percent of GDP by mid 1997.  The government expects to eliminate net 
foreign currency debt by mid 1997.  Unemployment fell steadily during 
1994, reaching 6.6 percent, the lowest level in six years, in March 
1995.  Unemployment is expected to continue to decline into 1996.  
Shortages of skilled labor may appear in some areas, but these are not 
expected to severely constrain growth.  The principal factors slowing 
growth in 1995 are higher interest rates and foreign exchange rates, 
both fostered by the Reserve Bank to constrain inflation. 
 
PRINCIPAL GROWTH SECTORS:  The largest contributions to annual growth 
for the year ended December 1994 were manufacturing and transport, 
communications, business and personal services industries.  Starting in 
1993 and continuing through 1994 the following sectors of New Zealand's 
economy reflected strong growth: 
 
Percentage Change in Annual GDP at Constant Prices 
Seasonally Adjusted 
 
Sector    Year ended 12/92    12/93    12/94 
 
Construction   -2.4   17.6    12.0 
Trade, Restaurants and Hotels  1.8   5.0   10.5 
Electricity, Gas, and Water   -6.9   7.2    8.9 
Transportation, Communications, 
     Business and Personal Services   3.6   4.8   7.1 
Manufacturing   6.0   5.9   5.6 
 
Construction activity continues to center around large projects such as 
the Museum of New Zealand, the Auckland casino, and retail complexes and 
hotels.   
 
The increase in the Trade, Restaurants and Hotels sector reflects the 
14.3 percent increase in tourist numbers experiences December 1994 
quarter compared to the same quarter in 1993.   
 
Manufacturing production is now at record levels.  The increase is broad 
based with fabricated metals, pulp and paper, and wood and wood products 
being the major contributors.   
 
The two remaining growth sectors (Electricity, Gas, and Water and 
Transportation, Communications, Business and Personal Services) are 
enjoying the downstream benefits and reinvestment generated by the three 
sectors listed previously. 
 
Food and beverage products (seafood, beef, sheepmeat, venison, dairy, 
processed foods, apples and kiwifruit, wine, agtritech, wool, leather, 
forest products) will continue to be an important part of New Zealand's 
export trade contributing over half of New Zealand's total forex 
earnings and accounts for 12 percent of GDP. 
Manufactured products (building industry, marine, apparel, engineering, 
telecommunications, software, education, tourism, consultancy, aviation 
training, film and TV commercials) contributes 10 percent of GDP and 
accounts for over 16 percent of total exports.  Manufacturing products 
have shown the largest growth as an export segment in 1995.  New Zealand 
expects to gain significantly from the GATT Uruguay Round Agreement, 
when it comes into force in 1995, and progressively removes 
international barriers to agricultural trade, and reduces agricultural 
export subsidies. 
 
GOVERNMENT ROLE IN THE ECONOMY:  New Zealand prides itself on having 
removed the government from most previous roles in the economy.  After 
ten years of economic restructuring, the economy operates almost 
completely on market forces, with very little government influence.  The 
principal remaining influences are the government's spending and tax 
powers, and the Reserve Bank Act of 1989 which sets the primary function 
of the Reserve Bank as achieving and maintaining price stability.  A 
subsequent agreement between the Reserve Bank and the Treasury defines 
price stability as an annual underlying inflation rate of between zero 
and two percent, resulting in the relatively low price inflation cited 
above.  The government's main budget priorities are to continue to run 
budget surpluses, to use the surpluses to retire public debt, and 
perhaps (in 1996 or 1997) to reduce income taxes for lower and medium 
income New Zealanders.  Significant spending increases in the budget for 
the fiscal year beginning July 1, 1995, are about USD 560 million 
(total) for education, health and social welfare. 
 
While the government once owned major economic enterprises, such as the 
railroad and telephone monopolies, these have been progressively 
privatized.  The main economic activities still owned by the government 
are the production and transmission of electric power, some radio and 
television broadcasting, and some forests.  In 1995 the government was 
reviewing its future role in all three of these industries. 
 
BALANCE OF PAYMENTS SITUATION:  The current account deficit, NZD 1.311 
billion (USD 726 million) for 1994, is expected to remain at or about 
that amount, or about 1.5 percent of GDP, for the next few years.  While 
merchandise exports earn an annual surplus of about NZD 3.2 billion (USD 
two billion), services run a deficit of approximately NZD 1.5 billion 
(USD one billion).  Invisibles are expected to remain strongly negative 
at about NZD 4.5 billion (USD 2.9 billion) under the influence of the 
deficit in both services trade and investment income.  In fact the 
invisibles deficit almost equals the investment income deficit, which is 
primarily due to the burden from the interest costs of external debt. 
 
INFRASTRUCTURE SITUATION:  New Zealand has an excellent transport and 
marketing infrastructure with the majority of the country well serviced 
by road, air and sea distribution systems.  Eighty-five percent of the 
population lives in urban areas, making for easy access for products.  
The government has budgeted and extra USD 136 million for road 
maintenance and improvements for the three fiscal years until mid 1998.  
By that time total annual road funding will be USD 538 million. 
 
New Zealand has nearly 2,485 miles of railroad track which link almost 
all the principal centers of population.  The New Zealand Government 
corporatized its railroad assets (later to be known as New Zealand Rail 
Limited) in 1992, and sold it to a consortium of foreign and domestic 
companies headed up by Wisconsin Rail in 1993.  New Zealand Rail's 
InterIsland Line operates the main ferry service between the North and 
South Islands.  This service carries passenger, rail and road traffic.  
Other intercoastal shipping services also carry container and roll-
on/roll-off traffic between major cities.   
 
The deregulation of domestic aviation commenced in 1983 and was 
completed in 1990 with abolition of air service licensing.  Air New 
Zealand and Ansett New Zealand are the major domestic carriers.  
International air services are operated in accordance with formal 
bilateral air transport agreements.  In 1995 there were 26 international 
airlines operating to New Zealand.  (United Airlines was the only U.S. 
passenger carrier.)   
 
Over 90 percent of New Zealand exports and imports by value, and almost 
99 percent by volume, are carried by sea.  Conference lines handle much 
of the country's overseas shipping.  Port companies established in 1988, 
operate 13 major commercial ports.  These ports are undergoing vast 
improvements in productivity and usage due to corporatization, and in 
one case, privatization.  In 1992, a total of 15.8 million gross tonnes 
was loaded onto and 8.3 million gross tonnes was unloaded off overseas 
cargo vessels.  Most of this was handled by bulk vessels.  Coastal trade 
focuses on cement, coal and coke, petroleum products, sand and shingle, 
motor vehicles, container goods and other miscellaneous items.  In 
total, 7.1 million gross tonnes was loaded on and 6.7 million gross 
tonnes was unloaded from coastal vessels in 1992.II. 
 
 
CHAPTER III.   POLITICAL ENVIRONMENT  
 
NATURE OF BILATERAL RELATIONSHIP WITH THE UNITED STATES:  U.S. relations 
with New Zealand are generally excellent.  The two countries cooperate 
closely on a wide range of trade, scientific, and other issues.  There 
are no significant economic issues which threaten our thriving bilateral 
trade and investment.  The major political disagreement concerns New 
Zealand's legislation prohibiting the entry of nuclear powered or 
nuclear armed vessels.  Having determined that New Zealand's anti-
nuclear law is incompatible with full military cooperation, the U.S. 
Government suspended its security obligations with New Zealand under the 
ANZUS Treaty.  In February 1994, the U.S. restored senior-level contacts 
on political, strategic, and broad security issues with New Zealand in 
hopes that upgraded dialogue would, over time, resolve the dispute and 
lead to the restoration of the full relationship our two countries 
enjoyed before 1987. 
 
The initial high level visit was made by Admiral Larson, then Commander 
in Chief, U.S. Pacific Forces in March of 1994.  This was followed by 
various visits by dignitaries of both governments, culminating in March 
1995 with a visit by Prime Minister Bolger to the White House.  
Relations are warming, but the "unfinished business" of the anti nuclear 
legislation remains a block to ally status and full security 
relationships. 
 
MAJOR POLITICAL ISSUES AFFECTING THE BUSINESS CLIMATE:  The major New 
Zealand domestic political issue affecting business is whether, having 
successfully restructured the economy from government-regulated to 
market-determined, and balanced the budget for the first time in sixteen 
years, the government might enact economic and social legislation and 
budgets which would threaten growth and the reduction of the large 
public debt. 
 
Most of the economic restructuring is now widely accepted.  However it 
is not inconceivable that a future government might increase social 
services spending so much that the debt could not be reduced, amend the 
Employment Contracts Act to reintroduce labor rigidities, or amend the 
Reserve Bank Act to add full employment as a goal for the Reserve Bank 
(or simply widen the agreed inflation range defined as price stability).  
To one extent or another, all of these steps have been proposed by 
opponents of the present government. 
 
THE POLITICAL SYSTEM, ELECTIONS, ORIENTATION OF POLITICAL PARTIES:  New 
Zealand is a parliamentary democracy within the British Commonwealth, 
with a one-house legislature.  The head of government is the Prime 
Minister, who must be a member of parliament, and is usually the leader 
of the political party with the largest number of seats in the 
parliament.  The head of State is the British Monarch, represented in 
New Zealand by the Governor General.  The Cabinet, formed of Ministers 
chosen by the governing party or parties from among its members of 
parliament, governs through ministries and departments staffed by 
professional civil servants.  The court system is based on the British 
legal system.  The highest court of appeal is the Privy Council in 
London. 
 
In a referendum associated with the parliamentary election of November 
6, 1993, New Zealand decided to shift to proportional representation for 
elections to its parliament.  Based on a system used in Europe, this new 
system, "Mixed Member Proportional," or "MMP," will come into play in 
any election after about mid 1995.  A new parliamentary election will be 
required by November 1996.  Under MMP, each voter will have two votes -- 
one for an individual candidate to represent his voting district in the 
parliament, and a second vote for political party preference.  The 
second vote will determine the percentage make-up of the new parliament.  
All those elected in the first vote will be seated in the parliament, 
regardless of the second vote.  It is presumed that under the new 
system, no one party will likely receive enough votes to have a majority 
of seats, and therefore any government will be a coalition of two or 
more parties or will be a "minority government" governing with the 
acquiescence of the other parties.   
 
In mid 1995, the government was controlled by the National Party, which 
held forty-eight of the ninety-nine seats in parliament.  (Under MMP 
there will be more than 100 seats.)  The National Party, in power since 
1990, is considered to be the most business oriented and free-market 
oriented of the two major parties.  In 1995, the largest opposition 
party was the Labour Party.  Although Labour actually introduced most of 
the reforms which brought New Zealand back into a market-oriented 
economy in the late 1980's, it now places less emphasis on the market 
approach and is more interested in social issues than National.  Labour 
had 44 seats in parliament.  Two smaller parties held two seats each.  
The Alliance (of five smaller parties, including the environmentalist 
Greens) believes that the government should take a larger role in the 
economy, and strive harder for full employment and more generous social 
welfare.  The New Zealand First Party also supports greater spending on 
social needs, but (unlike the Alliance) does not call for this to be 
financed by higher taxes.  In addition, by mid 1995, three major-party 
members of parliament, two from National and one from Labour, had left 
their old parties to start new political groups of uncertain viability.  
 
 
CHAPTER IV.   MARKETING U.S. PRODUCTS AND SERVICES 
 
DISTRIBUTION AND SALES CHANNELS:  Marketing channels in New Zealand are 
very similar to those found in the U.S.  The size of the market will 
allow one to two distributors per unique product/manufacturer. 
 
The principal import channels are sales agents, importer-distributors 
(distributors who import and stock certain lines and take orders for 
direct shipment of others), and direct importers and users.  Sales 
agents are the common medium for selling a variety of products, 
including producer's materials bought according to specifications and 
consumer goods for distribution to large wholesalers and retailers.  The 
preference for buying direct from manufacturers is well established in 
New Zealand.  A number of sales agents carrying a broad range of 
products have developed special departments and technical personnel to 
market products requiring specialized knowledge. 
 
Agents or importer-distributors are a common channel for the 
distribution of products involving technical knowledge, service, repairs 
and parts, and other more involved service for the manufacturer.  
Typical products handled are metalworking machinery and equipment; 
agricultural and electrical machinery; transportation, medical, and 
scientific equipment; measuring and testing instruments; and certain 
kinds of consumer durables.  Importer-distributors frequently are used 
to sell certain chemical products, textiles, foodstuffs, and other 
consumer goods where stocked supplies are an important factor.  A number 
of large retailers also buy through purchasing offices in the United 
States and other countries.  There is a good network of agencies that 
specialize in handling refrigerated and frozen foodstuffs throughout New 
Zealand. 
 
Numerous subsidiaries of foreign manufacturers import directly from 
parent companies and distribute products to round out or supplement 
their domestic production.  Import and distribution by a New Zealand 
branch or subsidiary is common when the volume is substantial and the 
foreign parent wishes to retain control of distribution. 
 
A number of well established companies with nationwide networks of 
offices perform, in addition to trading activities, a broad range of 
other functions such as transportation, packaging, manufacturing, and 
distribution at both the wholesale and retail levels.  These firms are 
usually excellent representatives for new products seeking market 
penetration, although they usually import products to complement 
existing lines. 
 
With the growth of the New Zealand economy, there has come some blurring 
of the traditional pattern of the channels of distribution.  In the 
past, wholesalers provided the link between manufacturers and retailers.  
Large department and chain stores dealing directly with manufacturers or 
having factories of their own, and associations of retailers buying in 
bulk, together account for a significant volume of goods.  In addition, 
some manufacturers have established organizations for the purpose of 
selling direct to retailers, while smaller manufacturers often sell to 
retailers located in areas adjacent to their factories.  Wholesalers 
sometimes extend the scope of their activity to include manufacturing, 
packaging and retailing. 
 
