Multilateral Agreement on Investment

Trade Minister Lockwood Smith has moved to ease concerns in some quarters about the proposed Multilateral Agreement on Investment, or MAI.

"The agreement, which is still very much at the negotiating stage, has concerned some people and it is important their concerns are put to rest," he said. "The agreement is totally within New Zealand law and would require all investors to continue to have to obey New Zealand law."

Concerns about possible erosion of rights under the Treaty of Waitangi "New Zealand has formally noted that our signing or the MAI will not impose any obligations or disadvantages on the Treaty partner," Dr Smith said. "At the same time, Maori who have entered into foreign direct investment deals will be able to continue to benefit from them."

Concerns about possible threats to environmental standards "All foreign investors will have to act in accordance with the Resource Management Act," Dr Smith said. "New Zealand has a strong record on environmental issues and our stance on the MAI fits in with that."

Concerns about land sales to foreigners "All land purchases over five hectares, including forestry and mining, will continue to need the approval of the Overseas Investment Commission," Dr Smith said. "In our negotiations on the MAI we have made sure the Overseas Investment Regulations Act will continue to apply."

Meanwhile, Dr Smith stressed the advantages of any agreement to New Zealanders.

"Any agreement would provide far greater certainty to New Zealanders investing overseas whether directly or through investment or superannuation funds," he said. "The overriding principle is that subject to existing regulations, New Zealand investors will have the same rights under foreign law as locals in those countries. Domestically, our foreign investment policies won't change, but countries which sign the MAI will declare that they have decided not to introduce more investment restrictions."

The agreement is likely to be signed next year.

Dr Smith also released a question and answer sheet, prepared by officials at the Ministry of Foreign Affairs and Trade, for use by journalists and the public who may want to become better informed about the MAI. This can be obtained from the Minister's Office.