Lobby “Loophole” Bill
Senators Charles Schumer (D-NY), Claire McCaskill (D-MO) and Barrack Obama (D-IL) have introduced legislation that includes a provision requiring individuals who lobby for foreign companies – including U.S. subsidiaries of foreign firms - to register under the Foreign Agents Registration Act (FARA).  This new proposal discriminatorily labels American citizens working for these companies.

Current law provides an exemption from FARA registration for individuals representing commercial interests who register under the Lobbying Disclosure Act (LDA).  Removing this exemption does not close a loophole – it changes the law.  

The purpose of the FARA exemption was to properly differentiate between private and government entities.  A 1998 Senate Governmental Affairs Committee report makes this clear by stating,” The Committee’s intention is to reaffirm the bright line distinction between governmental and non-governmental representations.  Agents of private commercial foreign principals will be exempt from FARA requirements so long as they register under the LDA.”

A recent opinion piece in The Hill, “When a loophole doesn’t need to be closed,” by Thomas Spulak spells the issue out clearly. 

fffOFII's Annual Dinnerf

OFII's 14th Annual Dinner, featuring Saturday Night Live's Darrell Hammond will be on Wednesday October 29th in Washington, DC. This is an invitation only event. For more information, contact OFII.

New Study Shows U.S. Benefits When Foreign Companies Acquire U.S. Businesses
OFII released a new study, “Insourcing Mergers & Acquisitions,” which details the many ways U.S. companies, workers and the overall economy benefit when foreign companies acquire U.S. businesses. 

According to the report, authored by Professor Matthew Slaughter, mergers and acquisitions are the main way in which foreign companies start and expand their U.S. operations and are essential for the country to benefit from insourcing.

From 1987-2006, the U.S. received $2 trillion in new foreign direct investment - of which insourcing M&A accounted for 88.8 percent, with greenfield activity (i.e., when a firm builds a new facility) making up the remainder.

According to the report, acquired U.S. companies often gain access to more capital, greater productivity and efficiencies, and global reach. Specifically, foreign acquisitions can foster growth of key activities like employment, wages, and investment.

In addition, foreign acquisitions of U.S. companies play an important role in financing the U.S. current account deficit.

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New Foreign Investment Report: Greenfield Projects 2007
OFII has updated its foreign investment Greenfield report, detailing businesses created in the United States by foreign companies in 2007.  In June, OFII released, “The Impact on the U.S. Economy of Greenfield Project by U.S. Subsidiaries of Foreign Companies,” which looks at the economic impact of such investment in terms of jobs generated and capital expenditures. 

According to the report, foreign companies announced or opened nearly 760 Greenfield investments and expansions in 2007. These new businesses are expected to support close to an additional 52,000 American jobs, amounting to more than $35.5 billion in capital investments.

Indiana ranked the highest in terms of jobs created by foreign investment Greenfield projects, generating over 4,500 jobs in the state, with a total of 33 new projects.  Georgia ranked a close second, adding 4,400 jobs, while nine other states gained more than 2,000 jobs each through Greenfield investments.

Russian-based MMK’s new cold-rolled steel mill in Portsmouth, Ohio, created the most jobs in any single project, adding 2,039 to the payroll in the state

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