USE OF AGENTS/DISTRIBUTORS; FINDING A PARTNER:  Many New Zealand agents 
and distributors are active participants in trade fairs world-wide as 
both exhibitors and attendees.  This activity places them in direct 
contact with new product opportunities.  Manufacturers then use their 
own credit and reference checking resources to verify the competency of 
the agent-distributor. 
 
In New Zealand, the U.S. and Foreign Commercial Service (US&FCS) has had 
a great deal of success with the Trade Opportunity Program (TOP), 
Agent/Distributor Service (ADS), World Trader Data Reports (WTDR), and 
most recently the Gold Key Service, as productive means for U.S. 
manufacturers to locate effective sales and distribution channels.  The 
U.S. Foreign Agricultural Service (FAS) (Wellington) has a comprehensive 
listing of food importers and distributors as well as their principal 
contacts, and also offers exporters the Agriculture Information and 
Marketing Services (AIMS) buyer alert network to find buyers. 
FRANCHISING:  While franchising in New Zealand has only been active in 
the last six years, it is becoming an increasingly important way of 
doing business as New Zealand companies seek ways to expand in a cost-
effective yet profitable manner.  New Zealand has a very high proportion 
of small and medium size businesses; many are taking advantage of the 
economic upturn and franchising their businesses.  According to recent 
estimates, there are between 150 and 200 systems (franchisors) 
accounting for 2-3% of sales.  Most of the initial growth was 
concentrated in retail, but has recently included the service sector.  
As of mid 1994, specific regulations governing franchising had not been 
enacted or proposed. 
 
U.S. based companies have found a great deal of success in franchising 
in New Zealand.  The best example is McDonalds which has its fourth 
largest franchise location per capita in New Zealand (after the U.S., 
Canada, and Australia). 
 
DIRECT MARKETING:  Direct marketing started in New Zealand with direct 
mail solicitation, often for articles of apparel.  In the last six 
years, it has become the fastest-growing distribution channel in New 
Zealand. The New Zealand Direct Marketing Association estimates that 
direct marketing is now a US 1.34 billion dollar industry. The 
Association's membership grew by over 40% in the last twelve months.   
 
The deregulation and privatization of the postal system (NZ Post) has 
opened the door to special services.  NZ Post offers everything from 
bulk mailing rates, data processing, and bonded goods storage to 
remittance processing.  All but the mail processing is also offered by 
private third parties.  Direct television marketing activity has 
increased with the use by internationally based marketers using pay-for-
view channels that access more than one country.  Retailers and the 
educational sectors use direct response press activity to publicize 
immediate opportunities.  Telemarketing is used for direct sales, lead 
generation, inquiry qualification, customer service operations, 
surveying and research, validation of previous orders, promulgating 
advertising messages and public image building, credit handling and for 
0800 number (akin to 800 numbers in the U.S.) marketing -- 
telemarketing's hottest growth area. 
 
JOINT VENTURES/LICENSING:  There are no compulsory requirements for 
foreign companies to form a joint venture with a New Zealand entity when 
starting up operations.  Some U.S. firms do choose, for their own 
strategic reasons, to join forces with established New Zealand firms to 
jointly manufacture and market their products. 
 
Licensing by the New Zealand Government for export and import activity 
was repealed as part of the significant deregulation of the economy that 
occurred in 1983/84.  
 
STEPS TO ESTABLISH AN OFFICE:   
 
1.   INDIVIDUAL PROPRIETOR:  As in the United States, an individual may 
establish a business without incorporation, subject to various 
formalities and authorizations that may apply to specific types of 
activities.  The owner has the sole responsibility for the operation and 
is personally liable for debts of the business. 
 
2.   PARTNERSHIP:  The types of partnerships and the general principles 
relating to the rights and liabilities of partners are similar to those 
applying under English or American law.  Generally, a partner is jointly 
and separately liable for all debts of the firm while that person is a 
partner. 
 
     A special partnership, similar to a limited partnership under 
English law, may be formed for transaction of business other than 
banking and insurance.  Such a partnership must be registered and 
consist of general partners and special partners.  Special partners may 
not transact the business of the partnership.  Rather, they contribute 
specific sums of money to the capital of the business and, beyond that 
sum, they are not generally responsible for any debt of the partnership. 
 
3.   COMPANY:  New Zealand companies law has recently been substantially 
amended.  From July 1, 1994, the new Companies Act 1993 will govern all 
new companies (and existing companies which re-register under the new 
Act).  The Companies Act of 1955 will continue to govern existing 
companies until they voluntarily re-register, or until 30 June 1997, 
whichever is the sooner. 
 
     Under both Acts, companies may have limited or unlimited liability.  
However, the great majority of companies are established as limited 
liability companies.  The shareholders of limited liability companies 
are liable to creditors on dissolution only to the extent of any unpaid 
calls on their shares.  A limited liability company must have the word 
"Limited" as the last word of its name. 
 
     Under the new Act, there is no distinction drawn between private 
and public companies.  However, under the 1955 Act, private companies 
need not observe all the requirements applying to public companies, 
examples being the rules relating to forming companies, passing 
resolutions, and audits. 
 
4.   REGISTRATION:  Registration must be granted by the Registrar of 
Companies and an IRD number assigned by the Inland Revenue Department.  
From July 1, 1994, new companies must have at least one share, at least 
one shareholder, and at least one director.  To become incorporated, an 
application for registration involves the following documents:   
 
 
 
 a signed application in the prescribed form; 
 
 signed consents relating to shareholders and directors; 
 
 a notice reserving the name of the proposed company (previously  
obtained from the Registrar); and 
 
 a certified copy of the company's constitution (if it is to have one;  
this is optional). 
 
 
     A certificate of incorporation is deemed conclusive evidence that a 
company has been duly incorporated under the Act. 
 
     Companies must maintain proper accounting records and prepare an 
annual report, including financial statements, for shareholders.  
Companies also must file an annual return at the Companies Office. 
 
5.   REGISTRATION of OVERSEAS COMPANIES:  As of July 1, 1994, Part XVIII 
of the new Act provides for companies incorporated outside New Zealand 
to carry on business in New Zealand.  An overseas company must not carry 
on business in New Zealand, unless the name of the overseas company has 
been reserved with the Registrar of Companies.  Within 10 days of 
commencing business in New Zealand, an overseas company must apply for 
registration under the Act.  Registration involves an application 
stating: 
 
 the name of the company; 
 
 the full names and addresses of directors; 
 
 the address of the principal place of business in New Zealand; 
 
 evidence of overseas incorporation and a copy of an instrument defining 
the constitution of the company; 
 
 notice of name approval; and 
 
 the name and address of a person who is authorized to accept service in 
New Zealand on behalf of the overseas company. 
 
     Overseas companies must file an annual return with the New Zealand 
Companies Office.  Further, under the Financial Reporting Act 1993, 
overseas companies are required to keep accounts relating to their New 
Zealand business, and to file financial statements at the Companies 
Office once a year.  The Registrar may accept financial statements 
prepared under the rules of the country of incorporation as complying 
with the New Zealand requirements. 
 
     Every overseas company must ensure that its full name and the name 
of the country in which it is incorporated are clearly stated in any 
communication sent by or on behalf of the company, and in any documents 
that evidence or create a legal obligation of the company. 
 
6.   OVERSEAS INVESTMENT COMMISSION:  (see CHAPTER VII, OPENNESS TO 
FOREIGN INVESTMENT). 
 
7.   REPATRIATION of CAPITAL and FOREIGN REMITTANCES:  Repatriation of 
overseas capital and capital gains is permitted.  It is the policy of 
the New Zealand Government to allow the remittance of profits, interest 
and dividends earned by overseas investors.  This policy applies to loan 
investment as well as to direct and portfolio investments.   
 
    The only impediment to repatriation of capital falls under the New 
Zealand Income Tax Amendment Act (No 3) 1993.  The Underlying Foreign 
Tax Credit regime allows a credit against the New Zealand company's 
foreign dividend withholding payment liability for tax paid by an 
affiliated overseas company on its profits.  To be eligible for the 
credit, the New Zealand recipient company must hold an interest in the 
paying company being:  (1) a 10 percent or greater income interest in a 
controlled foreign company, or (2) a 10 percent or greater voting 
interest in a foreign investment fund, the income of which is accounted 
for under the branch equivalent system.  Non-resident investors 
(individuals or businesses) who hold less than 10 percent of the shares 
of the recipient company receive, in addition to the cash dividend, an 
imputed tax credit based on a portion of the overseas tax payment by the 
affiliate.  However, no tax credit benefit is available for foreign 
investors who own more than 10 percent of the shares of the New Zealand 
Company. 
 
8.   SHELF COMPANIES and LEGAL ADVICE:  Shelf companies and specific 
legal advice relating to New Zealand incorporated companies are readily 
available in any of the New Zealand metropolitan areas.  (See part V 
under Need For Local Attorney.) 
 
SELLING FACTORS/TECHNIQUES:  Both sales presentations and problem 
solving techniques are used successfully in New Zealand as approaches to 
selling.  One-on-one discussions with potential buyers are the 
predominate method of selling capital intensive or service products to 
other businesses.  Telemarketing and mass media advertising are used 
most often by retailers to communicate to the public new products or 
purchasing opportunities.  
 
ADVERTISING AND TRADE PROMOTION:  Advertising is well developed in New 
Zealand and is used by a large cross section of the business and 
institutional community to inform the public about goods and services. 
At the end of March 1994, there were approximately 150 advertising 
agencies, most of which (122) were New Zealand owned, with the remainder 
(28) affiliated to multinationals by total or partial ownership. 
 
The largest share of advertising in New Zealand is handled by the 28 
daily newspapers.  Eight of these are morning newspapers and 20 are 
published in the evening.  Of the eight morning dailies, the one with 
the largest circulation is The New Zealand Herald, which is published in 
Auckland and has an audited net circulation of 238,851 copies daily.  
The other dailies have circulations ranging from 3,000 to about 100,000.  
Other major newspapers are The Dominion and the Evening Post 
(Wellington), The Waikato Times (Hamilton), The Press (Christchurch), 
and the Otago Daily Times (Dunedin). There are two national Sunday 
newspapers, the Sunday Star Times (circulation 183,701) and the Sunday 
News (circulation 121,122). 
 
Currently, two major companies own the majority of the country's daily 
papers.  The two major publishing groups are Independent Newspapers 
Limited (8 papers) and Wilson and Horton Limited (8).  These two firms 
account for 90% of the country's 1 million daily circulation. 
 
The leading business journal is The National Business Review 9 
(circulation 12,782).  It is published weekly by Liberty Holdings Ltd in 
Auckland.  Late in 1993, a second weekly financial journal called The 
Independent (circulation 9756) came on the market.  It is published by 
Pauanui Publishing Ltd in Auckland. 
 
There are over 2,300 magazines available in New Zealand on a regular 
basis.  Of this number, 58 are listed with the New Zealand Audit Bureau 
of Circulations as being either published in New Zealand or New Zealand 
editions.  Most local magazines (34) are published monthly, 11 are 
published on an alternate month basis, and six are weeklies.   
 
New Zealand is serviced nationally by three television stations and a 
pay-for-view vendor that presently offers five additional choices.  
Television New Zealand (TVNZ), the operator of two of the three (free) 
commercial channels, is a State Owned Enterprise (SOE) run independently 
from the government.  It claims to have almost 100 percent coverage in 
New Zealand.  TV3 Network Ltd (TV3) is New Zealand's privately owned 
commercial network and reaches about 96% of the population.  Sky 
Television, the pay-for-view operator, offers a 24 hour news (CNN and 
BBC) channel, a movie channel (HBO), a sports channel (ESPN), a family 
channel, and a documentary channel (Discovery) combined with local horse 
racing (Trackside). 
 
There are nine local community television stations and one small cable 
network near Wellington. Cable TV is also being trialed in Auckland. 
 
As at April 12 1994, 165 radio stations were broadcasting separate 
programs on a continuous basis. 122 of these stations were privately 
owned. The New Zealand Government has introduced a bill to sell 40 
commercial stations owned by Radio New Zealand, a state owned 
enterprise. The Bill has yet to be passed into law.  
 
There are two self regulatory bodies in New Zealand's advertising 
industry, the Advertising Standards Authority and the Advertising 
Standards Complaint Board.  Additionally, the Broadcasting Standards 
Authority (statutory) is responsible to radio and television advertising 
code and adjudication.   
 
PRICING PRODUCT:  There are no government price control regulations.  
Export prices on certain agricultural products are maintained by 
statutory marketing boards (see CHAPTER VI. under EXPORT CONTROLS). 
 
SALES SERVICE/CUSTOMER SUPPORT:  Sales service and customer support is a 
growing area of focus for New Zealand retailers and manufacturers.  
Historically, under the controlled economy of the 1950's and 1960's, the 
consumer did not have many choices or opportunities to speak out.  With 
the removal of import and export licenses and further movements to 
encourage competition in the marketplace, the buyer has become more 
demanding and sophisticated; a buyer's market exists.  The entrance of 
U.S. based retailers and franchises like McDonalds have received glowing 
reviews on the level of service. Also, as the population has become 
better travelled, expectations of product quality and service have 
increased.  Consequently, consumer pressure on the entire marketing 
chain also has increased. 
 
