Earlier this week, the House of Representatives passed the Global Investment in American Jobs Act (H.R. 2052) by a vote of 379-32. Introduced by House Commerce, Manufacturing and Trade Subcommittee Chairman Lee Terry (R-NE), the bill directs the Commerce Department to come up with a plan to promote greater foreign investment in the United States.
Earlier in the year, NAM Vice President for International Economic Affairs Linda Dempsey testified in support of the legislation’s objectives at a House Commerce, Manufacturing, and Trade Subcommittee hearing. Manufacturers that are subsidiaries of foreign-headquartered companies create jobs, invest in R&D and make substantial capital expenditures in the United States. The most recent data from 2012 show that FDI in manufacturing accounts for nearly 50 percent of total FDI last year, and FDI in manufacturing is showing a rebound from the weakness in 2008 and 2009.
The longstanding “open investment policy” that successive administrations, both Republican and Democratic, have reaffirmed is supported through various aspects of U.S. law, regulation and policy – including the bilateral investment treaty (BIT) program. An interagency review of investment policies, as called for in the bill, would help foster a greater understanding of the U.S. investment environment and how it can be improved.