Outstanding practices and operations are important parts of what makes the U.S. the best place to manufacture in the world. Smithfield Foods represents those first class standards and has long been a bright spot in food manufacturing.
Foreign direct investment (FDI) is another aspect of making the U.S. the world’s foremost manufacturing location – and it is critical to supporting our economy and economic growth. FDI is responsible for job creation, exports and over $40 billion in research and development every year.
Over the years, support for FDI has been bipartisan– receiving support from the likes of President Reagan and President Obama. Thirty years ago, President Reagan stated:
“A world with strong foreign investment flows is the opposite of a zero-sum game. We believe there are only winners, no losers, and all participants gain from it.”
President Obama deserves credit for supporting an open environment for FDI – one that will help with our economic recovery – and reinforcing the message that investment is an important driver of our economy.
“My Administration is committed to ensuring that the United States continues to be the most attractive place for businesses to locate, invest, grow and create jobs. We encourage and support business investment from sources both at home and abroad.”
As such, the proposed purchase of Smithfield Foods by the Shuanghui International Holdings is one in a long and important line of private sector led foreign investments into the United States. It is a commercially focused investment and one could provide important benefits for greater U.S. access to markets overseas.
The NAM strongly supports the United States’ continued embrace of the “open investment policy” and looks forward to the new growth and economic opportunities, including those provided by this proposed transaction and other such market-driven private sector investments from abroad.
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