From Business Day Live

The government’s ending of bilateral trade agreements with European countries in order to increase South Africa’s trade with China and Africa was also to “stabilise” trade with Europe, Goldman Sachs SA MD Colin Coleman said on Tuesday.

South Africa has already ended a bilateral trade agreement with Germany as Trade and Industry Minister Rob Davies moves to “modernise” South Africa’s approach to trade amid criticism from a range of groups — from foreign businesses to credit-rating agencies — that say the move is causing uncertainty over the security of future foreign investment.

Speaking at the inaugural Brand SA Competitiveness Forum in Midrand, Mr Coleman said while the tactics and strategies employed to secure South Africa’s future trade were “beyond my pay grade”, it was important the government did not “send mixed messages” about its intentions for, and approach to, foreign trade.

The European Union is South Africa’s largest trade partner, although the single largest trade partner is China, with a R200bn-a-year trade relationship, followed jointly by the US and Germany, each with a R120bn-a-year relationship, Department of Trade and Industry statistics say.

Mr Davies on Friday published the Promotion and Protection of Investment Bill, which is to replace bilateral treaties designed to protect foreign investors. The comment period has been peppered with criticism.

-Written by Sue Blaine

Read more at bdlive.co.za