Trans-Tasman legal expert raises red flag on Alcohol Reform

Trans-Tasman legal expert raises red flag on
proposed powers in Alcohol Reform Bill

A Justice & Electoral Select Committee hearing on the proposed Alcohol Reform Bill today heard that draft regulatory powers for restricting alcohol products are headed for a collision course, and, if pursued, are likely to put New Zealand in conflict with international trade agreements, and with its treaty obligations with Australia.

This was the strong message delivered by globally recognised intellectual property lawyer and litigation expert, Stephen Stern, on behalf of client Independent Distillers (Aust) Pty Ltd, to the Committee members at a hearing being held in Auckland on important matters contained either directly in the draft Bill or put forward through Government announcements in the media.

Stephen Stern expressed grave concern that the introduction of regulatory powers that could prejudicially target one form of alcohol over another by restricting named products runs counter to the substantive agreements between New Zealand and Australia, including the Closer Economic Relations Trade Agreement (CER), the Trans Tasman Mutual Recognition Act (TTMRA) and the principles and intention of both CER and the Australia New Zealand Food Standards Code.

“Steps that target RTDs in particular and that fail to address the treaty obligations of the New Zealand government to harmonise standards and technical specifications with Australia, would be clearly inconsistent with the principles of CER. There is also a high likelihood that the legislation may breach articles of the World Trade Organisation Agreement on Technical Barriers to Trade,” said Stephen Stern.

Even were the New Zealand government to comply with its treaty obligations by applying to amend the joint Australia New Zealand Food Standards Code in relation to RTDs, this would undoubtedly encounter significant problems from an Australian industry perspective, and would in any event require a lengthy consultation process.

Independent Distillers’ operation in New Zealand – Independent Liquor New Zealand – employs 300 people and generates $30 million in exports. In the last six years $60 million has been invested locally in capital infrastructure by the company.

“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 trans Tasman arrangements with Australia. This could encourage producers to move manufacturing offshore and cost New Zealand jobs and investment.”

Stephen Stern

Partner, Corrs Chambers Westgarth
Melbourne

Stephen is experienced in all facets of intellectual property law and in particular in patent and trade mark litigation and anti-counterfeiting.

A leading authority in all aspects of intellectual property law, Stephen acts for a wide range of clients including luxury goods manufacturers, clothing, footwear and textile producers, film members, pharmaceutical companies, telecommunication and electronic companies.

Stephen is best known for his extensive patent and trade mark litigation practice, including his anti-counterfeiting work for many of the world’s best-known brands. He is also well-known for his extensive wine law practice in which he acts for the French Government, local and foreign winemakers, vignerons, importers and distributors protecting both geographical indications (such as Champagne and Cognac) and trade marks.

He is involved in both domestic and international licensing, franchising and general transfer of intellectual property.

He was nominated as one of the "World Top 20 Trade Mark Lawyers" by Euromoney in August 1999. Stephen has been nominated as Australia's foremost trade mark lawyer, as one of the world's top 20 trade mark law practitioners by Managing Intellectual Property in May 2006. Stephen is amongst the top 25 Trade Mark experts in the world as nominated by the Expert Guides to the World's Leading Lawyers - Best of the Best 2007 and again in Best of the Best 2009. Stephen was appointed a Chevalier in the Ordre du Mérite agricole by a decree of the French Republic dated 17 July 2006.

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