Economies Policy - Invest in America (below)
On May 10, 2007 the White House issued a new "Open Economies"
policy statement and press release as repeated below for reference.
This follows the earlier announcement on March 7, 2007 of
a new "Invest in America" initiative at the US Department of Commerce.
Among other things, this will cause the attraction of
foreign direct investment projects to become one of the priorities of the US
Foreign & Commercial Service (FCS) officials of the International Trade
Administration (ITA) and other diplomats serving at US embassies and
consulates around the world.
In the past, the FCS officers were tasked primarily with
US export promotion and other work related to trade policies, rather than
the attraction of foreign investment.
This also establishes the policy framework, authorization,
and new direction for Commerce officials based in the USA to collaborate
more closely with state and local economic development agencies, government
leaders, and business leaders as they compete for foreign investment into
Under Secretary of International Affairs Franklin (Frank)
Lavin at the US Department of Commerce is in charge of this initiative,
which is led by Director Aaron Brickman. This policy has also been
promoted recently in speeches by Treasury Secretary Hank Paulson and others.
In short, this new Policy Statement establishes the
strategic direction by the President for the various government offices
involved to work together on the policy implementation details since foreign
direct investment is related to many other national interests.
One factor behind this initiative seems to be concern
about the potential misperception in other countries about how open the US
economy is to foreign investment after highly publicized controversies
during the 2006 election cycle about the Dubai ports deal and the
interagency review process known as CFIUS - Committee on Foreign Investment
in the United States. CFIUS routinely screens foreign direct
investments for considerations such as national security risks, particularly
when such investments are led or potentially directed by foreign
See also: recent news
below about Invest in America
- and related media coverage and
America home page on the
US Department of Commerce - International Trade Administration website
A new website
has been set up for this initiative.
They have also published a useful
list of state contacts for reference by potential foreign investors,
such as for executives who may be planning to set up or acquire new business
operations anywhere in the USA..
May 10, 2007 White House press release on the Open
Economies policy - repeated below - or link to the
original press release
May 10, 2007 Open Economies policy statement -
March 7, 2007
US Department of Commerce press release about the launch of the Invest
in America initiative - repeated below
US Department of Treasury - May 10
press release repeated below - or refer to this
sheet about the Open Economies policy at
www.treas.gov or their press room
for other recent releases.
Development Administration at the US Department of Commerce works with
state and local economic development agencies on various types of
initiatives to improve their communities.
Other Information Sources
Refer to our unique
Search: Americas tools on this
website to easily find content from state and local economic development
websites in the USA, Canada, or Mexico.
Invest in the USA - our own directories list state
and local economic development agencies in all US states, and many related
information resources including professional service providers, as part of the global sources and content we openly
share through www.gdi-solutions.com
for the benefit of business executives and their professional advisors
anywhere. We also maintain a directory of various
business forums and
philanthropic groups with interests related to this niche, as well as links
to more than 25,000 other sources worldwide.
USA Search - our tool at
searches websites of state economic development agencies. There are
also several other tools to support research into places to do business
worldwide, such as
Europe Search and
fDi Links - is our tool to easily search back
issues of fDi - Foreign Direct Investment magazine - published by the
Financial Times group, which reaches C-level executives worldwide about
the globalization of business, including strategic business location
selection issues. This includes global research work such as the
North American Cities
of the Future awards. An independent panel of experts
ranks participating cities of all sizes as potential places to do business
according to common site selection criteria reflecting more than 60 facts
about their areas. The April 2007 issue of fDI included an article
about the CFIUS review process and the expected changes for the USA to try
to attract foreign investment.
The White House - Press
Release - May 10, 2007
White House News -
Open Economies Policy Statement
Office of the Press Secretary
May 10, 2007
President Bush's Statement on Open Economies
White House News
The United States has a longstanding commitment to open economies that
empower individuals, generate economic opportunity and prosperity for all,
and provide the foundation for a free society. Economic freedom, supported
by the rule of law, reinforces political freedom by encouraging and
supporting the free flow of ideas. To continue the advance of liberty and
prosperity, my Administration will work vigorously to promote open
investment policies and free trade on a level playing field.
