MEDIA STATEMENT
28 September 1999
FOR IMMEDIATE RELEASE
BROADCASTING POLICY SHOWS LABOUR’S INEXPERIENCE IN INTERNATIONAL AFFAIRS
The Labour Party’s intention to introduce local content quotas on broadcasters is inconsistent with our World Trade
Organisation (WTO) obligations, and shows Labour’s inexperience in international affairs, according to Trade Minister
Lockwood Smith.
“Under the General Agreement on Trade in Services (GATS), the imposition of local content quotas in broadcasting
services would be contrary to New Zealand’s specific commitments on audio-visual services,” Dr Smith said.
“Article XVI of the GATS provides a list of measures that should not be adopted by World Trade Organisation Members
unless otherwise specified in their schedules of commitments. Article XVI (c) refers to ‘… limitations … on the total
quantity of service output expressed in terms of designated numerical units in the form of quotas…’.
“New Zealand takes its WTO obligations very seriously because of the benefits they give to our exporters. New Zealand’s
export community is well aware that maintaining access to markets involves a considerable effort, and as a small
country, New Zealand has been well served by the rules-based approach provided by the WTO.
“It’s clear that Labour hasn’t fully considered the valid concerns of our exporting community in the development of its
broadcasting policy. Major exporters of audio-visual services in offshore markets follow local content issues
assiduously, and if Labour’s policy were implemented, New Zealand could well face requests for compensation from other
WTO members.
“In any case, CER means that Australian productions would count as local content within Labour’s proposed quota, meaning
that the policy would have little, if any, effect on the development of New Zealand’s broadcasting industry.
“Labour’s policy is poorly thought out. Our special relationship with Australia means that the policy is unlikely to
achieve its basic objective, whilst threatening New Zealand’s sound reputation as a solid, reliable Member of the WTO,”
Dr Smith concluded.
ENDS