Two Newer Developments — Foreign Mergers and Satellite Export Controls — Contradiction Between Investment and Trade Policies?

Globe (Dec. 2012)
     Two pending developments are of great interest — relating to foreign corporate investments into the U.S. concerning critical technologies and pending changes in satellite export control rules. They show the growing contradiction within U.S. trade and investment policies. The new CFIUS Report indicates federal government hesitancy concerning foreign investment and the newer export rules show an aggressive change in such rules to promote exports. The Obama administration needs to continue its focus on promoting both export trade and direct investment into the U.S. The hesitancy over foreign investment into the U.S. needs to be overcome. This is essential for economic development and job creation in this globalized world.
 ….The new annual report by CFIUS for 2011 (release December 2012) continues to be critical of alleged actions of foreign governments directing their firms to acquire critical American technologies via takeovers and mergers. Various deals are still pending especially those from China.
 …. Satellite-export rules are about to be eased upon passage of the pending Defense Authorization Bill for fiscal year 2013. Aerospace companies have been pushing this in order to expand their civilian space business abroad, especially in light of the pending defense cuts in the Unite  States. This is particularly useful and should be expanded for other products.

About Stuart Malawer

Distinguished Service Professor of Law & International Trade at George Mason University (Schar School of Public Policy).
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