A free and open international investment regime is vital for a stable and
growing economy, both here at home and throughout the world. The threat of
global terrorism and other national security challenges have caused the
United States and other countries to focus more intently on the national
security dimensions of foreign investment. While my Administration will
continue to take every necessary step to protect national security, my
Administration recognizes that our prosperity and security are founded on
our country's openness.
As both the world's largest investor and the world's largest recipient of
investment, the United States has a key stake in promoting an open
investment regime. The United States unequivocally supports international
investment in this country and is equally committed to securing fair,
equitable, and nondiscriminatory treatment for U.S. investors abroad. Both
inbound and outbound investment benefit our country by stimulating growth,
creating jobs, enhancing productivity, and fostering competitiveness that
allows our companies and their workers to prosper at home and in
international markets. My Administration is committed to ensuring that the
United States continues to be the most attractive place in the world to
invest. I urge other nations to join us in supporting an open investment
policy and protecting international investments.
My Administration is also committed to advancing free and fair trade in
multilateral, regional, and bilateral negotiations. We will work
aggressively to conclude the World Trade Organization's Doha Development
Agenda negotiations and to secure congressional approval of the free trade
agreements with Colombia, Panama, Peru, and South Korea. The prospects for
the Doha Development Agenda negotiations to produce significant new economic
opportunities, particularly in developing countries, demand that we do
everything possible to reach an outcome that creates new trade flows and
strengthens global development.
Bush's Policy Statement on Open Economies
In advancing open markets, the United States will:
- Reinforce the principle that a domestic climate conducive to foreign
investment strengthens national security. Meeting the challenges of a
post-9/11 world need not require securing one at the expense of the other.
The United States recognizes that growing inflows of foreign investment are
necessary to expand levels of employment, innovation, and competitiveness in
this country. Only those safeguards that are clearly necessary to
protect our national security should be maintained.
(Ed. note - emphasis added)
target unreasonable and discriminatory barriers to investment. The United
States encourages a broad acceptance of the national-treatment principle in
all countries and places a premium on the protection of U.S. investments
abroad. The United States opposes measures that distort international
investment flows, including trade-related or other performance requirements,
discriminatory treatment of foreign investment, and expropriation without
compensation. In turn, when countries promise to protect investment and
eliminate such distortions, investors must have the ability to enforce those
binding promises in neutral international settings that are free from the
political intervention of governments. Further, countries need to be
responsive to the needs of investors for access to innovative cross-border
financial services. The United States will continue to allow foreign
investors open and fair access to investment opportunities under our
statutes and regulations and in accordance with international law, and will
continue to welcome investment through programs such as the Invest in
- Work with our partners in the WTO to
strengthen the rules-based trading system so that it continues to promote
open markets, trade reform and new opportunities for development and growth.
My Administration is committed to completing the Doha Development
Round with an agreement that opens markets for goods and services,
ensures reform of agriculture and strengthens WTO rules, including in key
areas such as trade facilitation. The predictability, certainty, and
transparency of the system enhance opportunities for international
investment by building investor confidence.
- Promote an international environment in which international investment can
make the greatest contribution to the development process. The United States
has initiated the Millennium Challenge Account, which assists
developing countries that create and maintain sound policy environments,
including governing justly, investing in people, and encouraging economic
freedoms. Through our bilateral and multilateral economic assistance
programs, the United States will continue to explore ways to increase both
public and private capital flows and support international investment in the
developing world. As countries continue to adopt free market principles and
democratic reforms, international investment is necessary to nurture
market-oriented development and reduce debt service burdens. Economic
freedom is one of the single greatest antidotes to poverty worldwide, and a
positive link exists between the liberalization of investment flows and
greater international trade.