SELLING TO THE GOVERNMENT:  New Zealand has effectively removed all 
barriers to foreign firms bidding and winning procurement contracts.  
The Closer Economic Relationship (CER) with Australia allows Australian 
goods to be considered equal to New Zealand goods (see part VI, under 
Membership in Free Trade Arrangements).  This factor only comes into 
consideration when all bids are equal and the tenderer reviews "local 
content" value to finalize the purchase decision.  While there are no 
laws that require "local content" consideration, the New Zealand 
government has encouraged its and State Owned Enterprises (SOE) 
procurement officers to buy New Zealand made products when all other 
factors are equal. 
 
The New Zealand government has yet to sign the GATT Government 
Procurement Code.  Government departments and the SOE's must act as 
efficiently as possible within their limited budgets and may purchase 
from any source, if they believe it offers good products at a reasonable 
price.  The government believes that since purchasing decisions have 
been decentralized, open and transparent tendering are ensured and that 
its procurement policy is actually more liberal than that required by 
the GATT Government Procurement Code.  
 
Generally, American businesses have not registered any complaints about 
their dealing with the New Zealand government or its SOE's concerning 
the tendering of procurement opportunities. 
 
PROTECTING YOUR PRODUCT FROM IPR INFRINGEMENT:  New Zealand Intellectual 
Property Laws have been under review for a number of years. In January 
1995 some significant amendments were made to patent law with the 
introduction of the Patents Amendment Act 1994, to trade mark law with 
the Trade Marks Amendment Act 1994 and introduction of the Geographical 
Indications Act, and to copyright law with the introduction of the 
Copyright Act 1994 and the Layout Designs Act 1994. 
 
1.   PATENTS AND DESIGN:  The Patents Act 1953, as amended by the 
Patents Amendment Act 1994, and the Designs Act 1953, constitute the 
basic New Zealand legislation governing these forms of industrial 
property protection.   
 
     Patents are obtainable for "any manner of new manufacture", a 
phrase to which a wide interpretation is given.  Those who wish to 
protect an invention by a patent should arrange for a search of New 
Zealand Patent Office records to determine what has been done in the 
same field.  If the invention appears to be one which is novel and 
patentable, an application may be filed at the Patent Office, 
accompanied by either a provisional or complete specification describing 
the invention.  The documents must meet formal requirements, and a fee 
must accompany the application. 
 
     An application for a patent may be made in either of two ways:   
 
     (a)   the applicant may apply in the first instance with a 
provisional specification and then file a complete specification at a 
later date within 12 months or, with application for extension of time, 
within 15 months; or  
 
     (b)   the applicant may file a complete specification at the time 
of making the application. 
 
     The Paris Convention for the Protection of Industrial Property 
("Paris Union"), to which New Zealand is a party, provides that a person 
(or his/her personal representative or assignee) who has filed an 
application for a patent in one Paris Union country has the right, 
within 12 months from the date of the first application in the Paris 
Union country, to claim priority for a subsequent application in respect 
of the same invention in any other Paris Union country.  In New Zealand 
such a subsequent application must be accompanied by a complete 
specification, together with certified copies of the application filed 
abroad. 
 
     New Zealand is also a member of the Patent Co-operation Treaty 
(PCT) and can, therefore, be included as a designated country when 
making applications by this route. 
 
     An application with a complete specification is examined in the 
Patent Office to determine whether the invention meets the conditions 
for the grant of a patent.  For example, a complete specification must 
describe the invention and the method by which it is to be performed, 
disclose the best method for performing the invention which is known to 
the applicant and for which the applicant is entitled to claim 
protection, and have a claim or claims which define the scope of the 
invention.  The application also will be examined to determine whether 
it is novel in New Zealand at the date of priority.  If the application 
passes the examination stage, it is accepted and published in the Patent 
Office Journal.  Thereafter, the application is open for a period to 
opposition by any interested party.  If the opposition stage has passed 
successfully, the patent is granted for a 20-year term from the filing 
date of the complete specification.   
 
     A New Zealand patent is a limited monopoly granted by the Crown 
(New Zealand Government) to make, use, exercise, and vend an invention 
and its products throughout a 20-year period, with the proviso that it 
may be terminated in certain circumstances.  Those who infringe on 
patent rights are liable for damages and other penalties. 
 
     The New Zealand Patent Office does not make searches for members of 
the public (except trademark searches), but will assist inquirers 
wishing to search the registers or the collection of New Zealand and 
foreign patent specifications.  No search fees are charged.  The Patent 
Office has a complete record of all patents granted in New Zealand.  
There is also a comprehensive library of specifications from overseas 
countries.  Those not familiar with the practice of the Patent Office 
are advised to employ a patent attorney for searches and all work 
relating to patents.  The Patent Office will supply a list of attorneys 
upon request. 
 
     Inventions which are the subject of patent rights may be used only 
under license, normally obtained from the patentee.  The Patents Act, 
1953 gives protection against the abuse of patent rights, and compulsory 
licenses and other remedies are available. 
 
     Designs may be registered to obtain protection for the shape, 
configuration, pattern, or ornament applied to articles by an industrial 
process or means.  The system for searching the register of designs is 
similar to that for patents.  To register a design, an application must 
be made, supplemented by drawings or photographs of the design.  The 
convention priority period for designs is six months, in contrast with 
the 12 months for patents.  An application is examined and a search for 
novelty is made.  The term of registration is 5 years from the date of 
application, which may be extended to 15.  A design registration may be 
cancelled if found to be invalid for any reason. 
 
2.   TRADEMARKS:  The Trade Marks Act 1953, as amended by the Trade 
Marks Amendment Act 1994, provides for the registration, in respect of 
particular goods or services, of a sign or combination of signs, capable 
of being represented graphically and capable of distinguishing the goods 
or services of one person from those of another. A "sign" includes, but 
is not limited to, a device, brand, heading, label, ticket, name, 
signature, word, letter, numeral, color or any combination of these.  
Thus, a registrable trade mark may potentially include the shape of 
goods themselves, the shape of packaging, smells and sounds, if capable 
of graphical representation.  The appropriate classification of goods 
and services is determined according to the Nice Agreement on the 
International Classification of Goods and Services, although New Zealand 
is not yet a party to that agreement. 
     Registration may be permanent subject to payment of renewal fees.  
To obtain registration of a trade mark, it must have been used or 
proposed to be used.  A trade mark may be expunged from the register on 
the grounds of non-use. 
 
     A trade mark registration is infringed by the unauthorized use of 
the identical sign on any goods or services for which the sign is 
registered, or the unauthorized use of the identical or a similar sign 
on those goods or services, or similar goods or services, if such use 
would be likely to deceive or cause confusion. 
 
     As with patents and designs, there is a register of trade marks 
which is publicly available for searching.  It is important that this 
register be searched before a new trade mark is launched to ensure that 
there will be no infringement of any existing trade mark registration. 
 
     The registration of trade marks is not essential for protection, 
but those who use marks without registering them must rely for their 
protection on common law rights and remedies.  Definite statutory rights 
are given to registered proprietors.  Since the value of a well-known 
trade mark may be high, its registration is desirable. 
 
     The Geographical Indications Act 1994 establishes a registration 
system for the protection of descriptions or presentations used to 
indicate a geographical origin for specified goods.  Initially the only 
specified goods covered by the Act will be wines.   
 
3.   PLANT VARIETY RIGHTS: A system of protection for plant varieties, 
known as plant variety rights (PVR), is administered by the Plant 
Variety Rights Office in accordance with the Plant Variety Rights Act 
1987 ("the Act").  New Zealand is a member state of the International 
Union for the Protection of New Plant Varieties (UPOV), adhering to the 
1987 UPOV Convention. 
 
     Under the Act, the breeder of a plant variety may obtain a grant of 
PVR if the variety is new (it should not have been sold earlier than 
certain specified times before application is made), distinct, uniform 
and stable.  An application for a PVR must be made to the PVR Office 
following which an examination is carried out to determine whether the 
candidate variety meets prescribed criteria.  The examination normally 
involves a growing trial of the variety conducted in New Zealand.  
Notice of applications, grants and other matters concerning PVR, are 
published in the quarterly New Zealand Plant Variety Rights Journal. 
 
     A grant of a PVR gives the breeder exclusive rights of 
commercialization of the variety for 20 years, or 23 years in the case 
of woody plants.  Such a breeder is entitled to take court action 
against anyone infringing the PVR. 
 
4.   COPYRIGHT:  Copyright is now governed by the Copyright Act 1994.  
New Zealand adheres to the Rome version (but not the Brussels revision) 
of the Berne Copyright Convention, and is also a signatory to the 
Universal Copyright Convention.  These two treaties provide that 
citizens of member countries are afforded protection in respect of work 
that may be copyrighted. 
 
     Copyright may reside in any original literary, dramatic, musical or 
artistic work, sound recording, film, broadcast, cable program or 
typographical arrangement of published editions. Literary works include 
a table or compilation (which includes multimedia products and 
databases) and computer programs.  Artistic works include graphic works, 
photographs, models, sculptures or collages, architectural works and 
works of artistic craftsmanship.  Layout designs or integrated circuits 
are specifically excluded from the Copyright Act 1994 which provides a 
10 to 15-year term of copyright-style protection.  
 
     The Copyright Act 1994 specifies various circumstances in which 
reproduction of copyright material will not amount to an infringement, 
for example, if such material is used in fair dealing or for various 
research and educational purposes.  It also stipulates that reproduction 
of drawings included in patent specification or a registered design in 
relation to a patent or design that is no longer in effect will not 
amount to an infringement of copyright.  Further, copyright in an 
artistic work that has been industrially applied is limited to a term of 
16 years from the date of industrial application (25 years for works of 
artistic craftsman ship). The usual term of copyright (other than as 
indicated above) is the life of the author plus 50 years. 
 
     The Copyright Act 1994 also introduced to New Zealand law moral and 
performers' rights.  Moral rights include the right to be identified as 
the author or director of a work and the right to object to derogatory 
treatment of a work. 
 
5.   COMPUTER TECHNOLOGY:  Computer programs, databases and multimedia 
products are subject to copyright. Both computer hardware and software 
may now be patented. 
 
 
 
NEED FOR A LOCAL ATTORNEY:  The legal system in New Zealand has 
developed from British law.  Much of the law is codified, but English 
common law remains important in many areas.  The system of courts 
extends from the district courts through the High Court and Court of 
Appeal to the Privy Council in London.  The public receives protection 
under a Bill of Rights and may obtain information on request under the 
Official Information Act. 
 
It is recommended to use local attorneys when registering a company, 
closing a contract, hiring office space, or any other time one would 
normally contact an attorney in the normal course of business.  The 
US&FCS office in New Zealand maintains a list of solicitors and 
barristers for reference. 
 
 
 
 
 
CHAPTER V.    LEADING SECTORS FOR U.S. EXPORTS AND INVESTMENTS 
 
Best Prospects for non-Agricultural Goods & Services 
(USD millions, unless otherwise noted; Exchange rate USD/NZD in 1993 = 
1.81, 1994 = 1.63, 1995 = 1.54) 
 
1   -   Aircraft and Parts (AIR) 
 
A recent ISA on helicopter and helicopter parts was finalized in 1994.  
The study indicated that there was a tremendous opportunity for spare 
part manufacturers.  The majority of helicopter sales were imported used 
machines.  This utilization of previously owned equipment requires more 
maintenance.  World availability of spare parts has been constrained by 
a lack of suppliers. 
 
 
                                  1993      1994      1995 
A.  Total Market Size            516.6     649.4     786.8 
E.  Total Local Production        30.0      35.0      40.0 
F.  Total Exports                 24.4      28.6      32.1 
G.  Total Imports                511.0     643.0     778.9 
H.  Total Imports from U.S.      343.6     435.7     531.8 
 
     The Above Statistics are Unofficial Estimates 
 
2   -   Computers/Peripherals (CPT) 
 
The last ISA on this topic was published in 1992 and one is scheduled 
for this year.  Recent information on the sector has indicated that 
trading levels are much higher than the 1992 ISA estimates.  New 
Zealanders are typically early adapters and new technology is quickly 
accepted and utilized in system solutions. 
 
 
                                1993     1994      1995 
A.  Total Market Size          444.8    609.6     700.0 
B.  Total Local Production       N/A      N/A       N/A 
C.  Total Exports               51.6     60.0      75.0 
D.  Total Imports              393.2    549.6     625.0 
E.  Total Imports from U.S.    229.1    291.0     390.0 
 
     The Above Statistics are Unofficial Estimates 
 
 
3   -   Medical Equipment    (MED) 
 
In October 1994, an ISA was published on the surgical equipment sector.  
Products from the U.S. contribute to 25% of the import content in this 
segment.  The health care and emergency service sector is undergoing a 
fundamental change in how it is funded.  Hospitals and emergency service 
providers are encountering private sector competition.  This is 
resulting in the upgrading of facilities to attract both doctors and 
patients.  This upgrading offers many opportunities for American 
manufacturers and service providers. 
 
 
 
                                      1993     1994     1995 
A.  Total Market Size (est)          16.2     11.8     13.8 
B.  Total Local Production (est)        0        0        0 
C.  Total Exports                     2.0      1.3      1.3 
D.  Total Imports                    18.2     13.1     15.1 
E.  Total Imports from U.S.           5.4      3.3      4.0 
 
     The Above Statistics are Unofficial Estimates 
 
 
4   -   Telecommunications (TEL) 
 
The last ISA on a Telecommunications subsector was published in November 
1994.  Highlighted growth areas include the provision of services such 
as cellular phones, pagers, mobile radio, and equipment such as PABX and 
data transmission equipment and phones. 
 
