http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 14.17Change: 0.03
R/$ = 11.07Change: 0.01
Au 1238.28 $/ozChange: -4.47
Pt 1258.00 $/ozChange: 3.00
 
 
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 Contact 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|Africa|Belgium|Chile|Malaysia|South Africa|Spain|Gross Domestic Product|Karl De Gucht
|Africa|Africa|||
pretoria|africa-company|africa|belgium|chile|malaysia|south-africa|spain|gross-domestic-product|karl-de-gucht
© Reuse this



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
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
 
Latest News
A former employee of the Manufacturing, Engineering and Related Services Sector Education and Training Authority (Merseta) and his accomplice have each been sentenced to 20 years imprisonment after being found guilty of fraud by the Specialised Commercial Court, in...
The Richards Bay Bulk Terminal, in KwaZulu-Natal, loaded 1.49-million tons of cargo in September, exceeding its monthly target of 1.32-million tons, Transnet Port Terminals (TPT) said on Monday. TPT said the reaching of vessel targets ahead of deadline created...
Judge Dennis Davis
The revenue implications for South Africa of ‘base erosion and profit shifting’ by corporate taxpayers are firmly in the crosshairs of the Davis Tax Committee (DTC) and Judge Dennis Davis hinted on Monday that recommendations were being considered to “detect and...
More
 
 
Recent Research Reports
Defence 2014: A review of South Africa's defence industry (PDF Report)
Creamer Media’s Defence 2014 report examines South Africa’s defence industry, with particular focus on the key participants in the sector, the innovations that have come out of the sector, local and export demand, South Africa’s controversial multibillion-rand...
Road and Rail 2014: A review of South Africa's road and rail infrastructure (PDF report)
Creamer Media’s Road and Rail 2014 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail network, the funding and maintenance of these respective networks, and the push to move road...
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
Real Economy Insight: Construction 2014 (PDF Report)
This five-page brief covers key developments in the construction industry over the past 12 months. It provides an overview of the sector and includes details of employment in the sector, infrastructure and municipal spending, as well as insight into companies’...
Real Economy Insight: Electricity 2014 (PDF Report)
This five-page brief covers key developments in the electricity industry over the past 12 months, including details of State-owned power utility Eskom’s generation activities, funding and tariffs, independent power producers and prospects for the sector.
 
 
 
 
 
This Week's Magazine
The broad-based black economic-empowerment (BBBEE) alignment process in the con-struction sector has begun, dur-ing which the sector codes of the Construction Sector Charter Council (CSCC) will be aligned with the revised Codes of Good Practice (CoGP), which come...
It is second time lucky for Toby Venter. Ten years ago he negotiated to buy the Kyalami racetrack, but “the deal did not materialise”.
Environmental solutions company I-Cat started construction work on its R22-million, 1 949 m2 environmentally sustainable office and warehouse facility, commissioned by I-CAT Environmental Solutions, at a launch event in October. The new sustainable I-CAT campus,...
IAN EVANS AirWatch file synchronisation and sharing system was initially designed for a large airline company
Effective file synchronisation and sharing across an organisation’s structures can provide the basis for robust mobile-device and document management while maintaining proper backup, version control and content distribution. These are the lessons learned by complex...
Hotel group Carlson Rezidor currently holds the largest hotel pipeline in Africa with 30 hotels and 6 300 rooms under development. The hotel group develops and operates Radisson Blu in the upper upscale segment and Park Inn by Radisson in the mid-market segment. With...
 
 
 
 
 
 
 
 
 
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