Information for New Zealand Policy Advisors
This information is intended as a practical guide to the Trans-Tasman Mutual Recognition Arrangement (TTMRA) for policy advisors working on issues that involve, or may involve, regulating the sale of goods in New Zealand.
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Overview
The Trans-Tasman Mutual Recognition Arrangement (TTMRA) is a non-treaty arrangement between the Government of New Zealand, and the Commonwealth, State and Territory Governments of Australia that provides for the mutual recognition of goods and occupational registration. It is implemented into law in New Zealand and Australia under mirror legislation. The New Zealand legislation is the Trans-Tasman Mutual Recognition Act 1997 (TTMR Act)(external link).
The impetus for the TTMRA came from government recognition that there were regulatory impediments to trade between New Zealand and Australia. For goods, these were often in the form of different regulatory standards, and duplicative testing and certification requirements.
The TTMRA promotes economic integration and facilitates the movement of goods across the Tasman. It means greater flexibility, wider choice of products for consumers, and lower business compliance costs for exporters operating on either side of the Tasman. Because of this, the TTMRA is central to driving deeper levels of regulatory policy coordination and integration between Australia and New Zealand, and is a key instrument towards our shared goal of a single economic market.
The TTMRA is a unique example of regulatory cooperation that reflects the close relationship between New Zealand and Australia. It is based on each country having a high level of trust and confidence in the regulatory outcomes of the other and a shared objective of protecting the public, regardless of differences in specific regulatory requirements. There are safeguards built into the TTMRA in the event that there is significant divergence in regulatory approaches or to confirm matters that were not intended to be caught by the TTMRA.
Goods principle
Under the TTMRA:
- A good that is produced in or imported into Australia, that may be legally sold in Australia, can also be legally sold in New Zealand, without having to meet New Zealand sales related regulatory requirements.
- A good that is produced in or imported into New Zealand, that may be legally sold in New Zealand, can also be legally sold in Australia, without having to meet Australian sales related regulatory requirements.
The goods principle means that if a good complies with all regulatory sales requirements in its home jurisdiction (for example product standards, packaging and labelling requirements) it can be sold in the other without additionally having to comply with the destination jurisdiction’s regulatory sales requirements.
New Zealand sales-related regulatory requirements will not apply in respect of Australian goods sold under the TTMR Act unless the goods or the particular regulatory regime is excluded or exempt from the TTMR Act.
Watch the Trans-Tasman Mutual Recognition Arrangement explained: Breaking down trade barriers across the Tasman video for more information.
TTMRA explained: Breaking down trade barriers across the Tasman video
How the Trans-Tasman Mutual Recognition Arrangement operates
Under section 5 of the Trans-Tasman Mutual Recognition Act 1997 (TTMR Act), every law of New Zealand must, unless it or the TTMR Act otherwise expressly provides, be read subject to the TTMR Act.
Trans-Tasman Mutual Recognition Act 1997(external link) — New Zealand Legislation
The TTMRA goods principle, over-rides any additional point of sale requirements imposed by the domestic laws of the goods’ destination, subject to some exemptions and exclusions. It is important to note that there is no pre-authorisation process for businesses to benefit from the principle. It automatically applies if the elements of the principle are satisfied.
For example
Australian produced or imported goods need only comply with the regulatory sale requirement in Australia for that product to be sold in New Zealand, regardless of any differences in sale requirements between the jurisdictions. The same applies for New Zealand goods intended for sale in Australia. Manner of sale requirements are still applicable (see Types of laws covered/not covered).
Businesses can rely on the defence in the TTMR Act if they are prosecuted for an offence against New Zealand law in relation to the sale of goods so long as the elements for the defence are met.
Trans-Tasman Mutual Recognition Arrangement provides a defence to prosecution
There is a specific defence available under the TTMR Act to prosecutions brought in relation to the sale of goods.
Trans-Tasman Mutual Recognition Act as a defence to prosecution
Types of goods covered
The TTMRA generally applies to goods of any kind, including:
- Animals or plants.
- Material of microbial origin.
