WASHINGTON, June 7, 2012 /PRNewswire-USNewswire/ -- Today Senate and House leaders of both parties introduced legislation highlighting the national importance of increasing Foreign Direct Investment (FDI) in the United States. The "Global Investment in American Jobs Act" aims to reclaim America's competitive edge in attracting inbound investment and reverse the significant decline in U.S. share of global FDI over the past decade.
Senators Kerry (D-MA) and Corker (R-TN) sponsor the Senate legislation and Representatives Dold (R-IL-10), Roskam (R-IL-06), Peters (D-MI-09) and Barrow (D-GA-12) lead the House bill. The bill directs the Secretary of Commerce to lead the first-ever interagency effort to assess U.S. policy on inbound investment, assess the barriers to FDI and recommend ways to make America more attractive to global companies. It also outlines the importance of inward FDI to the U.S. economy and represents an important step in elevating awareness of its role in our competitiveness as a nation.
"We commend the bill sponsors for their efforts to improve U.S. competitiveness and our ability to create American jobs through global investment," said Nancy L. McLernon, President & CEO of the Organization for International Investment (OFII). "This bold recognition of the benefits of global investment comes at a critical time for our nation's economy. Tackling the barriers to FDI is needed to improve America's competitiveness and increase the U.S. share of inbound investment." OFII supports the legislation as it sends a powerful message to the international business community: the U.S. supports inbound investment and is taking action to improve its competitiveness.
The benefits of FDI to the U.S. economy are significant. Last month OFII released the first-of-its-kind report on the positive, cascading impact of foreign investment in the United States. "Chain Reaction, Global Investment Works for America" documents the tremendous value of FDI in America:
- JOBS: 5% of private sector employment - 5.3 million direct jobs
- MANUFACTURING: 17% of manufacturing jobs - approximately 2 million
- EXPORTS: 21% of all U.S. exports - $219.7 billion
- R&D: 14% of U.S. research and development activities - $43.4 billion annually
- REINVESTMENT: U.S. subsidiaries of foreign companies reinvest an annual $93.7 billion in their U.S. operations
- SUPPLY CHAIN IMPACT: U.S. subsidiaries of foreign companies buy more than $1.8 trillion in goods and services from local suppliers and small businesses.
- TAXES: 17% of U.S. corporate income tax payments.
The Organization for International Investment (OFII) is the leading U.S. business group promoting inbound investment in the U.S. and policies that support Foreign Direct Investment. It represents U.S. subsidiaries of foreign companies. For additional information, see OFII's web site at www.ofii.org.
SOURCE Organization for International Investment