55. The use of narrow definitions also restricts the range of products that bans are supposed to cover. For instance, "iron and steel" is usually interpreted as excluding iron ore and ferro-alloys, both of which are major South African exports. Japan bans the import of South African iron and steel but imports large quantities of iron ore. The United States continues to import South African uranium hexafluoride which it considers as falling outside its ban on "uranium ore and oxide". 56. Barter, counter-trade and joint marketing are on the rise as companies and the Government of South Africa take advantage of loopholes in regulations that do not prevent locally registered companies from trading in sanctioned goods in third countries or on the high seas. Sanetions-busting is also a result of the expansion of South African investment abroad (see Annex). Europe is the main destination, v/ith 34,8 per cent going to EEC countries and 3.2 per cent to "other" Bkiropean countries mainly Switzerland. Outward investment influences key markets for South African goods and improves access to new technologies, essential commodities and finance, all of v/hich are of strategic importance to the survival of the apartheid régime. The Commonwealth agreement of August 1986 refers only to majority-owned South African companies and to those based in South Africa. Luxembourg and Switzerland have been chosen by large South African conglomerates because they do not impose sanctions and because their legislation allow for secrecy with regard to corporate activities. 57. As regards foreign direct investment, most bans apply only to new direct investments and, with the exception of Nordic countries, exclude "non-equity" links. As a result, foreign companies can continue doing business with South Africa simply by shifting from earning profits directly to earning them indirectly. In fact, in some cases disinvestment has enabled companies to 
**Analysis**
The text appears to discuss the ways in which South Africa circumvents economic sanctions imposed by various countries. It highlights the use of narrow definitions, loopholes in regulations, and creative business strategies to continue trading with foreign countries, including those that impose sanctions. The text also touches on the impact of South African investment abroad on its economy and the apartheid regime.

**Category**
International trade, Industry