 
                                  1993     1994     1995 
A.  Total Market Size            41.0     38.8     57.4 
B.  Total Local Production          0        0        0 
C.  Total Exports                24.0     28.6     33.6 
D.  Total Imports                65.0     67.4     91.0 
E.  Total Imports from U.S.      24.0     28.8     33.6 
 
     The Above Statistics are Unofficial Estimates 
 
5   -   Plastics (PMR) 
 
The ISA on Plastic Materials and Resigns published in April 1993 
suggests that the market is driven by price.  The growth in the U.S. 
import totals over the past two years reflect the devaluation of the US 
dollar in regards to the other supplying countries. 
 
 
                                   1993     1994      1995 
A.  Total Market Size             135.7    168.2     176.6 
B.  Total Local Production            0        0         0 
C.  Total Exports                   8.6      9.1      10.0 
D.  Total Imports                 144.3    177.3    1 86.6 
E.  Total Imports from U.S.        41.3     45.0      49.5 
 
     The Above Statistics are Unofficial Estimates 
 
6   -   Books and Periodicals (BOK) 
 
New Zealanders have historically been prolific readers.  This fact is 
further high lighted in an ISA published in October 1994.  Paperback 
publishing and printing costs in New Zealand are higher than in the U.S.  
The use of U.S. technologically and educationally based books continue 
to be a growth area. 
 
 
                                    1993     1994     1995 
A.  Total Market Size              107.7    111.0    114.3 
E.  Total Local Production          25.0     27.0     27.0 
F.  Total Exports                    6.9      7.5      6.0 
G.  Total Imports                   89.6     91.4     93.3 
H.  Total Imports from U.S.         21.5     22.0     22.5 
 
     The Above Statistics are Unofficial Estimates: 
 
7   -   Automotive Parts and Service Equipment (APS) 
 
An ISA on this sector was published in July 1994.  Imports of automotive 
parts and accessories market totaled $US 481 billion in 1993.  The U.S. 
market share was only 5.6% of which 85% was parts and the 15% 
accessories.  Truck (long haul) parts represent 70% of the total U.S. 
parts export volume.   
 
 
                                1993     1994     1995 
A.  Total Market Size          404.4    424.6    439.5 
B.  Total Local Production       0.2      0.2      0.2 
C.  Total Exports               76.9     71.1     71.1 
D.  Total Imports              481.2    495.5    510.4 
E.  Total Imports from U.S.     22.8     23.0     23.5 
 
     The Above Statistics are Unofficial Estimates 
 
 
Best Prospects for Agricultural Products 
 
 
N/A  -  Soybean Meal (tonnes)  -    0813100 
 
The domestic poultry and pork industries import all their soybean meal 
requirements, with the volume depending on the relative price of other 
protein substitutes.  With the growth in consumption of poultry and 
pork, the industries are requiring more feed inputs.  Also there is a 
greater interest developing from other livestock industries (dairy, 
beef, deer) in supplementary feeding, and consequently imports have 
increased.  Imports from the U.S. are moving with this trend, but with 
more marketing input, could make a dent in Australia's dominant market 
share. 
 
 
                                1993      1994      1995 
A.  Total Market Size         50,000    52,000    53,000 
B.  Total Local Production         0         0         0 
C.  Total Exports                  0         0         0 
D.  Total Imports             50,000    52,000    53,000 
E.  Total Imports from U.S.    8,510    10,500    12,000 
 
     The Above Statistics are Unofficial Estimates 
 
 
N/A  -  Fresh Fruit (apples & grapes, tonnes)  -  0574000, 0575100 
 
Note that the above table refers only to apples and grapes, the fruits 
projected to have the greatest growth prospects.  Currently grapes are 
the major import item, followed by citrus, and then apples.  Citrus 
volumes from the U.S. increased 25 percent in 1994 after a number of 
flat years, while U.S. grape imports increased 80 percent to record 
levels.  Specific import volumes for the above table are:  Grapes 
(6,700; 6,000; 6,500)  and Apples - 1,000; 1,400; 1,500 tonnes. 
 
The United States is the established dominant supplier for both 
commodities and, for grapes, has a very good reputation for superior 
quality. This has been assisted by the recent removal of a mandatory 
fumigation requirement, which has been replaced by offshore pre-shipment 
inspection.  Apple quality has been mixed in the past, and the cool 
chain will need some attention if US apples are to improve their 
standing.  The 1995 apple harvest was a high volume high quality crop in 
contrast with the 1994 harvest which was hit by hail just before 
picking.  This has resulted in a shortfall of processing fruit and 
consequent juice availability.  This could see apple juice concentrate 
being imported from the U.S. to cover the shortfall. a dent in 
Australia's dominant market share. 
 
 
                                  1993       1994      1995 
A.  Total Market Size           56,900     59,250    60,000 
B.  Total Local Production     449,000    518,000   515,000 
C.  Total Exports              216,000    318,000   310,000 
D.  Total Imports                7,700      7,400     8,000 
E.  Total Imports from U.S.      5,000      6,000     7,000 
 
    The Above Statistics are Unofficial Estimates 
 
 
N/A  -  Prepared Animal Feeds  -  N/A 
 
The declining production of pet foods from the contracting sheep and 
equine industries, along with the increased use of prepared feeds in the 
livestock industry, is contributing to growth in this sector.  Imports 
from the U.S. increased 88 percent in 1994, and prospects are for 
similar growth to occur this year and next.  Competition will come from 
Australia, but higher specification feeds from the U.S. have a solid 
reputation. 
 
 
                                      1993     1994     1995 
A.  Total Market Size                200.0    205.0    210.0 
B.  Total Local Production           195.0    193.0    190.0 
C.  Total Exports                     25.5      4.5      4.5 
D.  Total Imports                      9.5     16.5     24.5 
E.  Total Imports from U.S.            3.2      4.5      6.5 
 
     The Above Statistics are Unofficial Estimates 
 
 
Significant Investment Opportunities:  The GNZ has privatized the 
majority of its commercial assets.  Radio NZ, TVNZ, NZ Post, Forestry 
Corp, Landcorp, and the Auckland Airport are the most prominent 
government SOE's with investment potential.  Forestry, municipal 
utilities (build and operate), health care, tourism infrastructure are 
four segments which have recently gained much interest from foreign 
investors.   
 
The Government of the United States acknowledges the contribution that 
outward foreign direct investment makes to the U.S. economy.  U.S. 
foreign direct investment is increasingly viewed as a compliment or even 
a necessary component trade.  For example, roughly 60 percent of U.S. 
exports are sold by American firms that have operations abroad.  
Recognizing the benefits that U.S. outward investment brings to the U.S. 
economy, the Government of the United States undertakes initiatives, 
programs, investment treaty negotiations and business facilitation 
programs, that support U.S. investors.  
 
 
 
CHAPTER VI.    TRADE REGULATIONS AND STANDARDS 
 
 
TRADE BARRIERS, INCLUDING TARIFFS, NON-TARIFF BARRIERS AND IMPORT TAXES:  
Goods manufactured outside New Zealand (and Australia under CER), 
especially materials and machinery required by local manufacturers and 
farmers, are generally free of duty.  Concessions are granted by the New 
Zealand Ministry of Commerce for goods not available from New Zealand 
manufacturers. 
 
New Zealand is a contracting party to the General Agreement on Tariffs 
and Trade (GATT) and has granted preference on imports in a number of 
negotiations under GATT.  Between 1988 and 1992, a five-stage tariff 
reduction program cut most industrial and agricultural tariffs by half, 
with larger cuts in high tariff areas.  A further program for 1993 to 
1996 will cut 1992 tariff levels by approximately one-third, reducing 
most tariffs to the 0-14 percent range.  Motor vehicles, tires, and 
textiles-clothing-carpet and footwear will retain a relatively high 
tariff protection when the current reduction program is completed in 
July 1996.  Based on the current review, a tariff reduction program 
(which could reduce levels by one third by 2000) on these products must 
be in place before 1997.  
 
Alcoholic beverages (including beer, wine and spirits), tobacco products 
and some petroleum products are subject to excise duty.  Excise duty is 
paid on similar items that are domestically produced. 
 
With very few exceptions, goods imported into New Zealand are liable for 
Goods and Service Tax (GST).  This tax, currently set at 12.5 %, is 
payable on the sum of the Customs Value of the goods, plus any Customs 
duty payable thereon, plus freight and insurance costs incurred in 
transporting the goods to New Zealand. 
 
CUSTOMS VALUATION:  Duties on goods imported into New Zealand are 
usually calculated as a percentage of the cost of the goods f.o.b. (free 
on board).  In some cases, they are calculated on the basis of a charge 
on a specific unit of weight, volume, or other measurement ("specific" 
rate) and occasionally on the basis of a combination of ad valorem and 
specific rates.  Ad valorem duty is assessed on the f.o.b. value of the 
goods. 
 
The rate of duty payable is determined by the classification of the 
goods in the New Zealand Tariff which is based on the Harmonized 
Commodity Description and Coding system. 
 
The Customs Department in Wellington will give an advance ruling on 
goods that are intended to be shipped, provided a sufficient description 
of the goods is furnished (and, if requested, samples submitted) for it 
to determine the correct customs classification.  Such decisions are 
regarded as binding, but no responsibility for changes that may 
subsequently be made in the tariff rates is assumed by the customs 
authorities. 
 
Application for an advance ruling may be signed by the shipper in the 
United States, by the importer in New Zealand or by any other interested 
person.  Inquiries should be addressed to the New Zealand Customs 
Department, Wellington, New Zealand. 
 
IMPORT LICENSES:  Import licensing was abolished on July 1, 1992. 
 
EXPORT CONTROLS:  An extensive system of licensing of exports and export 
incentives and tax breaks for exporters was abolished in the mid-1980's.  
By statue, commodity marketing boards have monopoly marketing rights on 
exports of dairy products, apples, pears, and kiwifruit.  Other boards 
maintain licensing systems, but these tend to be unrestrictive. 
 
New Zealand participates in a variety of multilateral arrangements and 
agreements which control the export of strategic items, including 
missiles and missile components, nuclear and nuclear- related materials, 
chemicals and chemical equipment, biological agents and equipment, 
defense equipment and defense-related goods, as well as some industrial 
"dual use" items that could be used for military or civilian purposes.  
For these items, permission to export must be obtained from New Zealand 
Customs, which acts on the advice of the Ministry of Foreign Affairs and 
Trade. 
 
IMPORT/EXPORT DOCUMENTATION:  The New Zealand Customs Department 
requires that each original bill of lading or airway bill for imported 
goods be accompanied by an invoice.  Printed forms of the invoice may be 
purchased at commercial stationery stores located in major port cities.  
No consular visa or notarial service is required for the invoice. 
 
The GNZ has established a requirement that exporters' declarations must 
include a statement to the effect that any wooden or plywood packing 
case, crates, wooden containers, or cargo pallets destined for New 
Zealand have been inspected before shipment and found to be free from 
bark and visible signs of insect and fungal attack.  This declaration 
must accompany all bills of lading and other shipping documents. 
 
Items such as fruits, plants, seeds, and the like must be accompanied by 
certificates from the competent authorities in the country of origin to 
the effect that the items have been examined and have been found to be 
free of disease.  In the United States, such certificates are issued by 
the U.S. Department of Agriculture.  These certificates should be 
forwarded to the consignee in New Zealand, and should also accompany the 
consignment.  The Ministry of Agriculture may inspect the shipment on 
arrival, and if signs of insect infestation are present, order the 
consignment to be either fumigated of denied entry. 
 
TEMPORARY ENTRY:  New Zealand admits samples of negligible value duty 
free.  Small shipments of trade catalogs and price lists printed outside 
New Zealand and advertising products produced abroad are admitted duty 
free if they bear the name and address of the foreign manufacturer and 
are not designed to advertise the sale of those products by any company, 
firm or individual with a business established in New Zealand.  
Temporary, duty-free admission of advertising films is also permitted, 
provided the films relate to the product or equipment offered for sale 
and meet other specified conditions. 
 
Samples of commercial value may be imported temporarily under bond or 
deposit of the duty amount to which they are liable.  Such samples are 
subject to the same customs regulations and duties in New Zealand as are 
ordinary commercial shipments of the commodities represented.  Trade 
catalogs, price lists, posters, circulars, handbills, programs, 
calendars, play bills, and fashion plates other than those listed above 
are dutiable.  There is no provision for the prepayment of such duties 
in the United States.   
 
LABELING, MARKING REQUIREMENTS:  New Zealand prohibits the importation 
of all goods bearing false or deceiving trademarks.  It also prohibits 
the entry of any good of foreign manufacture that bears the name or 
trademark of a New Zealand manufacturer or trader, the name of a place 
in New Zealand, or words that would be likely to associate the goods 
with New Zealand unless the names or words are accompanied by a definite 
indication of the country of origin. 
 
There is no general requirement that the country of origin be indicated 
on all imported goods.  The country of origin must, however, be shown on 
footwear, clothing items, and dry-cell batteries.  If any goods are 
marked with the country of origin, such markings must be true, accurate, 
and not misleading. 
 
