NZ has been previously affected by Investor State Disputes Settlement
“Government claims that New Zealand has never been sued by a corporation under existing trade agreements may be
correct,” says Myles Thomas from the Coalition for Better Broadcasting (CBB), “but it is worth noting that the threat of
Investor/State litigation did affect government policy in 1998 and early 2000s.”
In 1998 the National Government’s Minister of Culture was considering compulsory local content broadcasting quotas. Such
quotas are commonplace around the world1as a means to supporting local music on radio and programmes on television. But
a report commissioned by the Ministry2 concluded that quotas would breach GATS commitments because it would limit the
profitability of foreign record labels, film producers and television producers.
In 2000 the Labour Government had to back away from election promises it had made to introduce New Zealand content
quotas, after being advised that it would breach GATS3. The following year the US government also pointed out quotas in
NZ would contravene the GATS4. The Clark government eventually helped create a voluntary music quota for radio stations
which was successful, and the less effective TVNZ Charter.5
“It’s possible that when Jim Bolger signed GATS seven years prior, he didn’t believe it could ever affect New Zealand
television or music content,” said Mr Thomas, “although it’s interesting that Australia did not agree to the clauses
that limit quotas6and to this day, has very successful quotas for Australian music (25%) and for Australian television
(55%).”
“This is a small but significant example of how the ISDS system has already impacted upon New Zealand, and could do so
again under the TPPA - not by actual legal action but by the threat of it, forcing a government to alter a policy, how
it implements it, or to simply cancel it altogether.”
The CBB calls on the government to ensure that under TPPA; our film, television, music and other cultural assets are
safe from threat of litigation, undue pressure or intimidation from overseas interests.
ENDS