America announcement - US Dept. of Commerce
policy - US Dept. of Treasury
For Immediate Release:
March 7, 2007
Contact: Charlie Skuba/Matt
COMMERCE TO LAUNCH NEW FEDERAL
INITIATIVE TO ATTRACT FOREIGN INVESTMENT
U.S. Commerce Under Secretary for International Trade
Frank Lavin today announced the creation of a new U.S. Government Invest in
America initiative, housed in the International Trade Administration, which
will promote the United States as a destination for foreign investment. This
initiative will be the primary U.S. Government mechanism to manage inward
“The United States welcomes foreign investment and the
jobs and prosperity it creates here,” said Lavin. “We are seeing increasing
global competition for investment flows and we need to make sure that
international investors understand the unique advantages of the United
States, including the best workforce in the world.”
Commerce’s Invest in America initiative will highlight the
advantages of investing in the United States. Investment from foreign
subsidiaries employs more than 5 million American workers. U.S. subsidiaries
also spent $29.9 billion on research and development activities in the
United States in 2005.
The Invest in America initiative will have three key
|Outreach to the international investment community
|Serve as an ombudsman in Washington, D.C., for the
concerns of the international investment community as well as work on
policy issues that affect the attractiveness of the United States to
foreign investment |
|Supporting state and local governments engaged in
foreign investment promotion |
The initiative will also include the creation of a task
force within the International Trade Administration charged with the
responsibility of educating and coordinating the efforts of the 2,300 ITA
employees in offices around the world on inward foreign investment.
The Commerce Department’s International Trade
Administration is responsible for developing U.S. trade policy, identifying
and resolving market access issues, administering U.S. trade laws, enhancing
the global competitiveness of the U.S. manufacturing and services sectors,
and coordinating U.S. trade advocacy efforts on behalf of U.S. business.
For additional information regarding the Invest in America
initiative, please visit
There is a related Wikipedia entry at
May 10, 2007 - US Department of Treasury
An Open Economy is Vital to United States Prosperity
Today, President Bush reaffirmed America's continuing commitment to
advancing open economies at home and abroad, including open investment and
"The United States has a longstanding commitment to open economies that
empower individuals, generate economic opportunity and prosperity for all,
and provide the foundation for a free society. . . . A free and open
international investment regime is vital for a stable and growing economy,
both here at home and throughout the world."
- President George W. Bush
Focusing on the benefits of open investment, Secretary of the Treasury Henry
M. Paulson Jr. will moderate a panel discussion on the gains to the United
States economy from foreign investment here.
"Foreign investment in the United States strengthens our economy, improves
productivity, creates good jobs, and spurs healthy competition. Americans
have prospered as foreign companies have put their money to work here."
- Secretary Henry M. Paulson Jr.
Foreign Direct Investment (FDI) in the United States Creates High-Paying
Foreign companies in the U.S. employed more than 5 million U.S. workers in
2005, providing 4.5% of all private sector employment in the United States.
Manufacturing jobs accounted for 33% of the jobs created
by foreign companies in the U.S. (2004 data). The manufacturing sector
accounts for just 12% of overall U.S. private sector employment. Thus, FDI
is disproportionately bolstering this important sector.
An additional 4.6 million U.S. jobs indirectly depend on
foreign investment in the U.S. (2005 data). Foreign companies in the U.S.
buy 80% of their inputs from U.S. companies. This additional business
indirectly supports almost as many U.S. jobs as FDI creates directly.
Compensation at foreign companies in the U.S. is on
average 30% higher than the U.S. national average. Foreign-owned firms paid
U.S. workers an average of $63,428 in 2004.
Foreign Direct Investment in the United States
Strengthens Our Economy
Foreign firms in the U.S. account for 5.7% of U.S. economic output, as well
as 10% of all investment in plant and equipment in the United States.
Foreign firms in the U.S. re-invested $48.6 billion (45% of their income)
back into the U.S. economy in 2004. This investment furthers innovation and
promotes economic growth.
Foreign firms generate 19% of U.S. exports ($153.9 billion
in 2006). This contribution is greater than their overall percentage of U.S.
economic output, which means they are doing more than their share to help
improve the U.S. trade balance.
Foreign firms in the U.S. generate a disproportionate
share of national R&D spending (13%, totaling $29.9 billion). This spending
strengthens U.S. global competitiveness in pharmaceuticals, high-tech, and
other key sectors and produces innovative products that help to improve our
standard of living.