The Fair Trading Act 1986 is designed to ensure that goods are not 
incorrectly marked or advertised as to their nature, quality, or the 
place where they are manufactured or produced.  Very detailed 
regulations are in effect regarding the labels that must be attached to 
various prepared, blended, compounded, mixed or imitation foodstuffs.  
In general though, the food labeling requirements in the U.S. market 
exceed those of the New Zealand market.  Paints and colors containing 
lead, electrical appliances and equipment, footwear, drugs, toilet 
preparations, and food products must also be specially labeled.  Wool 
products, defined as any product containing 50 percent or more by weight 
of wool, must be marked to show, in English, a trade description of the 
main fabric in the product and the percentage by the weight of the wool 
in the product.  Regulations also provide that all packaged goods bear 
an indication of the net weight of the contents and specify how such 
weights are to be indicated for each commodity.  Note that all weights 
and measures should be quoted in metrics. 
 
Movie film must be marked on the outer package as "FILMS" in black 
letters not less than 2 inches high and with the name of the owner, 
distinguishing mark, or number.  There are detailed regulations covering 
the marking of dangerous goods. 
 
With the exception of movie film and dangerous goods, there are no 
regulations governing the marking of outside packing cases.   The 
consignee's mark, including post mark, should be present, and packages 
should be numbered unless the shipment is such that the contents of the 
package can readily be identified without numbers.  It is also 
advantageous to show net and gross weight on the outside packing cases. 
 
PROHIBITED IMPORTS:  Although a pervasive system of import licensing 
controls was abolished in the mid-1980's, New Zealand maintains controls 
on the importation of a variety of items, including firearms and other 
offensive weapons, explosives, controlled drugs, hazardous wastes, 
radioactive substances, pesticides, plants, animals, and animal and 
plant products.  Publications, films, audio recordings, and computer 
disks are restricted for objectionable material.  Some agricultural 
goods are restricted on phytosanitary grounds, with the main commodities 
affected being pork, poultry and egg products. Only cooked product in 
these categories are allowed entry.  New Zealand also enforces United 
Nations sanctions against Iraq and some areas of former Yugoslavia.  
Detailed information is available from New Zealand Customs. 
 
STANDARDS (e.g. ISO 9000 USAGE):  New Zealand Standards cover a wide 
variety of subjects, including design, safety, specifications of 
performance and quality of products.  Adoption of these Standards is 
generally voluntary, but can be made compulsory through a statutory 
reference.  Compliance with these Standards may be an important factor 
in sales promotion, for example, in the area of production certification 
('S' Mark). 
 
The accreditation authority for ISO 9000 certifying bodies in New 
Zealand is JAS-ANZ, the Joint Accreditation System - Australia and New 
Zealand, established in 1991 by a treaty between the two governments. 
 
New Zealand operates under the metric system of weights and measures. 
 
FREE TRADE ZONES/WAREHOUSES:  There is neither a free trade zone nor a 
free port in New Zealand. 
 
Goods may be entered for home consumption, for warehousing, for removal 
within New Zealand or for export.  The appropriate customs entry forms 
are completed by the importer or his agent from information contained in 
the invoice, and they are submitted to customs along with all shipping 
documents except the bill of lading.  New Zealand Customs allows 
importers a deferred payment plan whereby they can pay within 6-8 weeks 
of picking up the goods.  There are adequate provisions permitting an 
importer to enter goods on a sight entry, to be completed later, when 
full particulars for making a complete entry are known and can be 
supplied by the importer.  In such cases, a deposit adequate to cover 
the duty must be made. 
 
There are wharves approved by the New Zealand Customs for the discharge 
of overseas cargoes, and licensed examining places. 
 
Licensed examining places are approved by New Zealand Customs for the 
devanning of LCL (Less-than-container-loads) containerized cargo.  Those 
typically are containers holding goods for more than one importer. 
 
Once containers have been devanned, individual importers can then uplift 
their goods upon presentation of a Customs delivery order. 
 
Entry of all goods unshipped or to be unshipped at any port is to be 
made within 21 working days.  If the goods are not claimed and entries 
passed within two months after the 21 days have elapsed, duty becomes 
due and payable.  The goods at that time may be sold or otherwise 
disposed of by the port's Collector of Customs. 
 
Manufacturing Area licenses are issued for the manufacture of any goods 
specified in the Third Schedule to the Customs Act (e.g., beer, wine, 
spirits, cigarettes, cigars, motor spirits).  Items entered into these 
areas are not subject to tariffs.  Goods entered for home consumption 
from a licensed Manufacturing area are subject to duty at the rates 
prescribed in the Third Schedule of Customs Act "Excise Duties". 
 
Imported goods, including those removed from a warehouse, may be 
transhipped or reexported upon completion of the appropriate entry and 
under the security of a bond.  Customarily, such entries are passed by 
custom agents under the security of their general bond.   
SPECIAL IMPORT PROVISIONS:  New Zealand acted upon the recommendations 
of the United Nations Conference on Trade and Development (UNCTAD) that 
developed countries introduce "Generalized Systems of Preference" (GSP) 
in favor of developing nations.  Special developing country rates for 
over 100 countries were incorporated in the customs tariff from 1972.  
In 1984, least developed countries were granted further preference. 
 
Products from certain South Pacific countries enter duty free. 
 
Canadian imports have a separate tariff rate that is somewhat reduced 
from the standard rate. 
 
MEMBERSHIP IN FREE TRADE ARRANGEMENTS:  New Zealand has joined with 
Australia in the Closer Economic Relationship (CER), a free trade area, 
eliminating all tariffs between the two countries.  This is of great 
importance to New Zealand as Australia is its largest export market, and 
largest source of imports.  U.S. exporters and investors should be 
aware, however, that rules of origin under the CER do not permit 
products to enter Australia duty free from New Zealand unless the 
product is of at least fifty percent New Zealand origin, and the last 
manufacturing process was carried out in New Zealand.  In other words, a 
U.S. product imported into New Zealand, if reexported to Australia would 
face the normal tariff duty for a U.S. export to Australia.  In 1994/95, 
New Zealand was considering a proposed linkage of the CER with the ASEAN 
Free Trade Area (AFTA).  The proposed CER-AFTA link, while potentially 
very important, would have little immediate impact because AFTA still 
has high internal tariffs which are to be reduced over time.  (ASEAN, 
the Association of Southeast Asian Nations, consists of Brunei, 
Singapore, Malaysia, Indonesia, Thailand, and the Philippines.) 
 
 
 
CHAPTER VII.  INVESTMENT CLIMATE 
 
OPENNESS TO FOREIGN INVESTMENT:  New Zealand welcomes and encourages 
foreign investment without discrimination.  The Overseas Investment 
Regulations 1985 (as amended) require approval by the Overseas 
Investment Commission (OIC) for investments over NZD 10 million (approx. 
USD 6.5 million) or investments of any size in commercial fishing or 
rural land.  In practice, virtually all applications are approved.  
(Since 1989, out of 3000 applications, only three were disapproved.)  
The OIC comprises four members:  two from the private sector and two ex 
officio, one each from the Reserve Bank and the Ministry of Commerce.  
In assessing applications for foreign investment, the OIC considers the 
extent to which the proposal will promote New Zealand's economic growth 
and development.  Factors such as increased competition or efficiency, 
transfer of technology or skills, increased exports, and job creation 
are considered in the examination. 
 
The review of investments above NZD 10 million applies to greenfields 
investments, asset acquisitions, the acquisition of 25 percent or more 
of any class of shares or voting stock, or the issuance of shares by a 
New Zealand company to an "Overseas Person" when the issuer is an 
"Overseas Person" or will become one as a result of the share issue.  An 
"Overseas Person" is any non-resident company or person or a New Zealand 
company where "Overseas Person(s) control 25 percent or more of any 
class of shares or voting stock.  An "Overseas Person" may not hold a 
fishing quota without an exemption from the Director General of the 
Ministry of Agriculture and Fisheries.  Therefore, foreign investment in 
commercial fishing is generally limited to a maximum holding of 24.9 
percent.  There are no restrictions on the level of ownership of rural 
land, but the foreign purchaser is required to demonstrate that the 
purchase will be beneficial for New Zealand. 
 
In 1995, the government introduced amendments to the Overseas Investment 
Act to simplify investment in land.  By mid 1995, this had sparked 
considerable political opposition to increased foreign land ownership, 
which may alter the government's planned amendments to the Act. 
 
Very few government-owned enterprises remain to be privatized, primarily 
electrical transmission, television and radio broadcasting, and some 
forestry cutting rights.  The government has not discriminated against 
foreign interests, to the extent that the former government monopoly 
railroad and telephone systems are managed by American-owned companies, 
with large minority ownership shares. 
 
The government does not offer incentives to foreign investors.  A 
stable, low-inflation environment is viewed as the strongest incentive 
for investment that the government can provide.  Resident companies are 
taxed at a rate of 33 percent of income, while non-resident companies 
are taxed at a higher 38 percent of income derived from New Zealand.  
There is no capital gains tax.  New Zealand has double taxation 
agreements with 24 countries, including the United States. 
 
CONVERSION AND TRANSFER POLICIES:  There are no restrictions on the 
inflow or outflow of capital, and the currency is freely convertible.  
All capital transactions can be accomplished through normal commercial 
banking channels. 
 
EXPROPRIATION AND COMPENSATION:  Expropriation has not been an issue in 
New Zealand, and there are no outstanding cases. 
 
DISPUTE SETTLEMENT:  Investment disputes are extremely rare, and there 
have been no major disputes in recent years.  The mechanism for handling 
disputes is the judicial system.  New Zealand is a party to the 
Washington Convention on the Settlement of Investment Disputes.  It is 
not a member of the International Center for the Settlement of 
Investment Disputes (ICSID) or the New York Convention of 1958, and has 
no plans to become a member.  Property and contractual rights are 
enforced by the British style legal system.  The government does not 
interfere in the court system.  The highest appeals court is the Privy 
Council in London. 
 
PERFORMANCE REQUIREMENTS/INCENTIVES:  There are no performance 
requirements or incentives associated with foreign investment. 
 
RIGHT TO PRIVATE OWNERSHIP AND ESTABLISHMENT:  Aside from the 
requirement for OIC approval of foreign investments over NZD 10 million 
or in commercial fishing and rural land, there are no restrictions on 
the right to establish, own and operate business enterprises.  Since 
1984, the government has moved aggressively to reduce its involvement in 
economic activities. 
 
A number of government entities have been transformed to state-owned 
enterprises (SOEs), and several SOEs have been privatized.  Aside from 
the government equity holdings established at the time of formation, 
SOEs are provided no advantages in their competition with private 
entities.  In general, there has been no restriction on foreign 
purchasers in the privatization of assets.  However, in the sale of Air 
New Zealand, foreign ownership was restricted to 35 percent to protect 
its designation in international traffic as a national carrier.  The 
terms of the sale of Telecom New Zealand (the former government monopoly 
phone system) required its U.S. buyers to sell their holding down to 
49.9 percent within three years of the purchase. 
 
PROTECTION OF PROPERTY RIGHTS:  (see CHAPTER IV., PROTECTING YOUR 
PRODUCT FROM IPR INFRINGEMENT) 
 
REGULATORY SYSTEM:  LAWS AND PROCEDURES:  The Commerce Commission 
administers the Commerce Act 1986, which governs restrictive trade 
practices.  Generally, contracts, arrangements or understandings which 
have the purpose or are likely to have the effect of substantially 
lessening competition in a market, together with price fixing, are 
prohibited and unenforceable, unless authorized by the Commerce 
Commission.  Before giving its authority, the Commission must be 
satisfied that the public benefit would outweigh the lessening in 
competition.  The Commerce Commission may also prevent a merger or 
takeover which would result in the new company gaining a dominant 
position in the market.  The use of a dominant market position to 
restrict, prevent, hinder, deter or eliminate various specified types of 
competition is contrary to the provisions of the Act, although the 
enforcement or attempted enforcement of any right under or existing by 
virtue of any copyright, patent, protected plant variety, registered 
design or trademark is not necessarily an abuse of a dominant position.  
The use of resale price maintenance by suppliers is prohibited 
completely.  Advice should be obtained on the application of the Act to 
the setting up of exclusive distribution, selling and franchising 
arrangements in New Zealand. 
 
Reforms since 1984 have included deregulation as an objective.  The most 
striking examples are the financial and telecommunications sectors, but 
the effort has been broad-based. 
 
EFFICIENT CAPITAL MARKETS AND PORTFOLIO INVESTMENT:  Since the removal 
of controls on the financial sector in the mid-1980's, money market 
activity has grown rapidly, particularly with regard to:  foreign 
exchange trading; the development of a sizeable secondary market in 
government securities; the introduction of a range of new financial 
instruments, including forward contracts, options, and exchange rate 
futures; and the growing use of hedging devices to handle interest rate 
and exchange rate risks.  There are 18 registered banks, and access to 
the credit system is unrestricted.  The estimated total assets of the 
five largest banks is approximately USD 43 billion). 
 
The issuance of securities is regulated by the Securities Commission 
under the Securities Act of 1978 and amendments.  The Act requires 
prospectuses for public offerings of new securities and prescribes what 
information must be disclosed.  An amendment in 1988 provided civil 
remedies for loss or damages resulting from insider trading.  A number 
of New Zealand-listed firms also are traded in Australia, and Telecom 
and Fletcher Challenge have gained listings in New York. 
 
Legal, regulatory, and accounting systems are transparent.  Accounting 
is based on British and U.S. systems.  The New Zealand Society of 
Accountants has developed Statements of Standard Accounting Practice 
(SSAP) that are mandatory for its members.  All companies listed on the 
Stock Exchange must comply with the SSAP and issue annual reports and 
abbreviated half-yearly reports to shareholders.  In 1994, the Financial 
Reporting Act of 1993 came into effect, legally requiring firms to 
comply with financial accounting standards set out by an Accounting 
Standards Review Board established by the Act.  The mandatory standards 
vary depending on the type of firm involved. 
 
