Latest news with #InvestmentAgreement
Arab News
18 hours ago
- Business
- Arab News
Why EU's ties with China are likely to remain tense
Relations between the EU and China last reached a mini-high during Donald Trump's disruptive first presidency, when Beijing and Brussels agreed a Comprehensive Agreement on Investment. However, bilateral ties have not warmed during Trump's second term in the White House, despite the US president threatening to instigate several new trade wars with his tariff policies. Certainly, the mood between the EU and China is generally constructive and both sides are keen to showcase some achievements in relations during this landmark year, which marks the 50th anniversary of bilateral ties. This includes during their upcoming annual summit on July 24, when European Commission President Ursula von der Leyen and European Council President Antonio Costa will hold talks with Chinese President Xi Jinping and Premier Li Qiang. Both sides stress that they have no insuperable conflicts of interest, and instead share common economic and political interests that are deepening. Underneath this high diplomacy, however, growing challenges are chilling relations, including the issue of the war in Ukraine. Take the example of rare earths. This is a topic on which von der Leyen and Costa will this week urge China to end restrictions that require EU-based exporters to secure licenses from Beijing, which controls more than 90 percent of the global processing capacity for these key metals. During the G7 Summit in June, von der Leyen accused China of 'coercion' and 'blackmail' over the measures, asserting that 'no single country should control 80-90 percent of the market for essential raw materials and downstream products like magnets.' On the economic front, China's trade surplus with the EU hit a record high in May, and now stands at about €400 billion ($465 billion). One of the steps the EU has taken in response is to levy tariffs of up to 35 percent on Chinese electric vehicles, citing unfair subsidies. Beijing retaliated with inquiries into the European dairy and brandy sectors. In the face of these proliferating challenges, von der Leyen, Costa, and other top EU officials are trying to build a broader, bloc-wide stance on China. This reflects the fact that Brussels has struggled at times to find common purpose across all 27 EU member states on the issue, especially those such as Hungary that are more sympathetic to Beijing. Worse still, leading EU officials have become increasingly concerned in recent years about whether the nature of China's external interventions in Europe represent a strategy of divide-and-rule in an attempt to undermine the continent's collective interests. The former EU foreign affairs chief, Joseph Borrell, even asserted that Beijing was a 'systemic rival that seeks to promote an alternative model of governance' to that of Europe. Von der Leyen said more recently that 'China has an entirely different system' with 'unique instruments at its disposal to play outside the rules.' Brussels has sought to unite the bloc around a stronger policy toward China. Andrew Hammond The backstory to this is that Europe is becoming an increasingly important foreign policy focal point for Beijing, economically and politically. The rising superpower had generally enjoyed growing influence across much of the region, at least until the COVID-19 pandemic. In the past five years, however, since the pandemic and Russia's invasion of Ukraine, relations have become chillier. This has affected issues such as climate cooperation, with doubts reported about whether Beijing and Brussels will sign a joint climate action pledge during their upcoming summit, despite the precedent of previous important collaboration in this area. Brussels has therefore sought to unite the bloc around a stronger policy toward China, with von der Leyen taking the lead on the issue, even though the role of European Commission president does not include any formal foreign policy mandate. While the EU still deeply values its relationship with China, the direction of travel for policy on Beijing appears to be moving in a more hawkish direction. Even on issues in which breakthroughs have been made with China over the past five years, such as the Comprehensive Agreement on Investment in 2020, ratification of this key economic deal has stalled for years in the European Parliament as a result of deteriorating relations. A central challenge for von der Leyen, however, remains the splits within the 27-member bloc regarding views on Beijing. It is too simplistic to characterize this as an East-West dichotomy within the region, not least because Hungarian Prime Minister Viktor Orban is perhaps China's biggest cheerleader in the EU. There are nonetheless differences in outlook, primarily between hawkish Eastern European nations such as the Czech Republic, Poland, and Lithuania, versus Western counterparts such as France and Spain that do much more bilateral business with China. The positions of those Western European nations can be particularly problematic for Brussels, given that both Paris and Madrid want extensive economic engagement with China to continue. The longstanding, deep business ties between Paris and Beijing are widely documented, so it is no surprise that President Emmanuel Macron is sometimes more equivocal than von der Leyen on the issue of China. During a joint visit with her to Beijing in 2023, the French president raised eyebrows in Europe by taking a large business delegation with him. He also utilized the language of economic reciprocity, rather than the European Commission president's preferred choice of 'derisking,' and did not appear to put significant pressure on China regarding its support for Russia in Ukraine. This challenging context underlines why the upcoming summit might underdeliver on even the low expectations that surround it. Overall EU relations with China are likely to remain chilly for the foreseeable future, and could yet go into a deep freeze during von der Leyen's second term as European Commission president. • Andrew Hammond is an associate at LSE IDEAS at the London School of Economics.
