http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 13.69Change: -0.08
R/$ = 12.40Change: -0.03
Au 1168.39 $/ozChange: -3.50
Pt 1063.00 $/ozChange: 1.80
 
 
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 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|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
© 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
Sphere Holdings CEO Itumeleng Kgaboesele
Updated 11 minutes ago Black-owned investment holding company Sphere Holdings plans to raise a further R1-billion in the coming months in support of its strategy of becoming a leading black industrial enterprise, which could ultimately seek a listing on the JSE. CEO Itumeleng Kgaboesele,...
Updated 27 minutes ago Deputy Minister of Home Affairs Fatima Chohan declared on Monday that she is willing to accompany representatives of the South African tourism industry to China in order to see how dropping visitor numbers from that country can be curbed. She took part in a visa...
Updated 1 hour 25 minutes ago This eight-page brief is a synopsis of key developments in the construction industry over the past 12 months. It provides an overview of South Africa’s construction sector and includes details thereof in the public and private sectors, as well as labour and skills...
More
 
 
Recent Research Reports
Real Economy Year Book 2015 (PDF Report)
There are very few beacons of hope on South Africa’s economic horizon. Economic growth is weak, unemployment is rising, electricity supply is insufficient to meet demand and/or spur growth, with poor prospects for many of the commodities mined and exported. However,...
Real Economy Insight: Automotive 2015 (PDF Report)
Creamer Media’s Real Economy Year Book comprises separate reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, gold, iron-ore and platinum sectors.
Real Economy Insight: Water 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
Real Economy Insight: Construction 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
Real Economy Insight: Electricity 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
Real Economy Insight: Road and Rail 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
 
 
 
 
 
This Week's Magazine
NHLANHLA NENE The main constraints to economic growth are domestic
Finance Minister Nhlanhla Nene earlier this month stated that, while South Africa’s 2015 economic growth target of 2% was achievable, it was not enough to deliver the tax revenue needed to combat the country’s challenges.
The World Steel Association has published the 2015 edition of the World Steel in Figures report, which shows an increase in steel production as well as provides an overview of steel industry activities from crude steel production to apparent steel use.
The 25-year master plan for Gauteng’s Aerotropolis project will go through a process of approval and adoption during June and July, says Aerotroplis project manager Jack van der Merwe. “We are also in the process of putting together a special purpose vehicle (SPV) to...
SOLAR PANELS The existing buildings in the Coega Industrial Development Zone lent themselves well to rooftop solar panel installations
The Coega Development Corporation (CDC) plans to fit 15 of its buildings, totalling 127 000 m2 of roof space, in the Coega Industrial Development Zone (IDZ), in the Eastern Cape, with solar panels.
The Supreme Court of Appeal’s (SCA’s) November 2014 judgment, ordering steel producer ArcelorMittal South Africa (AMSA) to hand over the 2003 Environmental Master Plan for its Vanderbijlpark steel plant to environmental pressure groups, confirmed the right of civil...
 
 
 
 
 
 
 
 
 
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 $96 Close
Subscribe Now for $96