“The Bilateral Investment Treaty (BIT) policy review is not intended to provide an economic analysis of the South African investment policy, it merely flags this as an issue that would need to be examined in the near future,” said Chief Director of Trade Policy and Negotiations, Randall Williams, as he gave an overview of the Bilateral Investment Treaty (BIT) at the policy workshop that took place at Burgers Park Hotel in Pretoria yesterday.
The review, attended by more than a hundred stakeholders from business, labour, government, local and international institutions, was in keeping with international trends in many developed and developing countries which have undergone or are undergoing a review of their BITs, with a view to informing and updating the executive on the legal implications and impact of BITs on South Africa's developmental agenda in light of emerging international law on the subject matter. “Prior to 1994, the republic had no history of negotiating BITs and the risks posed by such treaties were not fully appreciated at that time. The executive had not been fully apprised of all the possible consequences of BITs,” said Williams.
He also added that the process was undertaken by means of detailed interviews at management level with the various sector desks at the Department of Trade and Industry (dti) and other relevant stakeholders.
Ronald Goodman from Foley Hoag LLP in Washington DC said, “There is currently, a very deep concern about the substantive content of bilateral investment treaties, or BITs."
“BITs as currently drafted, are demonstrably dangerous and obviously restrictive of sovereignty. They are dangerous because they open up states to new liabilities that were never contemplated when the BIT was originally negotiated and signed. Lastly BITs restricts sovereignty especially for developing countries and countries who wish to correct previous social or economic ills by putting a heavy price on some kinds of government regulation,” said Goodman
Bilateral Investment Treaties govern the relationships between the states and foreign investors and any potential breach of such treaties can, therefore, have far reaching legal financial, diplomatic and policy implications for South Africa. International and local experts addressed the audience on topics such as the relevance of BITs, sustainable development, local and international adjudication of disputes.
The dti intends collating the comments received from the public and making recommendations to Cabinet on the South Africa’s future position in respect of BITs.
For further information contact:
Sidwell Medupe
Tel: 012 394 1650
Cell: 073 5226801
E-mail: MSMedupe@thedti.gov.za
Issued by: Department of Trade and Industry
21 August 2009
Source: Department of Trade and Industry (http://www.thedti.gov.za/)