While small companies, not listed on the New Zealand Stock Exchange 
(NZSE) may include in their constitutions measures to restrict hostile 
takeovers by outside interests, domestic or foreign, the NZSE does not 
permit such measures by companies listed on the NZSE.  In mid 1995, the 
New Zealand Government was considering a code to regulate takeovers, 
including thresholds of ownership above which purchase of majority 
ownership would be required, and whether all sellers must be offered the 
same price by takeover buyers, regardless of the percent of ownership 
being sold.  Whatever the outcome of the possible new takeover code, it 
will likely be neutral regarding the nationality of buyer.  Existing 
takeover rules of the NZSE are also nationality-neutral. 
 
Foreign owned or controlled companies are not prevented from 
participating in industry standards-setting organizations. 
 
The primary fact of investment in New Zealand is that foreign investment 
is welcomed, encouraged, and prominent in the economy. 
 
POLITICAL VIOLENCE:  New Zealand is a stable western democracy.  There 
has been no significant political violence since the Maori wars in the 
mid 1800's. 
 
BILATERAL INVESTMENT AGREEMENTS:  New Zealand has an agreement on the 
promotion and protection of investment with China, and in 1992, signed a 
Trade and Investment Framework Agreement with the United States.  New 
Zealand adheres to the Organization for Economic Cooperation and 
Development (OECD) Code of Liberalization of Capital Movements and the 
OECD Code of Current Invisible Operations. 
 
OPIC AND OTHER INVESTMENT INSURANCE PROGRAMS:  As an OECD member 
country, New Zealand is not eligible for OPIC programs.  New Zealand 
does not intend to become a member of the Multilateral Investment 
Guarantee Agency. 
 
LABOR:  New Zealand's labor force of about 1.7 million is well educated 
and trained.  Unemployment which had risen rapidly, began to decline in 
early 1992, reaching 6.6 percent in early 1995.  Unemployment should 
continue to fall, but more gradually as economic growth slows in late 
1995.  By mid 1995, some shortages began to emerge among certain 
professions and higher skilled technical workers.  This was mostly due 
to training cutbacks during the preceding economic downturn. 
 
While unions have the right to organize and bargain collectively, the 
Employments Contracts Act of 1991 ended compulsory unionism.  The Act 
also prohibits strikes aimed at forcing companies to sign on to 
multicompany contracts, as well as sympathy strikes by workers not 
involved in a particular labor dispute.  Minimum wages and workplace 
safety are provided for under other laws.  Disputes are handled by an 
Employment Tribunal, and its decisions may be appealed in an Employment 
Court.  Overall, the labor movement has lost members under the new law, 
but some unions have grown, particularly through mergers.  Workdays lost 
to strikes have declined.  In some firms, the Act has engendered more 
cooperative and innovative labor-management relations, and enhanced 
labor productivity.  Labor law protects the workers from exploitation.  
 
FOREIGN TRADE ZONES/FREE PORTS:  New Zealand does not have any foreign 
trade zones or free ports. 
 
CAPITAL OUTFLOW POLICY:  The New Zealand Government places no 
restrictions on investment abroad by New Zealand citizens or companies.  
No incentives are offered for investing in developing countries.  
Taxation policies on foreign tax credits can in some cases inhibit the 
outflow of dividends (see CHAPTER IV., STEPS TO ESTABLISH AN OFFICE). 
 
FOREIGN DIRECT INVESTMENT STATISTICS:  The New Zealand Department of 
Statistics' latest data lists total foreign direct investment of NZD 
33.6 billion (USD 18.9 billion) at the end of March 1994, while New 
Zealand had direct investment abroad of NZD 9.5 billion (USD 5.3 
billion) at that time (see appendix D INVESTMENT Table 1). 
 
Foreign direct investment in New Zealand was equal to about 41 percent 
of GDP as of March 1994, and new investments equaled around 5.5 percent 
of GDP for the year ending March 1994. 
 
The U.S. Department of Commerce reported U.S. direct investment in New 
Zealand at USD 3.0 billion at the end of 1993.  In recent years, the 
sectors receiving the most investment from the United States were 
telecommunications, transportation, forestry, food processing, and 
electronic data processing.  Other sectors with significant U.S. 
investment include petroleum refining and distribution, automobile 
assembly, financial services and data processing equipment sales and 
service. 
 
Australia remains the largest investor in New Zealand, and Australian 
statistics show cumulative investment of USD 5.3 billion at the end of 
June 1990.  Australia's investment is broad-based, but is particularly 
strong in financial services.  The United States is second, with an 
estimated USD 3.25 billion in March 1995.  The United Kingdom ranks 
third as an investor, with USD 1.9 billion invested at the end of 1989.  
Japan comes fourth, with USD 0.9 billion of direct investment in March 
1991.  Investment from other Asian countries has increased in recent 
years, particularly in commercial real estate. 
 
Per Appendix D, table 2, the United States was the largest source of 
foreign direct investment in the year ending March 1994, at NZD 945 
million (USD 523 million), or 21 percent of total FDI in those twelve 
months. 
 
MAJOR FOREIGN INVESTORS:   
 
INVESTOR   INVESTMENT     YEAR 
 
UNITED STATES: 
 
H.J. Heinz    Food Processing (NZD 567 million)   1992 
 
Wisconsin Central,   New Zealand Rail (54 percent of   1993 
Berkshire Partners   a NZD 400 million investment) 
 
Ameritech and    Telecommunications(NZD 4.3 billion) 1990 
Bell Atlantic      1993 
 
American Airlines   Air New Zealand (5 percent) 1989 
 
Chiquita         Horticulture   1991 
 
Pitman Moore    Animal Vaccines   1991 
 
Morrison Knudsen   Construction   1991 
 
Commodore Inc.    Computer Hardware Distribution   1989 
 
Nu-Skin International    Skin Care Distribution   1993 
 
Kraft    Food Processing   1989 
 
Mars Effem Foods    Pet Foods   1993 
 
Fibre Form    Wood Products   1992 
 
International Paper    Carter Holt Harvey (51.1%)   1992 
     (NZD 2.2 billion)   1995 
 
ITT Rayonier    Forestry (NZD 366 million) 1992 
 
AMAX/ACM    Gold Mining    1991 
 
Cyprus Gold    Gold Mining    1989 
 
Borden International    Carton Packaging   1990 
 
EDS    Financial Data Center   1994 
       (approx. NZD 100 million) 
 
PAC Enterprises    Aluminum Cans   1991 
 
Sobel    Pharmaceuticals   1992 
 
Grantham, Mayo, Van    Investments   1991 
  Otterloo Fund 
 
Gulf Resources    Commercial Property   1991 
 
MCI    Telecommunications   1990 
 
Bell South    Telecommunications   1992 
 
Edenroc Holdings    Hotel   1992 
 
Hertz International    Car Rentals   1990 
 
Amax/ACM     Gold Mining    1991 
USA/Australia 
 
Caltex Oil/Boral Gas    LPG Production   1990 
USA/Australia 
 
JAPAN: 
 
Sumitomo Forestry    Forestry (more than NZD 100   1989 
       million)    1992 
 
Itoham Foods    Beef   1991 
 
Mitsui OSK Kogyokasha    Flower Growers   1992 
 
Canon    Business Equipment Distribution   1990 
 
Orix Leasing    Motor Vehicle Leasing   1990 
 
Asahi Chemical    Food Processing   1991 
 
Suntory    Food Processing   1990 
 
Innosho Woods/National    Wood Processing   1992 
House Industrial 
 
Juken Nissho    Forestry    1991 
 
Nissho Iwai/Juken     Forestry   1991 
Sangyo 
 
Oji Paper and C. Itoh    Forestry and Pulp Processing   1992 
 
Tachikawa Forest    Forestry    1990 
  Products Limited 
 
Japan Air Lines    Air New Zealand (five percent)   1989 
 
AUSTRALIA: 
 
Industrial Equity    Seeds   1989 
 
ANZ    Retail Banking   1989 
 
Commonwealth Bank    Retail Banking   1989 
 
National Australia    Retail Banking   1992 
      Bank 
 
Boral    Building/Construction   1989 
 
Burns Philp    Building Products   1990 
 
Pacific Dunlop    Flooring   1990 
 
Canon (Aust) Ltd    Electronics Distribution   1991 
 
Email    Appliance Distribution   1989 
 
Bain Refco    Financial Services   1989 
 
National Mutual Life    Investment Services   1991 
Assurance of Australia 
 
Ord Minnett    Stockbroking Services   1990 
 
Ord Westpac    Financial Services   1990 
 
Potter Partners    Stockbroking Services   1990 
 
Sydney Futures    Financial Services   1992 
   Exchange 
 
J B Were & Co    Stockbroking Services   1989 
 
Ray White Realty    Residential Real Estate   1992 
 
Allied Food Co    Bread   1991 
 
Amcor    Food   1990 
 
Mars    Food   1992 
 
MMI    Insurance   1992 
 
Adelaide Brighton    Building Products Manufacturing   1989 
    Cement 
 
Allbright & Wilson    Chemicals Manufacturing   1989 
 
BHP    Steel Manufacturing   1991 
 
Email    Appliance, Aluminum, Plastics   1989 
	         Manufacturing 
 
ICI Australia    Chemicals Manufacturing   1989 
 
McPherson    Metals Manufacturing   1989 
 
Metal Manufactures    Cable Manufacturing   1990 
 
Nutrimetics    Cosmetics Manufacturing   1992 
 
Tubemakers    Metals Manufacturing   1989 
 
Consolidated Press    Magazines   1991 
 
Hoyts    Cinemas   1992 
 
News Corp    Newspapers   1989 
 
North Broken Hill/    Ilmenite Mining   1989 
Peko Group 
 
Orion Resources    Gold Mining   1991 
 
Union Gold Mining    Gold Mining   1991 
 
Western Mining    Oil & Gas   1992 
 
Amcor    Carton Packaging   1989 
 
BTR Nylex    Packaging   1990 
 
Dancette    Printer   1992 
 
South Australia Brewing    Aluminium Cans   1991 
 
Spicers    Paper & Stationery   1992 
 
Action Holdings/Vox    Retail/Wholesale Chain   1992 
(Foodland Associated) 
 
Dick Smith    Retail Electronics   1992 
 
Spotless Catering    Linen Cleaning   1991 
 
QANTAS    Airline (Air New Zealand 20%)   1991 
 
UNITED KINGDOM: 
 
National Bank of New    Rural Banking   1992 
Zealand (Lloyds) 
 
Countrywide Bank     Retail Banking   1992 
(Bank of Scotland) 
 
General Accident    Insurance & Banking   1988 
 
Norwich    General Insurance   1989 
 
Prudential Life    Life Insurance   1989 
 
Sun Alliance    Life Insurance   1991 
 
Glaxo    Pharmaceuticals (NZD 14 million)   1992 
 
Budget International    Motor Vehicle   1990 
 
Stagecoach    Buses   1992 
 
SINGAPORE: 
 
CDL Hotels Inc    Investment Banking   1992 
 
SWITZERLAND: 
 
Nestle    Dog Food   1992 
 
CANADA: 
 
Canwest Global    Television   1991 
Communications/Westpac 
 
Bell Canada, MCI    Telecommunications (40%)   1990 
Canada/USA 
 
 
 
CHAPTER VIII.  TRADE AND PROJECT FINANCING 
 
BRIEF DESCRIPTION OF BANKING SYSTEM:  The banking system of New Zealand 
is comprised of the Reserve Bank of New Zealand (the central bank), nine 
settlement or clearing banks of which seven have a nationwide network of 
branches, a few trustee savings banks, and four investment merchant 
banking firms.  In addition, finance companies, insurance companies, and 
building societies are engaged in the capital investment business.  
Stock exchanges are located in five cities and engage in the trading of 
domestic and certain foreign securities.  Since the sale of the once 
state owned Bank of New Zealand to National Australia Bank, all but two 
of the clearing banks (see G list at end of this section) are foreign 
owned.  These banks undertake the customary business of receiving 
deposits, handling checks, granting advances (overdrafts), and buying 
and selling foreign exchange.  These banks also discount bills, but this 
is not a highly developed practice in New Zealand.  These banks, which 
operate primarily in the short and medium term credit sectors, maintain 
the usual liaison with banks in the major financial countries of the 
world. 
 
The Government of New Zealand's liberalization of the banking system has 
ended almost all restrictions on the number, activities and ownership of 
banks operating in New Zealand.  There are no limits on the number of 
licenses granted, and foreign-owned institutions have full equality with 
nationally based firms.  Banks operate on an "at your own risk" policy 
for both management and depositors.  Federal deposit insurance and 
regulatory functions are not administered by the Reserve Bank of New 
Zealand. 
 
The Reserve Bank grants a banking license to any institution that meets 
certain requirements.  New banks have to apply for a separate license 
for foreign exchange trading, but this poses no difficulty.  New banks 
can issue checks.  The nine clearing banks operate and own the country's 
sole check clearing system, Interchange & Settlement Ltd (ISL).  The 
automated clearing function is run by EDS (NZ) Ltd under contract to 
ISL.   Those setting up new banks are assured by the Government of New 
Zealand that it does not tolerate attempts to exclude them. 
 
Three American based financial institutions (Citibank, Bankers Trust, CS 
First Boston) are primarily involved with corporate finance, money 
market trading, and investment banking.  Only Citibank offers retail 
mortgage services.  A wholly owned affiliate of State Street Bank is the 
primary custodial bank in market. 
 