The economic benefits generated by inflows of foreign
capital help strengthen economic leadership. In the late 1980s and early
1990s, some pointed with alarm to Japanese purchases of U.S. assets, fearing
they foreshadowed the Japanese overtaking our economic leadership. Twenty
years later, the resulting jobs and economic growth show those fears were
Maintaining U.S. Competitiveness in Attracting FDI
Requires Renewed Commitment
At $1.9 trillion, the total stock of FDI in the United States in 2005 was
equivalent to 15% of U.S. GDP. Foreign investment in the U.S. is the
ultimate vote of confidence in our economy. It signals a long-term belief in
the strength of our markets and the skill of our workforce.
In the last few years, the United States has not received
as high a share of total worldwide FDI as it did before 2000. This trend
could be due to the growth of opportunities in emerging markets, burdensome
U.S. legal, regulatory and corporate tax regimes, or the misperception that
the United States is no longer open to foreign direct investments.
However, this trend is cause for some concern. In 2000,
foreign firms directly employed 5.7 million people in the U.S. (5.1% of the
private sector workforce) and indirectly supported 6.5 million more jobs. In
2005, those figures had fallen to 5.1 million (4.7% of the private sector
workforce) and 4.6 million, respectively. Foreign firms' R&D spending as a
share of total R&D spending in the U.S. has also slightly declined since
This trend reinforces the need for the United States to
renew its commitment to open investment, and to policies that make the U.S.
attractive for FDI.
Our National Security Review Process Has Not Restricted
the United States' Openness to Foreign Direct Investment
Since 1988, the interagency Committee on Foreign Investment in the United
States (CFIUS) has carefully reviewed the potential national security impact
of proposed foreign investments in the United States.
CFIUS's recently more public profile has created the misconception in some
quarters that the United States is becoming less open to foreign investment.
However, CFIUS is continuing its long history of fairly, efficiently, and
narrowly reviewing individual transactions for national security concerns
alone, without any protectionist influence on its decisions.
Less than 10% of foreign investments in U.S. companies
were reviewed by CFIUS in 2006, and the average since 2000 is about 5%. The
vast majority of foreign investment does not raise national security
implications – and is untouched by the CFIUS process.
Recent news - Invest
in America week
press release was issued by the US Department of Commerce.
Link to the original announcement
Release: May 5, 2008
Contact: Brittany Eck (202)
Department of Commerce Announces Inaugural “Invest
in America” Week
Commerce Officials to Highlight the Benefits Foreign Investment
Washington – Commerce Secretary Carlos M. Gutierrez today
announced the inaugural Invest in America Week, May 5-9, 2008, featuring
events spanning the United States. Invest in America Week will highlight the
importance of foreign direct investment (FDI) for U.S. jobs and economic
growth through a series of events in 18 states across the country.
More than five million Americans work in jobs created by
foreign direct investment, and FDI accounts for 10 percent of U.S. capital
investment, 15 percent of annual research and development expenditures, and
20 percent of U.S. exports. On average, U.S. subsidiaries of foreign firms
pay 25 percent higher wages than that of U.S. establishments, making these
jobs highly sought-after by U.S. workers.
“Invest in America Week highlights our commitment to open
investment policies that are key drivers of economic growth. Millions of
Americans are employed by foreign companies, with better than average wages.
We need to continue attracting investment that promotes economic growth and
produces jobs,” Gutierrez said.
Events will take place in Arizona, California,
Connecticut, Kansas, Kentucky, Maryland, Massachusetts, Nevada, New
Hampshire, New York, Pennsylvania, Rhode Island and Wisconsin.
The Department of Commerce created Invest in America in
2007 as the first federal-level U.S. investment promotion effort in a
generation. Invest in America provides support for state governments'
investment promotion efforts in all 50 states and is facilitating Invest in
America Week activities to showcase the benefits of foreign investment in
Historically, the United States is the world’s largest
recipient of FDI. Companies invest in the United States because, as the
largest economy in the world, it is one of the most important markets for
any global company. The United States is the most competitive and open
economy in the world, and America’s pool of skilled labor is one of the best
educated, most productive and innovative in the world. Foreign investors’
confidence in the U.S. economy has been and will continue to be critical to
American economic growth.
