I Policy and Regulation
Ministry of Economic Development
33 Bowen Street, (PO Box 1473), Wellington
Telephone: 04-472 0030
Website: www.med.govt.nz
The Ministry of Economic Development (MED) advises the government on regulations, standards and conformance and their impact on the business environment. It also co-ordinates technical input into international trade negotiations.
MED is responsible for overseeing New Zealand's standards and conformance infrastructure. Its objectives are to:
- Co-ordinate and assist the development of a technical infrastructure that meets the needs of local business and consumers and supports New Zealand trade
- Encourage competition, innovation and productivity
- Reduce compliance costs to business
The Ministry works closely with New Zealand's five specialist technical bodies through the Standards and Conformance Infrastructure Liaison Group:
- Standards New Zealand (SNZ)
- Measurement Standards Laboratory of New Zealand (MSL)
- Trading Standards Service (TSS)
- International Accreditation New Zealand (IANZ)
- Joint Accreditation System of Australia and New Zealand (JAS-ANZ)
The role of these bodies is explained in Sections II, III and IV.
Supporting Trade
MED plays a principal role in supporting New Zealand exporters and importers through promoting internationally the use of "best practice" approaches to reducing technical barriers to trade. The Ministry also negotiates agreements with our trading partners that are designed to address specific barriers. These approaches are consistent with the WTO TBT and SPS Agreements (Technical Requirements for Export).
The same principles are embodied in agreements established with Australia, with the European Union and, most recently, with Singapore. These agreements promote the use of international standards, recognition of conformity assessment and/or recognition of the equivalence of outcomes.
Mutual Recognition
Nations may agree that, although their standards and conformance regimes are not identical, the regimes deliver equivalent outcomes in terms of public safety, environmental protection and other community concerns. Accordingly, they are prepared to recognise each other's regimes as providing the most appropriate or cost efficient approach to reducing or removing technical barriers.
Mutual Recognition Agreements or Arrangements (MRAs) enable New Zealand's test and inspection reports, and product and quality certificates, to be accepted by other economies, and vice versa. MRAs are based on shared confidence in the technical competence of each other's systems and procedures.
Mutual recognition partners agree to accept conformance decisions made in the other country without the need for further assessment. This saves exporters time and money and enables products to be imported from other countries without compromising national or public safety.
- MRAs between governments are in the regulated sector, covering legal requirements, and are fully accepted by the regulators in the partner economies
- MRAs in the voluntary sector are between national infrastructure bodies and cover systems for measurement and conformity assessment. Many regulators in export markets will also accept test and inspection reports and certificates bearing the logos of voluntary MRA partners
MED has prime responsibility for negotiating and maintaining government-level MRAs (regulated sector). These include:
Trans-Tasman Mutual Recognition Arrangement (TTMRA)
The TTMRA came into force on 1 May 1998. It recognises the special relationship between New Zealand and Australia and provides for the most advanced level of integrating regulations between two economies: "if it is good enough for you, it is good enough for me". Products that may be sold in one economy may legally be sold in the other, regardless of differences in standards or other sale-related regulatory requirements. Similarly, persons registered to practise an occupation in one country are, with a few exceptions, entitled to practise an equivalent occupation in the other without undergoing further testing or examination.
Agreement between New Zealand and the European Community for Mutual Recognition of Conformity Assessment (NZ/EU MRA) - for CE Marking
The NZ/EU MRA enables conformity assessment (testing, inspection, certification) of products traded between New Zealand and any of the fifteen members of the European Union to be undertaken in the exporting country, before the goods are shipped.
The NZ/EU MRA does not recognise "equivalence". Each party retains its own regulations and standards, but agrees that: "you may assess on my behalf". Test and inspection reports and management system certificates must be issued by laboratories, inspection bodies and certification bodies that have been designated as competent to assess against the other partner's regulations.
The NZ/EU MRA currently covers only six general product sectors, although there is scope to extend. Exporters needing information on CE marking should contact MED.
Agreement between New Zealand and Singapore on a Closer Economic Partnership (CEP)
The New Zealand/Singapore CEP provides a broader framework of approaches for addressing technical barriers to trade. These include harmonising standards and technical requirements with international standards, recognition of conformity assessment systems and recognition of equivalence of regulatory outcomes.
To date, the parties have negotiated mutual recognition of conformity assessment in electrical and electronic equipment. Conformity assessment agreements, or other approaches to deal with specific technical barriers to trade, will be negotiated in other product sectors in due course.
Asia Pacific Economic Co-operation (APEC)
Officials from MED represent New Zealand on the APEC Sub-Committee on Standards and Conformance, which is working to harmonise mandatory technical requirements for trade between economies in the Asia Pacific region.
APEC has already established regional MRAs covering electrical and electronic equipment and food products. Each partner economy retains its own regulations but accepts assessments undertaken in the exporting country. An APEC MRA is now being negotiated to cover telecommunications. Not all APEC members have signed these agreements, but most intend to do so once they have suitable systems in place.
