http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 17.05Change: 0.09
R/$ = 14.89Change: 0.03
Au 1276.68 $/ozChange: -1.44
Pt 1059.00 $/ozChange: 4.50
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
 
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Letters About Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Jul 18, 2013

EU warns SA on investment treaties and export taxes

Back
European Trade Commissioner Karl de Gucht
European Trade Commissioner Karl de Gucht
 
 
 
Pretoria|Africa|Export|Africa|Belgium|Chile|Malaysia|South Africa|Spain|Gross Domestic Product|Karl De Gucht
|Africa|Export|Africa|||
pretoria|africa-company|export|africa|belgium|chile|malaysia|south-africa|spain|gross-domestic-product|karl-de-gucht



European Commissioner for Trade Karl De Gucht bluntly warned on Thursday that South Africa's current and proposed policies on investment agreements and export taxes are proving counterproductive or will not work.

Pretoria has unilaterally cancelled bilateral investment treaties with a number of countries, including Belgium and Spain. South Africa is also proposing to impose taxes on its own raw material exports in an attempt to increase local beneficiation and industrialisation.

"You have unilaterally put an end to bilateral investment agreements. This is bad policy," De Gucht told a small group of South African journalists on Thursday.

"You need investment. This is not the way to do it. We [the European Union (EU)] are the biggest investors in South Africa. Our investment is going down. If you want to replace existing agreements, negotiate new ones. Put in place new ones."

He highlighted that, in 2012, foreign direct investment in South Africa had dropped to the equivalent of just 1% of the country's gross domestic product. This represented a historical low and was much lower than in the case of peer countries such as Chile and Malaysia. "There is a complete contradiction between [South Africa's aim of] industrialisation and this lack of inward investment."

Regarding Pretoria's proposal to use taxes to push local beneficiation and industrialisation, De Gucht affirmed: "I don't believe it'll work. You simply can't industrialise on the basis of export taxes. For industrialisation, you need to plug into supply chains. These have become worldwide."

Nevertheless, the EU, which has a Trade and Development Cooperation Agreement with South Africa, was willing to give some consideration to the issue. "[If] it'll unblock negotiations, we're willing to be flexible. This is because, in part, it [the export tax] will not work. It's not the basis for industrialisation. It doesn't work. It doesn't harm the EU. European buyers will simply go to other countries. The EU is only concerned in the case of commodities that affect us [that can't be easily obtained elsewhere]."

"But you're a sovereign country," noted De Gucht. "You can do want you want."

Edited by: Creamer Media Reporter

To subscribe email subscriptions@creamermedia.co.za or click here
To advertise email advertising@creamermedia.co.za or click here
 
Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
 
Latest News
David Hughes
Updated 44 minutes ago In a bruised domestic market scrambling for volume, Mazda Southern Africa is having a Zen moment. Mazda sales in South Africa reached 9 066 units in 2015, almost double the 4 939 units sold in 2014 – this in a new-vehicle market that dipped 4.2% last year compared...
Updated 1 hour 38 minutes ago Thousands of workers at the cash-strapped South African Post Office (SAPO) will embark on a two day strike on Thursday and Friday over unresolved labour matters and demands for salary increments. The members of Cosatu affiliate, Communication Workers Union (CWU),...
Updated 2 hours ago South African National Roads Agency CEO on Wednesday said the backlog of maintenance and road networks was sitting at R197-billion, up from R149-billionn in 2010. CEO Nazir Alli was addressing the business sector at the Beverly Hills Hotel in Umhlanga. He said...
More
 
 
Recent Research Reports
Energy Roundup – May 2016 (PDF Report)
The May 2016 roundup covers activities across South Africa for April 2016 and includes details of the National Energy Regulator of South Africa’s proposal to introduce a coal benchmark cost as part of its final decision on Eskom’s multiyear price determination...
Automotive 2016: A review of South Africa's automotive sector (PDF Report)
Creamer Media’s Automotive 2016 Report provides an overview of South Africa’s automotive industry over the past 12 months. The report provides insight into local demand and production, vehicle imports and exports, investment and competitiveness in the sector, as well...
Energy Roundup – April 2016 (PDF Report)
The April 2016 roundup covers activities across South Africa for March 2016 and includes details of a North Gauteng High Court Judge’s dismissal of a court application to postpone the 9.4% electricity tariff increase, which the National Energy Regulator of South...
Electricity 2016: A review of South Africa's electricity sector (PDF Report)
Creamer Media’s Electricity 2016 report provides an overview of South Africa’s electricity sector, focusing on State-owned power utility Eskom and independent power producers, electricity planning, transmission, distribution and the theft thereof, besides other issues.
Energy Roundup – March 2016 (PDF Report)
The March 2016 roundup covers activities across South Africa for February 2016 and includes details of the Department of Energy’s plans to announce the preferred bidders for the first tranche of the coal independent power producer procurement programme; the Council...
Steel 2016: A review of South Africa's steel sector (PDF Report)
Creamer Media’s Steel 2016 Report examines South Africa’s steel industry over the past 12 months. The report provides insight into the global steel market and and particularly into South South Africa’s steel sector, including production and consumption, main...
 
 
 
 
 
This Week's Magazine
The two spent-fuel pools at Eskom’s 1 800 MW Koeberg nuclear power station, in the Western Cape, will be full by 2018, increasing the urgency on the State-owned utility to begin pursuing alternative storage options. Koeberg has, over the past 32 years, accumulated a...
South Africa lacks the skills necessary to implement the government’s plan to build 9.6 GWe of new nuclear energy capacity, warns nuclear-qualified Quality Strategies International CEO David Crawford. “Apart from the concern about the affordability of the programme,...
DOROS HADJIZENONOS The 700-series devices provide network security monitoring, app control, URL filtering, VPN security, antivirus, antispam, antibot, and advanced intrusion prevention and detection functionality
Cybersecurity multinational Check Point has released its latest 700-series cybersecurity systems for small businesses, which draw on its international threat intelligence to provide up-to-date cybersecurity, says Check Point South Africa country manager Doros...
Daimler Trucks and Buses Southern Africa (DTBSA) saw a marked slip in new-vehicle sales in 2015 compared with 2014, with sales dropping from 5 897 units to 5 300 units. The decline came as the South African new truck and bus market declined from 31 558 units in 2014...
Group of 20 (G-20) economies threatened to penalise havens that don’t share information on their banking clients after the leak of the Panama Papers provoked a global uproar over tax evasion. The G-20 will consider “defensive measures” against financial centers and...
 
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
 
 
Close
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks
Subscribe Now for $149 Close
Subscribe Now for $149