South Africa denounces its BIT with Spain

Our Spanish face, Laura Lozano writes that South Africa has sent a written notification to Spain denouncing its Bilateral Investment Treaty (hereinafter BIT)[1] on 23 June 2013. Composed of twelve articles setting out the terms for investment promotion and protection, the BIT between the Kingdom of Spain and the Republic of South Africa came into force on 23 December 1999. The initial treaty period was 10 years with renewals thereafter for periods of two years[2].

According to Article XII (2) each contracting party shall give written notice of termination to the other within six months of the termination date, and South Africa had until 23 June to do so. As is usual practice with BITs, the treaty will continue to be in effect for a further period of ten years for investments made or acquired prior to 23 December 2013.

The decision to cease the renewal of the BITs between South Africa and different EU member states, pursuant to the new BIT policy framework conducted by the South African Department of Trade and Industry, may have negative impacts on already fragile investors.

[1] See, last visit 2 July 2013.

[2] The first period run from 24 December 2009 until 23 December 2011 and the second one, from 24 December 2011 until 23 December 2013.

© Conflict Change Consulting Ltd.  2014