This section contains information about the assessment of the likely benefit to New Zealand arising from the factor relating to New Zealand’s image, trade and international relations.

Whether refusing the application for consent will, or is likely to,—

  1. adversely affect New Zealand’s image overseas or its trade or international relations:
  2. result in New Zealand breaching any of its international obligations (r28(c))?

Key elements of this factor

In order to satisfy this factor, refusing the application for consent must be likely to either:

  1. Adversely affect New Zealand’s:
    1. image overseas;
    2. trade; or
    3. international relations; or
  2. Result in New Zealand breaching any of its international obligations.

This factor is not relevant for many applications. It is unusual for this factor to be met.

New Zealand has an overseas investment framework which states, as its purpose, that it is a privilege for overseas persons to own or control sensitive New Zealand assets.

Generally, a well reasoned decline of an application would be unlikely to adversely affect New Zealand's image overseas or its trade or international relations, or result in New Zealand breaching any of its international obligations. New Zealand is also unlikely be at risk of adverse effect merely due to the likelihood of negative publicity.

New Zealand’s image overseas

This factor is sometimes relevant to a large transaction with an international profile where the New Zealand portion of the transaction is small in the context of the overall transaction.

An adverse affect to New Zealand’s appeal as an investment location alone is generally not sufficient to adversely affect New Zealand’s image overseas.

An applicant must clearly explain how refusing the application for consent is likely to adversely affect New Zealand’s image. Statements that an applicant will inform others that New Zealand is not an attractive place to invest will not meet the requirements of this factor.

Trade or international relations

An applicant must clearly explain how refusing the application for consent will adversely affect New Zealand’s trade or international relations. Evidence should be provided to support statements made.

International obligations

An applicant must clearly identify an international obligation and explain how refusing the application for consent will result in New Zealand breaching this obligation.

Making a claim

Provide the following information when making a claim under this factor:

Adversely affect New Zealand’s image overseas or its trade or international relations

An applicant should include the following information:

  1. Adverse Effect:
    A thorough argument detailing any likely adverse effects to New Zealand’s image overseas or New Zealand’s trade or international relations.
  2. Evidence:
    Evidence to show that the adverse effect is likely to occur if the application is refused.

Result in New Zealand breaching any of its international obligations

An applicant should include the following information:

  1. Obligation:
    The international obligation and a copy of the document that establishes the obligation.
  2. Breach:
    Explain how the international obligation is likely to be breached.
  3. Evidence:
    Sufficient evidence to show that the breach is likely to occur if the application is refused.

 

Last Updated: 19 August 2016