Ministry of Foreign Affairs and Trade
The Ministry of Foreign Affairs and Trade (MFAT) is responsible for broader international trade policy, including negotiations in the WTO. MFAT maintains a mission in Geneva, headquarters of the WTO, where it represents New Zealand on the Committee on Technical Barriers to Trade (TBT) and the Committee on Sanitary and Phytosanitary Measures (SPS).
MFAT deals with trade barriers and other issues of access to New Zealand's overseas markets. It leads negotiations with other governments in any trade disputes and, if necessary, will take issues to the WTO disputes settlement process.
MFAT works closely with MED to ensure policy developments are consistent with New Zealand's economic and business interests. As part of its responsibility for New Zealand's international treaty-making, MFAT provides advice on the negotiation and approval of Mutual Recognition Arrangements.
Ministry of Agriculture and Forestry
The Ministry of Agriculture and Forestry (MAF) manages risk to the New Zealand public, and to our food, fibre, forestry and associated industries, from any plant or animal sources. This is achieved through implementing legislation and mandatory standards in:
- production, processing and export of food and other animal products, including dairy products and seafood
- registration and use of agricultural compounds, including veterinary chemicals
- biosecurity - risks to animal and plant life, whether these are introduced or arise locally
- animal welfare
MAF advises government on all animal and plant health matters and liaises with other agencies on all developments affecting agricultural industries, the rural community and trade in primary products. When trading partners require assurances that New Zealand produce complies with regulations or standards, MAF will issue certificates of compliance. These certificates are based on on-going checks that standards are being properly followed at all stages of production.
MAF is also New Zealand's Enquiry Point for the WTO Agreement on Sanitary and Phytosanitary Measures (SPS) for agricultural products.
Regulators
New Zealand has relatively few regulations for traded goods and services. Manufacturers and traders take responsibility for the safety of their products through self-regulation. This is backed up by consumer protection legislation.
Some products do, however, pose a particular risk to users, consumers and the general public. In those areas, government has imposed mandatory technical requirements that must be met before the product is placed on the market. These requirements are in the form of regulations, administered and enforced by the government agency with expert knowledge of the technology involved. Examples are:
Food Safety and HACCP
The Ministry of Health is responsible for enforcing food safety regulations for all food sold on the domestic market. The Ministry of Agriculture and Forestry has responsibility for food safety in primary production and exported products.
Many countries, including New Zealand, now encourage the use of the international Hazard Analysis Critical Control Point (HACCP) food safety system. HACCP was developed by the Codex Alimentarius Commission, a joint committee set up by the United Nations bodies, FAO and WHO, that specialises in food quality and safety.
Put simply, HACCP requires food handlers to analyse their operations, identify any potential risks and put systems in place to guard against those risks.
A HACCP system ensures that food processors, wholesalers and retailers, restaurants and other food premises are identifying and managing any areas or processes where food contamination or deterioration could occur. Risks must be managed from supply through to delivery. Staff must also be trained in food safety practices and the whole system must be monitored continuously. The system must be audited regularly by independent HACCP auditors.
HACCP is especially important to food exporters as some markets now insist that all food suppliers have an independently audited and certified HACCP system in place. In Europe and the United States, HACCP has become mandatory for many food products.
In the domestic market, HACCP is voluntary, but food processors and retailers with an independently audited HACCP system in place can apply to the Ministry of Health for exemption from regular food safety inspections.
Electrical and Gas Safety
The Energy Safety Service in the Ministry of Consumer Affairs is responsible for safeguarding people and property from the dangers of gas and electricity. This includes responsibility for the safety of electrical and gas appliances and installations, and the safety of electricity supply and generating systems. The service also regulates the quality and measurement of gas and electricity and the quality of petrol and diesel.
Electrical appliances may also need to be checked for electromagnetic compatibility to ensure that emissions are safe and do not cause electrical interference.
Machinery, Pressure Equipment, Cranes and Passenger Rope-Ways
Machinery and equipment that could injure operators, users or members of the public is regulated by the Occupational Safety and Health (OSH) division of the Department of Labour. Things such as pressurised boilers, cutting machines and fairground rides must meet OSH requirements before they can be used in New Zealand.
In many of New Zealand's export markets, the regulatory regime is more complex and more regulations are enforced pre-sale. That means that products must be tested or inspected and certified before being placed on the market.
Exporters need to check carefully whether there are any technical requirements their product must meet in each market and what is involved. Failure to do so can lead to frustrating and expensive delays. Trade New Zealand's overseas offices are able to assist with advice on market entry requirements. Information is also available from the TBT and SPS Enquiry Points in the importing country. (The list of Enquiry Points for each WTO member, with contact details, is on the WTO website).
Back to Top