United Arab Emirates Comprehensive Economic Partnership Agreement Legislation Amendment Bill

2.1. Are there any publicly available inquiry, review or evaluation reports that have informed, or are relevant to, the policy to be given effect by this Bill?

YES

The UAE CEPA National Interest Analysis (NIA) was prepared by the Ministry of Foreign Affairs and Trade and published on 14 January 2025. The NIA is available from https://www.mfat.govt.nz/assets/Trade-agreements/UAE-CEPA/National-Interest-Analysis-for-NZ-UAE-CEPA-and-BIT.pdf.

The Foreign Affairs, Defence and Trade Select Committee (FADTC) examined the UAE CEPA and NIA in February and March 2025. FADTC’s report on the CEPA was published on 7 March 20025. FADTC’s final report is available from https://selectcommittees.parliament.nz/v/15/3e5d3ba9-775e-4e9e-59d9-08dd3fe8e6d3.

2.2. Does this Bill seek to give effect to New Zealand action in relation to an international treaty?

YES

The Bill seeks to give effect to the New Zealand – United Arab Emirates Comprehensive Economic Partnership Agreement (the CEPA), done on 14 January 2025 at Abu Dhabi, United Arab Emirates. The CEPA text can be found at https://www.mfat.govt.nz/en/trade/free-trade-agreements/free-trade-agreements-concluded-but-not-in-force/new-zealand-united-arab-emirates-free-trade-agreement/text-of-the-agreement.

2.2.1. If so, was a National Interest Analysis report prepared to inform a Parliamentary examination of the proposed New Zealand action in relation to the treaty?

YES

The UAE CEPA National Interest Analysis was prepared by the Ministry of Foreign Affairs and Trade and published on 14 January 2025. On 28 January 2025 the NIA was presented to the House of Representatives as part of the Parliamentary Treaty Examination process. The NIA is available from https://www.mfat.govt.nz/assets/Trade-agreements/UAE-CEPA/National-Interest-Analysis-for-NZ-UAE-CEPA-and-BIT.pdf.

2.3. Were any regulatory impact statements provided to inform the policy decisions that led to this Bill?

YES

The NIA prepared by the Ministry of Foreign Affairs and Trade, in consultation with other relevant government agencies, is an extended NIA that incorporates the regulatory impact statement requirements, enabling the NIA to take the place of a regulatory impact statement. The NIA was published on 14 January 2025 and can be found at https://www.mfat.govt.nz/assets/Trade-agreements/UAE-CEPA/National-Interest-Analysis-for-NZ-UAE-CEPA-and-BIT.pdf.

2.3.1. If so, did the RIA Team in the Treasury provide an independent opinion on the quality of any of these regulatory impact statements?

NO

2.3.2. Are there aspects of the policy to be given effect by this Bill that were not addressed by, or that now vary materially from, the policy options analysed in these regulatory impact statements?

NO

2.4. Has further impact analysis become available for any aspects of the policy to be given effect by this Bill?

YES

The Foreign Affairs, Defence and Trade Select Committee (FADTC) examined the UAE CEPA and NIA in February and March 2025. FADTC’s report on the FTA was published on 7 March 2025. FADTC’s final report is available from FADTC’s final report is available from https://selectcommittees.parliament.nz/v/15/3e5d3ba9-775e-4e9e-59d9-08dd3fe8e6d3.

2.5. For the policy to be given effect by this Bill, is there analysis available on:

(a)   the size of the potential costs and benefits?

YES

(b)   the potential for any group of persons to suffer a substantial unavoidable loss of income or wealth?

YES

2.5(a):

A cost-benefit analysis of the Agreement is included in Sections 3, 4, 7 and 8 of the NIA, which is available from https://www.mfat.govt.nz/assets/Trade-agreements/UAE-CEPA/National-Interest-Analysis-for-NZ-UAE-CEPA-and-BIT.pdf.

2.5(b):

The NIA assesses the impact for New Zealand of meeting the Agreement’s obligations (including as met through implementing legislation). No group of persons is identified as potentially suffering a substantial or unavoidable loss of income or wealth as a result of the UAE CEPA. The UAE CEPA is estimated to result in a net economic benefit for the New Zealand economy.

The NIA notes that, due to the nature of New Zealand’s narrow export portfolio with the UAE, it is likely that some industries are likely to receive greater benefits than others. That will likely result in some regions and some groups of New Zealanders receiving greater benefits than others. Any variation in the benefits provided by the CEPA do not relate to the contents of this Bill.

2.6. For the policy to be given effect by this Bill, are the potential costs or benefits likely to be impacted by:

(a)   the level of effective compliance or non-compliance with applicable obligations or standards?

NO

(b)   the nature and level of regulator effort put into encouraging or securing compliance?

NO

This question is not applicable to the implementation of the FTA.

3.1. What steps have been taken to determine whether the policy to be given effect by this Bill is consistent with New Zealand’s international obligations?

The amendments to New Zealand law, as set out in the Bill, are necessary for New Zealand to ratify the UAE CEPA. MFAT has worked with relevant domestic agencies to identify required amendments and prepare the Bill, and considers that the policies that will be given effect to by the Bill are consistent with New Zealand’s international obligations.

3.2. What steps have been taken to determine whether the policy to be given effect by this Bill is consistent with the principles of the Treaty of Waitangi?

The UAE CEPA preserves the unique status of the Treaty of Waitangi. The UAE recognised the importance of this to New Zealand and agreed to the inclusion of the Treaty of Waitangi exception to protect the capacity of the Crown to implement domestic policies that fulfil its obligations to Māori, including under the Treaty of Waitangi, without being obliged to offer equivalent treatment to the UAE. This provision is consistent with all of New Zealand’s FTAs since 2001.

