Foreign Minister Winston Peters. Photo: RNZ NICK MONRO
The government is looking to tighten controls over exporting weapons or advanced technologies that could be misused in war.
They would build on changes made since the controls were found to be too weak three years ago, when a 2021 review concluded they fell short of "contemporary best practice".
Globally, exporters of "dual-use" civilian-military goods were facing "increasing scrutiny and regulatory complexity due to rising geopolitical tensions", said local law firm Minter Ellison in a commentary telling clients to prepare for tighter controls.
"Export control regimes have struggled to keep pace with rapidly advancing technologies."
New Zealand was signed up to four export control regimes.
"New Zealand monitors the export control policies and controls of other countries, including our major partners, to ensure our controls are consistent with broader efforts to ensure dual use goods do not fall into the wrong hands," the Ministry of Foreign Affairs and Trade (MFAT) told RNZ.
"The... government is currently considering how our national controls can be further strengthened."
The ministry was exploring potential legislative reform in line with the 2021 review.
"The policy objectives for the additional controls under consideration relate to national security (including to counter foreign interference) and ensure broad export controls alignment with international commitments."
But the moves had nothing to do with the country considering joining AUKUS Pillar Two, an arrangement for sharing military tech between the US, UK and Australia, MFAT added.
Minter Ellison said if the country did join, its export controls would need substantial change; and if it did not join, "New Zealand exporters of advanced technologies, dual-use goods and defence-related items are likely to face new market access barriers and competitive disadvantages in Australia, the UK and the US."
The US has made recent moves to set up a "defence free-trade zone" with the UK and Australia, including changes to what goods its International Traffic in Arms Regulations covers, partly as a result of Pillar Two.
New Zealand signed up this year to a US move to promote "Indo-Pacific defence industrial base collaboration" to unlock new sources of weapons supplies.
In Washington, efforts have snowballed since 2023 to give the US more access to allies' capabilities and technologies, with the Five Eyes group that New Zealand is part of central to that.
MFAT administered the local export controls regime, doing risk assessments and issuing permits for controlled goods. Customs did investigations - it was yet to prosecute any cases of breaking the rules.
It had added staff and updated its assessment criteria and given exporters more guidance since the critical 2021 review, and would commission an independent review next year, it said.
It was looking at changes around cloud computing, and regulation-making powers and appeals.
As for policy changes, "it is logical that we would seek to do this in line with our partners", MFAT added.
The global situation is in flux. Minter Ellison said extra controls had been introduced unilaterally by some major tech exporters, including the US and European Union, around quantum computing, semiconductors, supercomputers chips, and additives for metal or metal alloy.
"Further controls on exports of other advanced technologies, including AI capabilities, are anticipated."
Aligning with AUKUS Pillar Two would require strengthening end-use and end-user verification processes, creating new offences and increasing penalties for breaches, the law firm said.
Spy agencies would have to be consulted more.
"Delivering reforms of this nature in good time would be a significant undertaking."
A US report echoed this, stating that under AUKUS, the US, Australia and the UK would need to review their controls, particularly around missile technology, if meaningful tech transfer was going to happen.
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