• 10 tips to find bargains

    Susan Erasmus gives advice on how bargain hunters can get the most bang for their buck.

  • Inside Labour

    Labour's bitter breaches need to be seen in historical context, says Terry Bell.

  • Rich getting richer

    Economists differ on how to tackle the chasm between rich and poor, says Leopold Scholtz.

Loading...
See More

Davies: SA to stay away from treaties

Jul 26 2012 17:44 Sapa

Related Articles

Davies: African industrialisation crucial

Davies upbeat about SA auto industry

Davies: Switzerland key to SA investment

SA, Saudi Arabia create holding company

Consumer commissioner loses court bid

Davies warns of stricter BEE codes

 

Johannesburg - South Africa will avoid entering into bilateral investment treaties (BITs) in future, except where there are compelling economic and political circumstances, Trade and Industry Minister Rob Davies said on Thursday.

He was speaking at the local launch of the UN Conference on Trade and Development's investment policy framework for sustainable development, at Wits University.

"Cabinet instructed that all first generation BITs which South Africa signed shortly after the democratic transition in 1994... should be reviewed with a view to termination."

They could possibly be re-negotiated once a model for bilateral treaties had been developed.

Cabinet's decision followed a three-year review of these treaties, which was concluded in 2010. An inter-ministerial committee would oversee investment, international relations, and economic development.

While foreign direct investment could make a positive contribution to sustainable development, the benefits to host countries were not automatic.

Regulations needed to balance investors' economic requirements with the host country's need to ensure positive contributions to sustainable development.

Benefits such as technology transfer, skills development, research, and local economic linkages had to be purposefully built into the investment regime and not taken for granted.

South Africa would strengthen its domestic legislation in respect of the protection offered to foreign investors by codifying typical treaty provisions into law.

The new approach aimed to balance investors' rights and protection, with constitutional obligations and government policy space. This corresponded to global trends.

"A new generation of investment policies has emerged, with governments pursuing a broader and more intricate development policy agenda within a framework that seeks to maintain a favourable investment climate," Davies said.

"New generation investment policies now place inclusive growth and sustainable development at the centre of efforts to attract and benefit from investment."

rob davies

 
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
5 comments
Add your comment
Comment 0 characters remaining
 

Company Snapshot

Brought to you by BizNews

More from BizNews

We're talking about:

SMALL BUSINESS

Johannesburg has been selected to host the Global Entrepreneurship Congress in 2017. "[The congress] will ensure that small business development remains firmly on the national agenda and the radar screen of all stakeholders, the Small Business Development minister said.
 
 

10 most expensive cars In the world

This is car porn at its best!

 
 

Luxury living

Seven of the most expensive children's toys ever made
5 millionaires turned murderers
The youngest billionaires in the world and how they made it
Watch: Flying first class has never been this luxurious!

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

How do you see your boss? He/sheis:

Previous results · Suggest a vote

Loading...