In recognition of the importance of FDI for U.S. jobs and
economic development, federal, state, and local officials across the country
will highlight the benefits foreign investment has brought to American
communities and families, as well as the broader benefits of encouraging an
open investment climate. For additional information, visit
left open for updates
Related Media Coverage
May 11. 2007 - Economy's 'Open' for Business
by David J. Lynch, St. Louis
"New rules for
(quoted from article about the new US "Open
"Traditionally, the U.S. government did little to solicit
foreign investment, instead banking on its inherent appeal as the world's
largest market. That approach worked when half the globe was economically
isolated because of communist rule in the Eastern Bloc and China or policy
choices in places such as India.
In a global economy, where capital can seek out opportunities worldwide, the
U.S. needs to be more aggressive. In March, the Commerce Department said it
would begin trying actively to attract more foreign investment through its
commercial attachés in U.S. embassies abroad and by working with state and
local economic development agencies here.
The Commerce Department initiative - dubbed Invest in America - comes as the
pool of foreign capital potentially at stake is set to grow. Asian central
banks that have been investing their enormous stockpiles of foreign exchange
in low-yielding government securities are creating investment funds that
will steer some of that cash into investments offering higher returns. Some
could wind up in equity investments."
Wall Street Journal, May 10, 2007 - White House
Makes Push to Draw Foreign Capital, by Deborah Solomon
The Hill, May 11, 2007 - Bush invites foreign
investment, vows balance with national security, by Ian Swanson
Forbes, March 15, 2007 -
The World's Buying America, by Brian Wingfield
Forbes, March 10, 2007 -
Yet Another Stupid Move by Congress, Notes On The News, by Paul
Maidmont - about the risks of protectionist moves by Congress in the wake of
the DP World (Dubai ports) deal
Forbes, March 8, 2007 -
Who Should Own America? by Matthew Swibel and Brian
Wingfield - about efforts in the House of Representatives to expand the role
of the CFIUS review process
Kiplinger Business Resource Center, April 16, 2007 - Foreign Firms
Welcome Again In the U.S., by Andrew C. Schneider
Fortune, March 5, 2007 - After Dubai Ports, U.S.
courts foreign investment, by Nina Easton
Financial Times, February 28, 2007 - Heavy-handed
www.ofii.org This association, the
Organization for International Investment, is a Washington DC based lobbying
group which represents the interests of more than 150 foreign-owned
companies in the USA.
Their website includes links
to PR and media coverage for this topic, and promotes the positive impact of
foreign investment into the USA..
NAM - www.nam.org
The National Association of Manufacturers focuses on representing the
interests of US manufacturers, including their interests in US trade
policies and the export promotion work of the US Commerce Department through
the ITA and FCS officers worldwide. They can therefore be expected to
provide a different point of view on the "open economies" policy and trying
to attract foreign investment to the USA.
US Chamber of Commerce -
international division of the US Chamber is tied to American Chambers of
Commerce Abroad (AmChams) as voluntary associations of American companies
and individuals doing business in a particular country, as well as firms and
individuals of that country who operate in the United States. The
Business Civic Leadership Center (BCLC) of the US Chamber supports business
involvement in America's communities through a variety of corporate
citizenship initiatives, including corporate philanthropy as well as other
community investment related to social issues in the places where they
choose to do business.
formerly known as the American Electronics Association, is a technology
industry lobbying group which publishes such things as their annual
BIO - www.bio.org
- the Biotechnology Industry Organization is an association of many
biotechnology and life sciences companies which regions around the world are
competing to attract. Many economic development organizations exhibit
at their annual convention as they compete for investment projects.
BIO has sponsored recent research such as a
Battelle study about regional industry clusters in this market.
fDi magazine (Financial Times group) hosted a May
8, 2007 event during BIO 2007 in Boston to present the latest consultant
global investment trends in the biotech and life sciences industry.
We also publish a directory which makes
it easier to research locations which are trying to compete for
investment in the biotech or life sciences sector in order to find the
latest information from their perspective.