Overseas Investment (CPTPP—Chile) Amendment Regulations 2023
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2023/4
Overseas Investment (CPTPP—Chile) Amendment Regulations 2023
Cindy Kiro, Governor-General
Order in Council
At Wellington this 8th day of February 2023
Present:
Her Excellency the Governor-General in Council
These regulations are made under section 61A of the Overseas Investment Act 2005—
(a)
on the advice and with the consent of the Executive Council; and
(b)
on the recommendation of the Minister of Finance made in accordance with section 61A(3) of that Act.
Contents
Regulations
1 Title
These regulations are the Overseas Investment (CPTPP—Chile) Amendment Regulations 2023.
2 Commencement
These regulations come into force on 21 February 2023.
3 Principal regulations
These regulations amend the Overseas Investment Regulations 2005.
4 Regulation 85 amended (Definitions)
(1)
In regulation 85(1), revoke the definitions of Chile branch, Chile enterprise, Chile individual, and Chile territory.
(2)
In regulation 85(1), definition of type A enterprise, after paragraph (a)(ii), insert:
(iia)
Chile:
(3)
In regulation 85(1), definition of type A individual, after paragraph (a)(ii), insert:
(iia)
Chile:
(4)
In regulation 85(1), definition of type A territory, after paragraph (a)(ii), insert:
(iia)
Chile:
5 Regulation 86 amended (Definition of ownership and control test)
In regulation 86(2)(b) and (c), replace “a Brunei individual, or a Chile individual”
with “or a Brunei individual”
.
6 Regulation 92 amended (Definition of type 2 investor)
(1)
In regulation 92(1)(a)(i), delete “or a Chile individual”
.
(2)
In regulation 92(1)(a)(ii), delete “or a Chile enterprise”
.
(3)
In regulation 92(1)(a)(ii)(A), delete “or the Chile territory”
.
(4)
In regulation 92(1)(a)(iii), delete “or a Chile branch”
.
(5)
In regulation 92(1)(a)(iii)(A), delete “or the Chile territory”
.
(6)
In regulation 92(3), definition of commercial presence, replace “, the Brunei territory, or the Chile territory”
with “or the Brunei territory”
.
7 Regulation 94 amended (Definition of type 3 investor)
(1)
In regulation 94(1)(a)(i), replace “a Brunei individual, or a Chile individual”
with “or a Brunei individual”
.
(2)
In regulation 94(1)(a)(ii), replace “a Brunei enterprise, or a Chile enterprise”
with “or a Brunei enterprise”
.
(3)
In regulation 94(1)(a)(ii)(A), replace “the Brunei territory, or the Chile territory”
with “or the Brunei territory”
.
(4)
In regulation 94(1)(a)(iii), replace “a Brunei branch, or a Chile branch”
with “or a Brunei branch”
.
(5)
In regulation 94(1)(a)(iii)(A), replace “the Brunei territory, or the Chile territory”
with “or the Brunei territory”
.
Rachel Hayward,
Clerk of the Executive Council.
Explanatory note
This note is not part of the regulations, but is intended to indicate their general effect.
These regulations come into force on 21 February 2023, which is the date on which the Comprehensive and Progressive Agreement for Trans-Pacific Partnership done at Santiago on 8 March 2018 (the CPTPP Agreement) enters into force for Chile.
These regulations amend Part 5 of the Overseas Investment Regulations 2005 (the principal regulations), which provides for alternative monetary thresholds for overseas investments in significant business assets for the purpose of implementing New Zealand’s obligations under the CPTPP Agreement. The thresholds apply for the purpose of determining whether overseas investments in business assets require consent under the Overseas Investment Act 2005 (the Act).
These regulations bring Chile into the same overseas investment position as countries for which the CPTPP Agreement has already entered into force. Monetary thresholds in section 13 of the Act increase from $100 million to $200 million for investors from those countries.
The CPTPP Agreement also triggered “most favoured nation”
obligations that New Zealand has under the Korea FTA, ANZTEC, the Hong Kong CEP, the China FTA, and the P4 Agreement. Chile is a party to the P4 Agreement. Those “most favoured nation”
obligations require New Zealand to treat investors from the other parties to those agreements in the same way as, or in a similar way to, the way it treats investors from other parties to the CPTPP Agreement. These regulations remove Chile’s “most favoured nation”
treatment under Part 5 of the principal regulations, which will no longer be needed once Chile has become a party to the CPTPP Agreement.
Regulatory impact statement
The Ministry of Foreign Affairs and Trade produced a national interest analysis (which incorporated all elements of a regulatory impact assessment) to help inform the decisions taken by the Government relating to the CPTPP Agreement.
A copy of the national interest analysis can be found (appended to the report of the Foreign Affairs, Defence and Trade Committee) at—
Date of notification in Gazette: 9 February 2023.
These regulations are administered by the Treasury.
Versions
Overseas Investment (CPTPP—Chile) Amendment Regulations 2023
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