Arabian Business
09-05-2025
- Business
- Arabian Business
UAE, Bahrain enforce investment protection pact to strengthen bilateral economic ties
The UAE and Bahrain kicked off the implementation of their bilateral Investment Promotion and Protection Agreement. The agreement, which came into effect on Thursday, May 8, follows the completion of the required legal procedures by both sides, in accordance with the provisions of the agreement. The move reflects the strong fraternal ties and the growing economic partnership between the two brotherly nations and reaffirms their commitment to enhancing investment cooperation in a way that serves the interests of investors from both sides and supports the sustainable development goals of both countries, the two countries said. The agreement provides a comprehensive legal framework that ensures full protection for investments and strengthens mutual investor confidence by guaranteeing fair and equitable treatment and providing clear mechanisms for dispute resolution. In light of the rapid developments in the digital economy, the agreement underscores the importance of enhancing cooperation between the two countries in areas related to digital trade, including data protection, privacy, cybersecurity, intellectual property rights, and electronic signatures and authentication. It also promotes the exchange of best practices and the development of technical capacities. Shaikh Salman bin Khalifa Al Khalifa, Bahrain's Minister of Finance and National Economy, said the Kingdom of Bahrain places great importance on opening new avenues of cooperation with the United Arab Emirates, in light of the strong and longstanding fraternal relations between the two countries. He said the bilateral agreements between the two brotherly nations play a vital role in advancing joint cooperation in line with the visions and aspirations of the top leaderships of the two countries. He also highlighted his country's continued efforts to strengthen investment cooperation at the regional and international levels, having signed nearly 40 agreements to promote and protect investments. Mohamed bin Hadi Al Hussaini, UAE Minister of State for Financial Affairs, said the agreement's entry into force reflects the shared will to deepen bilateral economic relations, and marks a new milestone on the path toward greater Gulf economic integration. He added that it also reflects a flexible and forward-looking response to changes in the regional and global economic landscape, particularly in light of current global challenges that require intensified efforts to foster a more stable and attractive investment environment. The minister said the agreement will contribute to enhancing the competitiveness of both economies, besides opening new horizons for high-quality investments, particularly in priority economic sectors. He also said the agreement serves as a foundation for expanding the strategic partnership between the two countries by encouraging mutual investments, facilitating capital flows, and providing an investment environment based on transparency, fairness, and institutional integration.
