Proposed changes to liquor laws could put New Zealand in conflict with international trade agreements and its obligations to Australia, a legal expert has told a parliamentary select committee.
‘‘Steps that target RTDs in particular . . . would be clearly inconsistent with the principles of CER"
The justice select committee is hearing submissions on the Alcohol Reform Bill, which proposes a wide range of changes to liquor control and sales regimes.
Stephen Stern, an international expert on intellectual property litigation, submitted evidence yesterday for his client Independent Distillers (Aust) Ltd.
Stern said there was ‘‘grave concern’’ the introduction of regulatory powers that could prejudicially target one form of alcohol over another by restricting named products ran counter to agreements in the Closer Economic Relationship (CER) agreement between New Zealand and Australia.
‘‘Steps that target RTDs (ready to drink) in particular . . . would be clearly inconsistent with the principles of CER,’’ he said.
‘‘There is also a high likelihood that the legislation may breach articles of the World Trade Organisation Agreement on Technical Barriers to Trade.’’
Stern said if the Government applied to change the New Zealand-Australia code, it would be likely to encounter ‘‘significant problems’’.
‘‘Another concern, as acknowledged by the Government itself, is that under the proposed regulatory powers, RTDs manufactured in Australia and not subject to New Zealand law could still be imported into New Zealand because of transTasman arrangements.’’
‘‘This could encourage producers to move manufacturing offshore and cost New Zealand jobs and investment.’’
Source Fairfax Media