Trade and Industry Committee holds workshop on International Obligations in terms of Investment
The Portfolio Committee on Trade and Industry today held a seminar on South Africa’s International obligations in terms of Investment.
The Committee heard that foreign investors have always had to operate under national laws, irrespective of Bilateral Investment Treaties (BITs). Prof Riekie Wandrag, from the Law Faculty at the University of the Western Cape, said not all countries had BITs with each other. Therefore national laws and legislation would apply.
BITs are the exception. If a foreigner enters a jurisdiction of another, she/he must be subject to the rules of that country. BIT’s was dangled just like a candy.” She said this provision in the PPIB was therefore not out of the ordinary.
Ms Xolelwa Mlumbi-Peter, from the Department of Trade and Industry, said South Africa already provided adequate protection for investments. She said in the past the BITs only gave protection to foreign investors.
The PPIB makes provision for Bill provides for the legislative protection of investors and the promotion of investment. It aims to achieve a balance of rights and obligations that apply to all investors, whether local or foreign. The purpose of the Act is, among others, to promote and protect investment in accordance with and subject to the Constitution in a manner that balances the public interest and the rights and obligations of investors.
Dr James Zhan, from the United Nations Conference on Trade and Development, said the PPIB was a step in the right direction and in line with international trends. Presenters expressed some concern that the Bill focus rather on Protection and not on Promotion.
Ms Fubbs said she noted concerns about how much the Bill focused on protection rather than promotion. This issue will be dealt with during the public hearings on the Bill.
During the seminar, the Committee also focused on the Promotion and Protection of Investment Bill (PPIB), which is currently in front of the Committee. Committee Chairperson, Ms Joanmariae Fubbs, said it was clear that the international landscape was changing.
“There is a visible shift,” she added.
For media enquiries or interviews with the Chairperson, please contact:
Rajaa Azzakani
Tel: 021 403 8437
Cell: 081 703 9542
E-mail: razzakani@parliament.gov.za
