Review the investment pacts to your advantage, said the EAC states – Magazines

Dar es Salaam. Many investment agreements are not in favor of Tanzania, say stakeholders

That is why foreign direct investment (FDI) in Tanzania has declined for the third year in a row, they point out .

The guidelines of a workshop for development actors in the East African Community (EAC)

They called on Tanzania to review the treaties of investment to have a win-win situation.

Laws and policies should keep in mind what Tanzania wants According to figures from the United Nations Conference on Trade and Development, FDI inflows fell 24.4 percent % last year to 1.18 billion dollars (about 26 trillion shillings), down from the level of 2015.

Ms. Jane Nalunga, director of the office of the Institute of l & rsquo; # 39; Information and Negotiations (Seatini), said that foreign investors enjoyed many legal rights without having to worry about the corresponding responsibilities.

Pakistan signed the first bilateral investment treaty (BIT) in the world without knowing that it marked a new era as many countries have followed the example since then. Currently, the international legal system governing international investment flows is shaped by a network of about 3,000 BITs and other International Investment Agreements (IIAs), according to the Dutch organization Both. Ends, which focuses on international trade and investments.

"This system no longer serves its purpose and must be profoundly changed," Nalunga said.

"Not only is it doubtful that IIAs encourage international investment flows for sustainable development, but their current generation has also failed to address the unequal balance of rights and responsibilities between countries. foreign investors and host countries. "

In recent years, a large number of countries have been the subject of costly claims for economic policy, financial stability, and the environment and health. According to the senior policy officer at both ends, Burghard Ilge

this reality in particular the fact that 60% of all investor-state dispute settlement claims are against developing countries, has serious impacts on poverty reduction, inclusive growth and sustainable development. This, he says, has prompted many governments to rethink and review their current BIT regime

Serious questions, he said, are raised by citizens and their representatives about the legitimacy and effectiveness of regime of BITs. [19659002] The reform of the multi-level investment treaty regime calls for collective thinking and constructive engagement by all stakeholders: governments, intergovernmental organizations, the private sector, civil society, think tanks and universities. It is imperative to end bilateral investment treaties because of the higher conventional obligations under the UN Charter and the Human Rights Convention, suggested Mr. Ilge

. Adelardus Kilangi told Parliament that his office had begun reviewing contracts signed by Tanesco and Songas.

Last year, President Joh n Magufuli approved bills that require the government to own at least 16 percent of mining projects

. Magufuli reiterated that no new mining concession would be issued until Tanzania put things in order and the government However, according to private sector development specialist Solomon Baregu, the change in BITs is not enough because a strong legal and regulatory framework is needed.

"When signing the agreements, the government should understand that it is entering into an agreement.It should be strong in denial by providing investors with conditions on what we need, for national interests" Mr. Baregu (19659011), "Increasing the Transparency of Our Treaties, There Should be Follow-Up Mechanisms to Make the Treaties Work for the Public."

Investors, according to Mr. Baregu, should have a deeper economic impact on the country and especially on everything related to job creation and technology transfer. 19659002] Mr. Jared Maranga, Tax Policy Officer of the Network for Tax Justice in Africa, was of the opinion that the government should use its power to ensure that the country benefits from an investment.

the government has the right to get what it negotiates and not what it deserves. We need to be strong but not ridiculous, "said Maranga.To make this work, Kigali, independent consultant in international trade negotiations in Rwanda, John Kanyangoga, called for a friendly tax system

" Taxes should be fine calculated. "

Nathan Irumba, Executive Director of Seatini and Rules That Support Multinational Enterprises

" If we want to record sustainable development, the legal system should be friendly. It should work properly, "said Irumba. [ad_2]
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