In addition, and although the Treaty of Waitangi exception applies across the FTA as a whole, in response to the Waitangi Tribunal Wai 2522 decision, New Zealand ensured the Digital Trade chapter explicitly provided additional safeguards, such that the disciplines contained in the chapter will not apply to measures taken by New Zealand to protect or promote Māori rights, interests, duties, or responsibilities.

The NIA prepared by MFAT also includes analysis on effects of the FTA on Māori in sections 7.4 and 9 which is available from: https://www.mfat.govt.nz/assets/Trade-agreements/UAE-CEPA/National-Interest-Analysis-for-NZ-UAE-CEPA-and-BIT.pdf.

3.3. Has advice been provided to the Attorney-General on whether any provisions of this Bill appear to limit any of the rights and freedoms affirmed in the New Zealand Bill of Rights Act 1990?

YES

The Ministry of Justice is considering whether the Bill is consistent with the rights and freedoms affirmed in the New Zealand Bill of Rights Act 1990 and will provide advice on this to the Attorney-General.

3.4. Does this Bill create, amend, or remove:

(a)   offences or penalties (including infringement offences or penalties and civil pecuniary penalty regimes)?

NO

(b)   the jurisdiction of a court or tribunal (including rights to judicial review or rights of appeal)?

NO

3.4.1. Was the Ministry of Justice consulted about these provisions?

NO

3.5. Does this Bill create, amend or remove any provisions relating to the collection, storage, access to, correction of, use or disclosure of personal information?

NO

3.5.1. Was the Privacy Commissioner consulted about these provisions?

NO

3.6. Has there been any external consultation on the policy to be given effect by this Bill, or on a draft of this Bill?

YES

New Zealand launched public consultations on a CEPA with the UAE on 29 February 2024, calling for submissions from anyone with an interest in providing feedback, including Māori, civil society and NGOs, and businesses or individuals currently trading into the UAE market or those with an interest in doing so in the future. Over a dozen submissions were received, which informed Cabinet’s decision to launch negotiations in May 2024.

Negotiators also engaged with Treaty Partner representative groups during the exploratory process leading up to negotiations which commenced in September 2023, and following the launch of negotiations in May 2024. This engagement, with Ngā Toki Whakarururanga, Te Taumata, Iwi Chairs and Federation of Māori Authorities Inc., consisted of ad hoc dedicated meetings, as well as briefings on the UAE CEPA during regularly scheduled engagements. Draft negotiating texts were shared with Treaty Partner representatives under confidentiality agreements in May, July, September and October 2024.

Negotiators also engaged with the New Zealand Council of Trade Unions and shared draft negotiating texts under confidentiality agreement in July and November 2024.

The fast pace of the negotiations, reflecting UAE practice (with over 20 agreements concluded in the three years since launching its CEPA programme), meant that the timeframes for engagement and consultation were necessarily compressed, but feedback received informed New Zealand’s negotiating positions.

Negotiators also engaged with key industry groups including Business New Zealand / Export New Zealand, the Dairy Companies Association of New Zealand, the Meat Industry Association, the Horticulture Export Authority, Seafood New Zealand, New Zealand Winegrowers and others, including interested companies and individuals.

3.7. Have the policy details to be given effect by this Bill been otherwise tested or assessed in any way to ensure the Bill’s provisions are workable and complete?

YES

While no specific testing has been completed, the negotiation of the obligations in UAE CEPA was conducted by an inter-agency team led by MFAT. MFAT worked with relevant domestic agencies to assess the policy details to be given effect by this Bill and to ensure the Bill’s provisions are workable and complete.

The Bill is based on previous models successfully used to implement other New Zealand free trade agreements and investment treaties.

4.1. Does this Bill contain any provisions that could result in the compulsory acquisition of private property?

NO

4.2. Does this Bill create or amend a power to impose a fee, levy or charge in the nature of a tax?

YES

The Bill enables the application of preferential tariff rates under the Agreement to goods traded between the Parties. Clauses 15 to 19 of the Bill allow for amendments to the New Zealand Tariff.

4.3. Does this Bill affect rights, freedoms, or impose obligations, retrospectively?

NO

4.4. Does this Bill:

(a)   create or amend a strict or absolute liability offence?

NO

(b)   reverse or modify the usual burden of proof for an offence or a civil pecuniary penalty proceeding?

NO

4.5. Does this Bill create or amend a civil or criminal immunity for any person?

NO

4.6. Does this Bill create or amend a decision-making power to make a determination about a person’s rights, obligations, or interests protected or recognised by law, and that could have a significant impact on those rights, obligations, or interests?

YES

Yes, in relation to certain foreign investors for types of investments. The Bill amends the Overseas Investment Act 2005 and the Overseas Investment Regulations 2005, to increase from $100 million to $200 million the monetary threshold above which consent is required for investments by United Arab Emirates (UAE) non-government investors in significant business assets for the purpose of providing specified types of service in New Zealand.

4.7. Does this Bill create or amend a power to make delegated legislation that could amend an Act, define the meaning of a term in an Act, or grant an exemption from an Act or delegated legislation?

NO

4.8. Does this Bill create or amend any other powers to make delegated legislation?

YES

Clause 2 of the Bill allows for the Governor-General, by Order in Council, to set a date for commencement of the Bill, once a date for entry into force of the UAE CEPA becomes known, as this date depends on both the UAE and New Zealand completing our respective domestic processes for ratification.

4.9. Does this Bill contain any provisions (other than those noted above) that are unusual or call for special comment?

NO