Zawya
08-05-2025
- Business
- Zawya
UAE, Bahrain announce entry into force Investment Promotion and Protection Agreement
ABU DHABI - The United Arab Emirates and the Kingdom of Bahrain announced the entry into force of the Investment Promotion and Protection Agreement, signed between the governments of both countries, effective 8th May 2025. This follows the completion of the required legal procedures by both sides, in accordance with the provisions of the agreement. This step reflects the strong fraternal ties and the growing economic partnership between the two brotherly nations and reaffirms their commitment to enhancing investment cooperation in a way that serves the interests of investors from both sides and supports the sustainable development goals of both countries. The agreement provides a comprehensive legal framework that ensures full protection for investments and strengthens mutual investor confidence by guaranteeing fair and equitable treatment and providing clear mechanisms for dispute resolution. In light of the rapid developments in the digital economy, the agreement underscores the importance of enhancing cooperation between the two countries in areas related to digital trade, including data protection, privacy, cybersecurity, intellectual property rights, and electronic signatures and authentication. It also promotes the exchange of best practices and the development of technical capacities. This represents a qualitative step towards creating a modern and advanced investment environment that aligns with the aspirations of both countries in supporting digital transformation and enhancing economic competitiveness. Sheikh Salman bin Khalifa Al Khalifa, Minister of Finance and National Economy, affirmed that Bahrain places great importance on opening new avenues of cooperation with the UAE, in light of the strong and longstanding fraternal relations between the two countries. He noted that bilateral agreements between the two brotherly nations play a vital role in advancing joint cooperation in line with the visions and aspirations of His Majesty King Hamad bin Isa Al Khalifa of Bahrain and President His Highness Sheikh Mohamed bin Zayed Al Nahyan, who embody a model of fraternal relations rooted in deep ties and a shared history. He added that Bahrain continues to strengthen investment cooperation at the regional and international levels, having signed nearly 40 agreements to promote and protect investments, which contribute to economic growth and open new doors to promising opportunities. For his part, Mohamed bin Hadi Al Hussaini, Minister of State for Financial Affairs, affirmed that the agreement's entry into force reflects the shared will to deepen bilateral economic relations, and marks a new milestone on the path toward greater Gulf economic integration. He added that it also reflects a flexible and forward-looking response to changes in the regional and global economic landscape, particularly in light of current global challenges that require intensified efforts to foster a more stable and attractive investment environment. He highlighted the importance of continued coordination between the relevant authorities in both countries to activate and follow up on the implementation of the agreement to ensure the achievement of its intended objectives. Al Hussaini noted that the agreement will contribute to enhancing the competitiveness of both economies and opening new horizons for high-quality investments, particularly in priority economic sectors. He further emphasised that the agreement serves as a foundation for expanding the strategic partnership between the two countries by encouraging mutual investments, facilitating capital flows, and providing an investment environment based on transparency, fairness, and institutional integration. He concluded that the agreement is one of the key pillars that reflects the shared vision of both nations for a diversified, competitive, and innovation-driven economy.
Zawya
08-05-2025
- Business
- Zawya
UAE and Bahrain announce entry into force of the investment promotion and protection agreement
Abu Dhabi, The United Arab Emirates and the Kingdom of Bahrain announced the entry into force of the Investment Promotion and Protection Agreement, signed between the governments of both countries, effective Thursday, 8 May 2025. This follows the completion of the required legal procedures by both sides, in accordance with the provisions of the agreement. This step reflects the strong fraternal ties and the growing economic partnership between the two brotherly nations and reaffirms their commitment to enhancing investment cooperation in a way that serves the interests of investors from both sides and supports the sustainable development goals of both countries. The agreement provides a comprehensive legal framework that ensures full protection for investments and strengthens mutual investor confidence by guaranteeing fair and equitable treatment and providing clear mechanisms for dispute resolution. In light of the rapid developments in the digital economy, the agreement underscores the importance of enhancing cooperation between the two countries in areas related to digital trade, including data protection, privacy, cybersecurity, intellectual property rights, and electronic signatures and authentication. It also promotes the exchange of best practices and the development of technical capacities. This represents a qualitative step towards creating a modern and advanced investment environment that aligns with the aspirations of both countries in supporting digital transformation and enhancing economic competitiveness. His Excellency Shaikh Salman bin Khalifa Al Khalifa, Minister of Finance and National Economy, affirmed that the Kingdom of Bahrain places great importance on opening new avenues of cooperation with the United Arab Emirates, in light of the strong and longstanding fraternal relations between the two countries. His Excellency noted that bilateral agreements between the two brotherly nations play a vital role in advancing joint cooperation in line with the visions and aspirations of His Majesty King Hamad bin Isa Al Khalifa, King of the Kingdom of Bahrain, and his brother His Highness Sheikh Mohamed bin Zayed Al Nahyan, President of the United Arab Emirates—may God protect them both—who embody a model of fraternal relations rooted in deep ties and a shared history. He added that the Kingdom of Bahrain continues to strengthen investment cooperation at the regional and international levels, having signed nearly 40 agreements to promote and protect investments, which contribute to economic growth and open new doors to promising opportunities. For his part, His Excellency Mohamed bin Hadi Al Hussaini, Minister of State for Financial Affairs, affirmed that the agreement's entry into force reflects the shared will to deepen bilateral economic relations, and marks a new milestone on the path toward greater Gulf economic integration. He added that it also reflects a flexible and forward-looking response to changes in the regional and global economic landscape, particularly in light of current global challenges that require intensified efforts to foster a more stable and attractive investment environment. His Excellency highlighted the importance of continued coordination between the relevant authorities in both countries to activate and follow up on the implementation of the agreement to ensure the achievement of its intended objectives. He noted that the agreement will contribute to enhancing the competitiveness of both economies and opening new horizons for high-quality investments, particularly in priority economic sectors. He further emphasised that the agreement serves as a foundation for expanding the strategic partnership between the two countries by encouraging mutual investments, facilitating capital flows, and providing an investment environment based on transparency, fairness, and institutional integration. His Excellency concluded that the agreement is one of the key pillars that reflects the shared vision of both nations for a diversified, competitive, and innovation-driven economy.
