Transcript Regulating & Promoting FDI in the USA

Regulating & Promoting FDI in
the USA
Katie Praske
ITRN 603
U.S. Legislation, Extraterritoriality & Global
Competitiveness
April 17, 2013
Executive Summary
Foreign direct investment (FDI) is of vital importance to the US
economy. The US remains the world’s largest receiver of FDI, but faces
competition for investments with developed and developing nations.
The governments of those nations are promoting investment in their
countries, as state governments and the federal government are
promoting investment in the USA. SelectUSA was established in 2011
“as a government-wide initiative to encourage and facilitate business
investment in the United States.”
In order to grow FDI, it is critical that the US regulations impacting FDI
are aligned with the goals of initiatives such as SelectUSA. Regulations
put in place with the best of intentions, to protect national security or
generate tax revenue, can serve to prevent or discourage the
investment the country is working so hard to promote. These
regulations must be reviewed with consideration for their impact on
market access.
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Why FDI Matters to the USA
• $174.7 billion: Amount of FDI in the U.S. in 2012
• 5.3 million: Workers employed by U.S. affiliates of
foreign firms in the U.S.
• $55 billion: Amount U.S. affiliates of foreign firms
reinvested into the U.S. economy
• 36%: U.S. affiliates of foreign firms pay on average 36%
higher than the economy-wide average
• 18%: U.S. affiliates of foreign firms generate 18% of all
U.S. exports
• $26.6 billion: U.S. affiliates of foreign firms pay $26.6
billion in federal corporate income tax
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SelectUSA
• Established by an Executive Order (13577) issued June 15, 2011.
http://www.whitehouse.gov/the-press-office/2011/06/15/executiveorder-selectusa-initiative
• SelectUSA is designed to complement the activities of our states—the
primary drivers of economic development in the United States.
• Select USA Services: Business Solutions for Investors, Ombudsman,
Advocacy, Single Location Promotion, Facilitated Investment Mission and
Economic Development Organization Counseling.
• Ambassador Locke, “I want to make it very clear that America welcomes
Chinese investment.” http://beijing.usembassy-china.org.cn/20120924amb-locke-chengdu.html
Other Initiatives
• Make it in America Challenge – DOC and DOL award funds to communities
to prepare them for investment.
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Issues
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National security concerns
Fear of job loss due to mergers & acquisitions
Corporate taxes
Visas
Infrastructure
Labor
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Sources
• http://www.stlrcga.org/Documents/library/Aa
ron_Brickman_presentation_3.10.10.pdf
• http://www.investmentpolicycentral.com/con
tent/barriers
• http://selectusa.commerce.gov/investmentincentives
• http://ofii.org/
• http://www.vcc.columbia.edu/
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Sources (cont.)
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http://www.vcc.columbia.edu/pubs/documents/FaganFinalEnglish_001.pdf
http://en.wikipedia.org/wiki/Invest_in_America
http://www.oecd.org/unitedstates/34383483.pdf
http://www.investmentpolicycentral.com/sites/investmentpolicycentral.drupalgar
dens.com/files/Importance%20of%20TPP%20Provisions%20Disciplining%20Perfor
mance%20Requirements.pdf
http://www.fas.org/sgp/crs/misc/RS21857.pdf
http://ehis.ebscohost.com.mutex.gmu.edu/ehost/pdfviewer/pdfviewer?vid=3&sid
=88dd50be-8cbd-40dd-b073-15c30f09226e%40sessionmgr110&hid=116
http://www.commerce.gov/news/acting-secretaryspeeches/2012/09/28/remarks-council-foreign-relations-dialogue-increasing-us-i
http://beijing.usembassy-china.org.cn/20120924-amb-locke-chengdu.html
http://www.whitehouse.gov/the-press-office/2011/06/15/executive-orderselectusa-initiative
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