- A package containing goods.
- A label attached to goods.
Types of laws covered
Types of laws not covered
Considering the Trans-Tasman Mutual Recognition Arrangement in policy development
Section 5 of the TTMR Act provides that every law of New Zealand must, unless it or the TTMR Act otherwise expressly provides, be read subject to the TTMR Act. In practice, this means that the TTMR Act overrides point of sale regulatory requirements imposed by New Zealand law.
Section 5 of the TTMR Act(external link) — New Zealand legislation
Certain categories of law are excluded from the scope of the TTMRA and there is provision for certain laws to be exempt from the operation of the TTMRA (See Exclusions and exemptions)
The value of the TTMRA is the breadth of its coverage – it applies to all point of sale regulatory requirements, unless a specific exclusion or exemption applies. Any new exclusion or exemption could create a significant precedent. The bar is therefore high, and New Zealand would need compelling reasons to support, or propose, any move to reduce the coverage of the TTMRA.
Policy advisors should therefore be mindful of the TTMRA during the policy development process if a potential outcome could involve regulating the sale of goods. It is important to consider possible TTMRA implications early in the policy development process to avoid unintended consequences and impacts on the achievement of policy objectives.
Key steps policy advisors should take include:
- Ensuring the impact of different policy options on trans-Tasman trade and any potential TTMRA implications are identified and considered early.
- Consulting early with Australian counterparts, including at State and Territory level as appropriate, to understand their current regulatory settings, and the likely future policy direction to determine the extent of differences between our respective approaches.
- Identifying opportunities to work with Australian counterparts on a joint policy approach, or opportunities for increasing the alignment of regulatory approaches.
- Considering the range of options to address the impact of differences in regulatory settings.
See information on IRC Toolkit(external link) - Evaluating the practical issues associated with the application of the TTMRA to different policy options, where developing a common or more aligned approach is not feasible.
- This would include understanding the potential impact of Australian products entering the New Zealand market under the TTMRA, taking into account the actual or likely volume of products imported from Australia.
The resulting analysis should be embedded in your regulatory impact analysis and inform advice to your Minister.
MBIE is the New Zealand contact point for TTMRA related matters and can provide advice on the TTMRA. It is recommended to engage us early in the policy development process to ensure any potential issue is identified and appropriately dealt with.
If you think the bar is met for New Zealand to consider seeking an exemption, you should raise this with us at the earliest opportunity. You will need to have undertaken rigorous analysis, covering the steps above, to support that process. You should also be aware that if an exemption is sound, it should be as narrow as possible to meet the critical public policy objective. More information on the process for seeking a permanent exemption can be found below.
You can also email TTMRA
Exemptions and exclusions
The TTMRA has provisions to exclude and exempt certain laws from its scope. The TTMRA principles do not apply to laws that has been excluded or exempt from the TTMRA.
Exclusions from the Trans-Tasman Mutual Recognition Arrangement
Exclusions
Categories of laws that are automatically outside the scope of the TTMRA.
Circumstances under which it may apply or be invoked
Application
Approval requirements
Exemptions
Particular laws that are exempt either temporarily or permanently from the TTMRA.
Temporary
Circumstances under which it may apply or be invoked
Application
Approval requirements
Permanent
Circumstances under which it may apply or be invoked
Application
Approval requirements
Endorsement procedures
Amendments to the exclusions and exemptions schedules of a jurisdiction’s TTMR Act are formally endorsed in the participating jurisdictions in accordance with the relevant procedure.
New Zealand:
Notice in the NZ Gazette by the Minister of Commerce and Consumer Affairs.
Australia:
Commonwealth
Regulations to the same effect as the proposed regulations have been made.
NSW, VIC, QLD, SA, WA, Tasmania
Notice in the official Gazette of the relevant State, by the Governor of the State or a Minister of the Crown for the State.
Australian Capital Territory
Notice in the official Gazette by the Chief Minister of the Territory.
Northern Territory
Notice in the official Gazette by the Administrator of the Territory
Contact us
If you still have questions, get in contact with us by emailing TTMRA.