Zawya
21-04-2025
- Business
- Zawya
Why Base Titanium is not selling its assets to Kenyans?
Base Titanium, which closed its mining operations in Kenya last December, has hired South Africa-based auctioneer WH Auctions to sell its movable assets in Kwale. The auction, scheduled for May 14-15 through webcast bidding, has excluded Kenyan companies and will feature at least 300 lots of mining, construction, plant and electrical equipment, with lots 1 to 199 on the first day and lots 200 to 325 on the second day.'All assets are located on-site at Base Titanium's mine in Kwale, Kenya, and viewing is available strictly by appointment only to arrange a site visit,' the auctioneer said in the announcement. No Kenyan company is eligible to participate in the bidding as all assets are for export only, and buyers are responsible for managing and paying for all export permits, customs clearance, logistics and transport from the site. All payments will be made in US dollars.'This is a rare opportunity for global buyers in Africa, the Middle East, Asia and beyond to access a large, well-curated fleet of industrial equipment that is rarely available on the open market,' the auctioneer said. Base Titanium defended the exclusion of local buyers, saying they have the right to choose who they sell to.'Whilst some assets are being sold, both domestically and internationally, in all circumstances, it is important to note that these assets are private property, and Base Titanium has the constitutional right to dispose of them as it sees fit,' the firm told The EastAfrican.'The company wishes to clarify that, under the Investment Agreement with the Kenyan government, specialised mining and processing equipment imported for the Kwale Mine was exempt from customs duty, excise duty, and VAT. These exemptions are designed to support the large capital investment required to build projects like the Kwale Mine and are not unique to the mining sector.'In line with applicable legislation, selling equipment imported under such exemptions domestically triggers a requirement to pay duty. This would require the Kenya Revenue Authority to assign a value to each item and then calculate the applicable duties owing before authorising local disposal. This process often results in valuations that make the sale of these assets in the domestic market uneconomical.'To ensure compliance and meet closure timelines, Base Titanium has opted to sell certain assets to the international market through an international auction managed by a trusted African leader in asset disposal and extensive mine sector experience. This approach aligns with market availability, as demand for equipment to service the mineral sands industry lies overseas,' it added. Base Titanium, a Kenyan subsidiary of Australian firm Base Resources, has been operating in Kwale for over a decade and concluded its mining operations in December 2024 due to the depletion of commercially viable ore. The company has been acquired by an American firm, Energy Fuels, in a cash-and-stock deal valued at $240 million. Energy Fuels is a uranium and critical minerals producer, and the deal is said to be strategic in creating 'a global critical minerals business.'The company made its last bulk shipment in Mombasa in February, marking the end of 11 years of titanium ore export from Kenya. Base Titanium has been Kenya's biggest mineral exporter since it entered the country, and the company's exploration and future investment decisions will, however, be determined by the government's actions on the issuance of licences. Base accounts for 65 percent of Kenya's mineral exports. In 2023, it paid about $15.5 million in mineral royalties to the government.
