Monday, July 15, 2024

NZ granted US excepted status

New Zealand has been granted excepted foreign state investor status by the United States, making it easier for local investors to invest in the US and deepen ties with a key trade partner, Finance Minister, Grant Robertson said today.

“This is a very positive outcome for New Zealand after being granted provisional excepted status in January 2022. We are one of only a few countries to be awarded this status,” said Mr Robertson.

“Ministers and officials from across a number of agencies have worked tirelessly to secure an exemption and I would like to thank them for their efforts and hard work in achieving this goal.”

New Zealand’s inclusion in the excepted states list alongside Australia, Canada, and the UK will lower the barriers for New Zealand investors and support further growth in investment into the US and provide more options for diversification, the Minister said.

“New Zealand firms developing critical technologies or dealing with critical infrastructure such as renewable energy, as well as in personal data, stand to benefit. It also makes it easier for government investment vehicles like the NZ Super Fund to invest in the US in areas such as green technologies.”

Mr Robertson said receiving excepted foreign state investor status had been a priority for New Zealand since 2018, when the US introduced reforms that increased the requirements for screening investments in sensitive areas.

Australia, Canada and the UK were given exceptions in 2020 and put New Zealand investors at a disadvantage when compared to investors from these countries, he said.

Trade and Export Growth Minister, Damien O’Connor also welcomed the status.

“This is a positive step towards stronger trade and business links with a very good friend of New Zealand,” Mr O’Connor said.

Minister Robertson said the decision reflects US confidence in New Zealand’s foreign investment regulatory settings and the close relationship between the two countries.

“New Zealand has undertaken a series of reforms to the Overseas Investment Act since 2018, including around investment screening, bringing the Act in line with overseas investment regimes, including in the US,” he said.

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