News & Insights

Council Calls Bill Approved a Rational Approach to CFIUS Reforms

Washington DC – The National Foreign Trade Council (NFTC) today released a statement regarding the House Financial Services Committee’s favorable vote on the “National Security Foreign Investment Reform and Strengthened Transparency Act of 2006.” The legislation will help to reform the national security review process of foreign investment by the Committee on Foreign Investment in the United States (CFIUS).

“Taking a reasonable approach to reforms of the CFIUS process is vital to ensuring that we are able to maintain and enhance our national security, while encouraging foreign investment and expanding U.S. business opportunities into markets abroad,” said Bill Reinsch, president of the NFTC. “Today’s vote illustrates a commitment from the committee to make reasonable changes to CFIUS processes for vetting foreign investments.”

Direct foreign investment in the United States has been more than $530 billion over the past three years. In addition, these investment dollars are directly tied to more than five million American jobs.

“The NFTC is encouraged by the reform package approved today in committee and while concerned by a few of the particulars, we consider the action a step in the right direction towards full House consideration of CFIUS reforms,” said Reinsch. “Foreign investment helps fuel the growth of our economy and jobs, as well as business opportunity outside the U.S. Streamlining and amending the CFIUS review process will help to keep CFIUS focused on national security and making fact-based,  objective and timely decisions,” Reinsch concluded.

Advancing Global Commerce for Over 90 Years

The National Foreign Trade Council (www.nftc.org) is a leading business organization advocating an open, rules-based global trading system. Founded in 1914 by a broad-based group of American companies, the NFTC now serves hundreds of member companies through its offices in Washington and New York.