FOREIGN EXCHANGE CONTROLS AFFECTING TRADING:  There are no major 
controls on foreign exchange trading except for the separate license 
requirement stated earlier. 
 
GENERAL FINANCING AVAILABILITY:  The main sources of capital for 
financing imports or new development in New Zealand are undistributed 
profits, the share market, merchant banks, insurance companies, savings 
banks, finance companies (including hire-purchase companies), private 
sources, the investment by overseas companies in New Zealand branches 
and subsidiaries, and joint venture companies.  The New Zealand 
Government does not have a venture capital program nor does it support 
third party organizations as a financier of last resort.  Although there 
is a broad array of suppliers of capital, there still is a scarcity of 
resources for start-up organizations and other high risk ventures. 
 
HOW TO FINANCE EXPORTS/METHODS OF PAYMENTS:  Standard financial products 
are available in New Zealand to support import and export opportunities.  
Secured bank credit and trade finance vehicles (i.e., irrevocable letter 
of credit) are readily offered by local financial institutions.  Open 
account purchase agreements are quite common among long time trading 
partners.  Some New Zealand exporters have taken products in trade when 
dealing with cash poor countries such as the old Soviet bloc countries. 
 
TYPES OF AVAILABLE EXPORT FINANCING AND INSURANCE:  The U.S. Export 
Import Bank standard policies apply to United States firms selling to 
New Zealand entities.  New Zealand exporters can utilize the services of 
the New Zealand Export Guarantee Office for credit insurance along with 
other insurance services covering invisible exports, tenders and 
guarantees. 
 
PROJECT FINANCING AVAILABLE (Including Lending From Multilateral 
Institutions And Types of Projects):  Project financing in New Zealand 
has historically been offered by vendors as a part of the total project 
package, or by merchant bankers as a member of a consortium project.  
Multilateral institutions and development banks do not lend into New 
Zealand since it is not considered a developing country by any standard. 
 
LIST OF BANKS WITH CORRESPONDENT U.S. BANKING ARRANGEMENTS: 
 
1.   Bank of New Zealand   NAB New York 
2.   Westpac Banking Corp Ltd   Westpac New York 
3.   ANZ Banking Group (NZ) Ltd   ANZ New York 
4.   National Bank of NZ Ltd   Bank of America 
5.   ASB Bank Limited   ABS New York 
6.   Country Wide   Bank of New York 
7.   Trust Bank   Citibank 
8.   Citibank N.A.   Citibank N.A. 
9.   Bankers Trust (NZ) Ltd   Bankers Trust 
10.  CS First Boston (NZ) Ltd   CS First Boston 
 
 
CHAPTER IX.   BUSINESS TRAVEL 
 
BUSINESS CUSTOMS:  Business customs practiced in the United States will 
transfer well in New Zealand.  It is common practice to make and keep 
appointments.  Corporate officers to the most senior level are usually 
reachable and open to business discussions.   
 
TRAVEL ADVISORY SERVICES AND VISAS:  Normal commercial travel agency 
assistance is appropriate for travel and hotel arrangements while 
traveling in New Zealand.  The United States and New Zealand enjoy a 
visa waiver pilot program allowing travel, without a visa, for stays up 
to 90 days.  For this program, possession of a return or onward ticket 
is required.  All visitors may apply for an extension of stay for up to 
12 months.  A valid passport with an expiration date at least three 
months beyond the date of departure is also required.  The program 
allows for one to work but not get paid during the stay. 
 
The Business Immigration Policy (BIP) focuses on selection of 
appropriate people rather than evaluation of business proposals.  
Applicants must demonstrate that they have the background, ability, 
skills, and investment capital for their proposed business venture.  For 
longer stay, the New Zealand Embassy or Consulate should be contacted 
for information pertaining to worker's and permanent residency permits.  
 
HOLIDAYS: 
     JAN  2, 1995   JAN  1, 1996   New Year's Day Observed 
     JAN  3, 1995   JAN  2, 1996   New Year Holiday Observed 
     JAN 23, 1995   JAN 22, 1996   Wellington Anniversary 
                                   Day (Wellington only) 
     JAN 30, 1995   JAN 29, 1996   Auckland Anniversary Day 
                                   (Auckland only) 
     FEB  6, 1995   FEB  6, 1996   Waitangi Day 
     APR 14, 1995   APR  5, 1996   Good Friday 
     APR 17, 1995   APR  8, 1996   Easter Monday 
     APR 25, 1995   APR 25, 1996   ANZAC Day 
     JUN  5, 1995   JUN  3, 1996   Queen's Birthday 
     OCT 23, 1995   OCT 28, 1996   Labor Day 
     NOV  6, 1995   NOV  4  1996   Marlborough Anniversary 
                                   (Blenheim only) 
     NOV 10, 1995   NOV 15, 1996   Canterbury Anniversary 
                                   (Christchurch only) 
     DEC 25, 1995   DEC 25, 1996   Christmas Day Observed 
     DEC 26, 1995   DEC 26, 1996   Boxing Day Observed 
 
BUSINESS INFRASTRUCTURE (Transportation, Language, Communications, 
Housing, Health, Food):  Travelling in New Zealand is as easy as 
traveling in the U.S.  Car transportation (rental, taxi, purchase) is 
problem free, excluding the issue of driving on the left hand side of 
the road.  Airplane service is available between Wellington and Auckland 
on a hourly basis with less frequent service to smaller towns. 
 
ACCOMMODATIONS:  Hotel and restaurants are abundant and for the most 
part economically priced.  Food and water are handled in a sanitary 
manner.  Wide choices of restaurants from fast food to upscale 
environments and from American to Asian cuisine are readily available in 
the urban centers.  Hotel accommodation can be spartan in rural regions, 
but upscale and mid-range accommodations are available in the 
metropolitan areas.  New Zealand is known for its designation sports 
lodges and has a very wide network of Bed & Breakfast and Farmstay inns. 
 
MEDICAL SERVICES:  The New Zealand health system consists of public, 
private and voluntary sectors that interact to provide and fund health 
care.  The public sector provides free treatment at hospitals for 
emergency and major problems, including maternity and geriatric care and 
free dental treatment for those under 18 years of age.  Because public 
hospital waiting lists have increased, there is greater interest in 
private medical insurance.  Therefore, private hospital care is becoming 
a more important player in the system.  It is recommended that coverage 
is obtained before entering the country to ensure a safety net. 
 
TELEPHONES AND FACSIMILE SERVICES:  New Zealand's telephone line density 
ratio is slightly over 49 lines per 100 people which is comparable to 
the U.S. and European ratios.  Its switch gear and line quality is more 
than satisfactory for facsimile transmission.  The country supports many 
long distance billing services (Telecom, MCI, AT&T, Sprint, and more).  
There are currently two cellular networks, BellSouth and Telecom.  
Rental services are available on both for visitors. 
 
CLIMATE:  Weather is changeable, typically with short periods of a few 
days of settled or unsettled weather.  Due to the proximity to the 
ocean, the climate is temperate.  The seasons are reversed from the 
northern hemisphere with summer weather during the November to March 
period.  Temperature extremes are mainly confined to places east of the 
main ranges.  
 
 
 
CHAPTER X.   APPENDIX 
 
APPENDIX A 
 
      COUNTRY DATA 
 
POPULATION:    3,592,000 est. on March 31, 1995.  
    Average Age:   34.50 years 
    Under 15:      23.19 % 
     15-64:        65.12 % 
    Over 65:       11.69 % 
    North Island:  74.5  % 
    South Island:  25.5  % 
 
The population of the larger urban regions in New Zealand are: 
     Auckland:   929,300 
     Hamilton:   153,800 
     Napier-Hastings:   111,700 
     Wellington:        329,000 
     Christchurch:      318,100 
     Dunedin:           112,400 
 
POPULATION GROWTH RATE:   1.42 percent for the year ending March 31, 
1995. 
 
RELIGIONS:   Anglican:        22 % 
             Presbyterian:    16 % 
             Roman Catholic:  15 % 
          Others:   20 % 
          None:     20 % 
 
GOVERNMENT SYSTEM:   Parliamentary with no formal, written constitution. 
   Executive:   The British Monarch, represented by a Governor General, 
is the chief of state.  The New Zealand Prime Minister is the head of 
government and heads the cabinet. 
   Legislative:   One-house Parliament. 
   Judicial:   Three levels:  District Courts, the High Court, and the 
Court of Appeals, with further appeal possible to the Privy Council in 
London. 
 
LANGUAGES:     English and Maori.  Literacy is 99 percent. 
 
WORK WEEK:     Monday-Friday, with some retail outlets open on Saturday 
and Sunday. 
 
Sources:     Statistics New Zealand and American Embassy projections 
 
 
 
APPENDIX B 
 
 
     DOMESTIC ECONOMY 
 
      (in millions of U.S. Dollars unless noted) 
 
YEAR ENDING MARCH 31,   1994   1995   1996  
                 Estimate 
GDP in current USD   44,775    54,038    60,242  
Real GDP Growth Rate, % change    4.9       5.6   2.7  
GDP per Capita, current USD    12,642    15,044   16,536  
Govt. Spending as % GDP, June years 36.3   34.7     34.5 
Inflation:  Consumer Price Index 
  percent change    1.3    4.0    2.4  
Unemployment (percent)     9.1    6.6    6.0  
Foreign Exchange Reserves       3,886    3,962   4,710  
Average Exchange Rate  
  for Year (X = U.S. $1.00)    1.81   1.63   1.54  
Foreign Debt    40,664   43,896   42,107  
Debt Service Ratio:  Principal & 
 Interest Payments/Foreign Income    47.7   42.4   38.7  
 
 
 
     APPENDIX C 
 
     NEW ZEALAND TRADE STATISTICS 
 
      (in millions of U.S. Dollars unless noted) 
 
YEAR ENDING MARCH 31,   1994   1995   1996  
              Estimate 
 
Exports (F.O.B.)    10,882   12,873   13,670  
Imports (C.I.F.)    10,007   12,694   14,090  
U.S. exports to New Zealand (C.I.F)    1,809   2,384   2,500  
U.S. imports from New Zealand  
(F.O.B.)    1,235   1,398   1,495  
U.S. Share of N.Z. imports (%)    18.1   18.8   17.7  
 
 
 
     APPENDIX D 
 
     INVESTMENT 
 
     Table 1 
 
     NEW ZEALAND'S INTERNATIONAL INVESTMENT POSITION 
     NZD million 
 
    Mar 90   Mar 91   Mar 92   Mar 93   Mar 94 
 
FOREIGN INVESTMENT IN NEW ZEALAND 
 
Direct Investment  
  Equity    12,293   13,294   17,750   21,035   26,494  
  Net Borrowing    1,427   5,055   4,993    6,775   7,140  
    Borrowing   2,809   7,374   6,519   8,492   8,949  
    Lending  (1,382)   (2,318)   (1,526)   (1,716)   (1,809) 
 
Subtotal    13,720   18,349   22,743   27,810   33,634  
 
Portfolio and Other Investment 
  Equity    1,561   1,766   850   2,483     1,532  
  Borrowing     45,202   48,242  50,964   51,166   54,185  
 
Subtotal    46,763   50,008   51,814   53,649   55,717  
 
TOTAL    60,484   68,357   74,558   81,460   89,350  
 
NEW ZEALAND INVESTMENT ABROAD 
 
Direct Investment 
  Equity    7,585   13,108    14,323    14,246    14,680  
Net Lending    (1,936)   (2,959)   (2,817)   (6,221)  (5,205) 
    Lending      3,281     3,189     3,789     1,861    1,340 
    Borrowing  (5,217)   (6,148)   (6,606)   (8,083)  (6,545) 
 
Subtotal    5,649    10,149    11,506    8,025    9,475  
 
Portfolio and Other Investment 
  Equity       248      461      918    1,138    1,848  
  Lending    3,247    3,680    4,069    3,592    5,873  
  Offl Resrve Assets  6,612    6,608    5,789    6,171   6,909  
 
Subtotal     9,107   10,749   10,776   10,901   14,630  
 
TOTAL       14,756   20,897   22,283   18,926   24,106  
 
NET POSITION  (45,728)  (47,460)  (52,274)   (62,534)   
         (65,245) 
 
Sources:  Statistics New Zealand 
 
 
 
     COUNTRY DATA 
     Continued 
 
     FOREIGN DIRECT INVESTMENT FLOWS, NZD million 
 
FDI into NZ, Year Ended March 31,   1992   1993   1994  
 
EQUITY CAPITAL    1,795    1,953   1,821  
from:  U.K.    132   360   371  
       Australia    637   1,016   (208) 
       United States    507   (14)   954  
       Canada    85   334   393  
       Japan    50   36   20  
       Other European Union    19   (14)   (32) 
       Other OECD    (2)   2  
       Other Asia and Oceana    366   234   309  
       Latin America         1   10  
       Other                 2  
 
UNREMITTED EARNINGS (Note I)    494   916   2,107  
from:  U.K.    301    6    395  
       Australia     72    534   400  
       United States        76    93   286  
       Canada      (39)     20  
       Japan       (73)   (37)   (10) 
       Other European Union      (10)   (73)   61  
       Other OECD    52    16      43   Other Asia and  
                                    Oceana   122   40    41  
       Latin America    (5)   1   (3) 
       Other        (3)       2  
 
OTHER LONG TERM CAPITAL (Note I)    (1,199)   924   346  
from:  U.K.    222   331   (446) 
       Australia     (28)   851   110  
       United States    (1,464)   (205)   (224) 
       Canada    8    (6) 
       Japan    (6)  (36)   5 
       Other European Union    12   3   810  
       Other OECD    14   (21)   7  
       Other Asia and Oceana    35   7   153  
       Latin America        10    (68) 
       Other 
 
