9 Trade and industry implications

9.1.1 It has been proposed that we have a role in developing and maintaining local knowledge and skill in Public Key Technology (PKT). By requiring that CA operations be located in New Zealand we would encourage local investment in PKT, which may have gains for New Zealand companies through export of product or skills.

9.1.2 Due to Australia's proximity, the Australia New Zealand Closer Economic Relations Trade Agreement (CER), and Australia's existing investment in PKI, it seems appropriate to permit the use of Australian CAs. However, NZ CAs cannot sell certificates to the Australian government without setting up shop both physically and legally in Australia, and so a CA may find it more favourable to conduct their operations in Australia, and just place a marketing division in NZ. This apparently restrictive trade practice is probably justified on the basis of national security.

9.1.3 The private sector will have an interest in being able to conduct electronic business with Australian firms and there is a concern that New Zealand businesses may need Australian GateKeeper certificates to do business with Australian businesses and the Australian government; but this is outside the scope of this document.