SHORT TERM CAPITAL (Note I)    937   613   175  
from:  U.K.    106   (64)   45  
       Australia      199  725   334  
       United States   46  (36)  (71) 
       Canada (15)   (22) (182) 
       Japan     40   (8)   27  
       Other European Union    146   (4)   (29) 
       Other OECD      17  (22)  4  
       Other Asia and Oceana   371   42   58  
       Latin America   32   (1)   (6) 
       Other    (6)     2   (4) 
 
 
 
 
 
 
     COUNTRY DATA 
     Continued 
 
FDI into NZ, Year Ended March 31,   1992   1993   1994  
 
TOTAL INVESTMENT CHANGE (Note I)   2,026   4,405   4,449  
from:  U.K.    761   634     364  
       Australia     879   3,127   636  
       United States       (835)   161   945  
       Canada    39   305    231  
       Japan     11  (46)     42  
       Other European Union  167   (89)   809  
       Other OECD      81   (28)     56  
       Other Asia and Oceana        894   323   561  
       Latin America   37  (67) 
       Other    (9)     3  
 
EQUITY CAPITAL (Note I)    818   1,320   2,607  
to:    U.K.    (126)   70   (168) 
       Australia      723   1,170   918  
       United States   73       1  (21) 
       Canada   146     2   2,351  
       Japan    1       3       3  
       Other European Union    (5)   1 
       Other OECD 
       Other Asia and Oceana    8   (563)   83  
       Latin America  (1)     635   (559) 
       Other    1  
 
UNREMITTED EARNINGS (Note I)    (143)   (204)   561  
to:    U.K.    (7)   (125)   (62) 
       Australia     (128)   (11)   266  
       United States  (82)   (88)   (38) 
       Canada        (122)  (309)  (452) 
       Japan   (2)       3      1  
       Other European Union  (26)    101   10  
       Other OECD 
       Other Asia and Oceana   48  (210)  311  
       Latin America   177    (7)    24  
       Other    2        4  
 
OTHER LONG TERM CAPITAL (Note I)    (893)    (2,802)    703  
to:    U.K.    (11)     2          5  
       Australia    (319)    (1,028)    22  
       United States   12        (1)     2  
       Canada    6    (2)        (1) 
       Japan   (1) 
       Other European Union      258   242    1,191  
       Other OECD 
       Other Asia and Oceana (1,444)        (1,916)   71  
       Latin America 605       (101)          (586) 
       Other 
 
 
 
SHORT TERM CAPITAL (Note I)    945    (408)    (169) 
to:    U.K.    (29)   11    (18) 
       Australia      30   (384)    (55) 
       United States  39     (2)    (15) 
       Canada    5  (10)     (3) 
       Japan    4)    17    (39) 
       Other European Union  611    252    (293) 
       Other OECD      1     (1) 
       Other Asia and Oceana   8    (12)    231  
       Latin America 285   (279)      18  
       Other   (2)   (1)       8  
 
TOTAL INVESTMENT CHANGE (Note I)    728    (2,093)    3,702 
to:    U.K.    (174)    (42)      (244) 
       Australia         305      (253)    1,151  
       United States      42       (89)     (73) 
       Canada    36    (318)      1,894  
       Japan     (6)      24       (35) 
       Other European Union         838    596    907  
       Other OECD    1    (1) 
       Other Asia and Oceana    (1,379)    (2,701)    715  
       Latin America   1,067        248    (1,102) 
       Other     (2)       2         12  
 
Note I:  Totals are later data than individual country data and 
therefore differ from the sums of the country data.  Individual country 
data don't sum to the totals.  Because individual private companies have 
different "balance dates", a balance date adjustment has been made in 
the "unremitted earnings" totals, and is reflected in "total investment 
change".  This adjustment has not been made for individual country data 
so the "unremitted earnings" country figures do not sum to the 
"unremitted earnings" totals. 
 
Sources:  Statistics New Zealand 
 
 
 
 
     APPENDIX E 
 
 
     U.S. AND NEW ZEALAND CONTACTS 
 
     NEW ZEALAND GOVERNMENT DEPARTMENTS, CORPORATIONS, AND STATE-OWNED 
ENTERPRISES 
 
Agriculture and Fisheries, Ministry of 
Ph: 64 (4) 472-0367;  Fax: 64 (4) 472-9071/474-4244 
Box 2526, Wellington. 
Director-General: Dr. Russ Ballard 
 
Airways Corporation of New Zealand 
Ph: 64 (4) 471-1888;  Fax: 64 (4) 471-0395 
Box 294, Wellington. 
CEO: P. Proulx 
 
Civil Defence, Ministry of 
Ph: 64 (4) 473 7363;  Fax: 64 (4) 473-7369 
Box 5010, Wellington. 
Director: P.N. Officer 
 
Coal Corporation of New Zealand Ltd 
Ph: 64 (4) 474-3600;  Fax: 64 (4) 474-3601 
Box 439, Wellington. 
Chief Executive: G. Kay 
 
Commerce Commission 
Ph: 64 (4) 471-0180;  Fax: 64 (4) 471-0771 
Box 2351, Wellington. 
Chairman: Dr. S. Lojkine 
 
Commerce, Ministry of 
Ph: 64 (4) 472-0030;  Fax: 64 (4) 473-4638 
Box 1473, Wellington. 
Secretary: John Belgrave 
 
Customs Department 
Ph: 64 (4) 473-6099;  Fax: 64 (4) 473-7370 
Box 2218, Wellington. 
Comptroller: G. W. Ludlow 
 
Defence, Ministry of 
Ph: 64 (4) 496-0999;  Fax: 64 (4) 496-0859 
PO Box 5347, Wellington. 
Secretary of Defense: Mr G. Hensley 
 
Electricity Corporation of New Zealand 
Ph: 64 (4) 472-3550;  Fax: 64 (4) 473-3668 
Box 930, Wellington. 
Chief Executive: D. Frow 
 
Health, Ministry of 
Ph: 64 (4) 496-2000;  Fax: 64 (4) 496-2340 
Box 5013, Wellington. 
Director-General: C. Lovelace 
 
New Zealand Police (National Headquarters) 
Ph: 64 (4) 474-9499;  Fax: 64 (4) 474-9446 
PO Box 3017, Wellington. 
Commissioner: R.N. Macdonald 
 
Statistics New Zealand 
Ph: 64 (4) 495-4600;  Fax: 64 (4) 472-9135 
PO Box 2922, Wellington. 
Government Statistician: L.W. Cook 
 
 
NEW ZEALAND AGRICULTURAL COMMODITY BOARDS 
 
Full Export Monopoly Boards: 
 
Apple and Pear Marketing Board 
Ph: 64 (4) 473-1420;  Fax: 64 (4) 472-2980 
PO Box 3328, Wellington 
Chief Executive: Joe Pope 
 
NZ Dairy Board 
Ph: 64 (4) 471-8300;  Fax: 64 (4) 472-3691 
PO Box 417, Wellington 
Chief Executive: Warren Larsen 
 
NZ Kiwifruit Marketing Board 
Ph: 64 (9) 366-1200;  Fax: 64 (9) 366-1208 
PO Box 9906, Auckland 
Executive Director: Eric Henry 
 
Non-Marketing Commodity Boards 
 
NZ Meat Producers Board 
Ph: 64 (4) 473-9150;  Fax: 64 (4) 472-3172 
PO Box 121, Wellington 
Chief Executive: Warwick Bishop 
 
NZ Wool Board 
Ph: 64 (4) 472-6888;  Fax: 64 (4) 473-7872 
PO Box 3225, Wellington 
Chief Executive: Grant Sinclair 
 
Horticulture Export Authority 
Ph: 64 (4) 471-0451;  Fax: 64 (4) 471-2474 
PO Box 1417, Wellington 
General Manager: Sally Gardiner 
 
NEW ZEALAND CHAMBERS OF COMMERCE 
 
New Zealand Chamber of Commerce 
Ph:  64 (4) 472-3376;  Fax: 64 (4) 471-7161 
Box 11-043, Manners Street, Wellington. 
Chief Executive:  Elizabeth Griffin 
 
 
 
 
     APPENDIX F 
 
     MARKET RESEARCH  
 
1.   LIST OF AVAILABLE AND UPCOMING DOC/ISAS           
         Published   Proposed 
     Drugs & Pharmaceutical     8/89    9/95 
     Security Equipment    9/89 
     Plumbing Supplies    7/90 
     Franchising                                7/90       8/96 
     Financial Services   9/91 
     Metalworking Machinery    9/91 
     Personal Computers                         4/92       9/96 
     Computer Software                          4/92       9/96 
     Food Processing & Packaging Equipment      9/92      11/95 
     Process Control and Instrumentation       12/92      10/95 
     Textile Fabric    4/93 
     Plastic Materials & Resins                 4/93       4/96 
     Cosmetics and Toiletries    7/93 
     Fashion Apparel    7/93 
     Paper & Paperboard    11/93 
     Sporting Goods    2/94 
     Helicopters & Spare Parts    3/94 
     Automotive Parts & Accessories    7/94 
     Building Products   6/94 
     Books                                     10/94 
     Telecommunications                        11/94 
     Medical Products (Surgical)   2/95 
     Pollution Control Equipment (Wastewater 
        Treatment Equipment)                    3/95 
     Agricultural Chemicals (Plant Protection)  4/95 
     Forestry Equipment                                    7/95 
     Energy (Electricity Generation Equip)                 7/95 
     Tools / hand power                                   12/95 
     Toys                                                  2/96 
     Machine Tools                                         4/96 
     Footware                                              4/96 
     Electronic Components                                 6/96 
     Aviation                                              8/96 
 
 
2.  LIST OF USDA/FAS/COMMODITY REPORTS AND MARKET BRIEFS 
 
     Annual Marketing Plan - Info Report   Jul 15 
     Livestock Annual                      Aug 1 
     Deciduous Fruit Semi-Annual           Sep 9 
     Agricultural Situation                Sep 30 
     Forestry Annual                       Oct 1 
     Dairy Annual                          Nov 30 
     Deciduous Fruit Annual                Dec 30 
     Kiwifruit Annual                      Jan 15 
     Livestock Semi-Annual                 Feb 1 
     Seeds Annual                          Apr 1 
     Dairy Semi-Annual                     May 15 
 
3.   FCS reports are available on the National Trade Data Bank.   
     FAS reports are available from Reports Office/USDA/FAS, Washington 
D.C. 20250. 
 
 
 
 
     APPENDIX G 
 
 
     TRADE EVENT SCHEDULE  
 
 
1.  MAJOR EXHIBITIONS - NEW ZEALAND PRIVATE SECTOR SPONSORED 
 
SCT   DATE   EXHIBITION, LOCATION 
 
      1995 
 
GFT   Oct 1-3   Christmas Stocking Fair '95, Auckland 
FUR   Oct 13-15  NZ Home Show '95, Christchurch 
BUS   Oct 31-Nov 2   Business World '95, Auckland 
APS   Nov 9-12   NZ Motorshow '95, Auckland 
CPT   Nov 24-26   NZ Home & Small Office Computer Show, Auckland 
 
     1996 
 
LGE   Mar 5-7   Hort-Tech Expo '96, Auckland 
GCG   Mar 5-11   Otago House & Garden Show '96, Duendin 
APP   Mar 10-12   Fashion & Lifestyle Expo '96 
GFT   Mar 17-19   Autumn Gift Fair '96, Auckland 
HTL   Mar 17-18   Interhost - Foodservice '96, Christchurch 
TRA   Mar 22-24   Breakaway '96, Auckland 
TRA   Mar 29-31   Breakaway '96, Christchurch 
CPT   Apr 17-19   Computerworld Expo '96, Auckland 
FUR   May 3-5   Ideal Home Living '96, Auckland 
GIE   May 13-16   EMEX '96, Auckland 
FUR   May 21-27   NZ Home Interiors '96, Wellington 
GFT   May 24-26   Stitches & Craft '96, Auckland 
PRT   May 29-Jun 4   NZ Boat Show '96, Auckland 
AGM   Jun 12-15   NZ National Agricultural Fieldays '96, Hamilton 
DRG   Jun 15-17   Pharmacy '96, Auckland 
FUR   Jun 21-23   NZ Home Interiors '96, Christchurch 
FUR   Jul 9-15   Artex Auckland '96, Auckland 
HCS   TBA   Health & Safety '96, TBA 
TEL   Aug TBA   Communications '95 
HTL   Aug 11-13   Foodservice '96, Auckland 
CPT   Sep 3-5   Computerworld Expo '96, Wellington 
GFT   Sep 15-17   South Island Gift Fair '96, Christchurch 
FUR   Sep 18-22   Homeshow Auckland '96, Auckland 
GFT   Sep 29-Oct 1   Christmas Stocking Fair '96, Auckland 
COS   Oct 4-6   Beauty Hair & Health '96, Auckland 
FPP   Oct 8-10   Foodtech & Packaging '96, Auckland 
FUR   Oct 8-14   Homeshow Christchurch '96, Christchurch 
APS   Nov 6-10   NZ Motorshow '95, Auckland 
CPT   Nov 22-24   Soho Computer, Auckland 
CPT   TBA   Soho Computer, Wellington or Christchurch 
 
2.  USDOC SPONSORED EVENTS 
 
There are no approved or USDOC sponsored New Zealand trade shows for 
FY96. 
 
For specific agricultural shows/exhibitions please contact FAS 
Wellington, Fax: (64-4) 473-0772
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