DeLauro Introduces Foreign Investment and Economic Security Act of 2014

WASHINGTON, DC—Congresswoman Rosa DeLauro (D-CT) today introduced the Foreign Investment and Economic Security Act of 2014 (FIESA), which would require the Committee on Foreign Investment in the United States (CFIUS) to consider the net benefit of any transaction between a foreign and American company. CFIUS is authorized to review proposed deals that could result in an American business being controlled by a foreign one.

Currently CFIUS only has to consider the impact on national security. FIESA would require:
• A net benefit review by the Departments of Commerce, Justice, Labor and Treasury, and the U.S. Trade Representative
• The Department of Agriculture would be required to participate in the review when the transaction may impact the agriculture sector
• The Department of Health and Human Services would be required to participate in the review when the transaction may impact the public health
• CFIUS to consider the transaction’s impact on economic activity, employment, technology, productivity, public health and safety. Special scrutiny would be given to transactions involving State-Owned Enterprises

“Foreign investment in the United States is critical to creating jobs, bolstering innovation and enhancing America’s global competitiveness,” DeLauro said. “But we need to ensure that foreign transactions provide a net benefit to America. That is not the case, as we saw with last year’s purchase of Smithfield Foods by Shuanghui. The Foreign Investment and Economic Security Act is necessary to ensuring American workers are not sacrificed for foreign profits.”

DeLauro raised concerns about the Smithfield-Shuanghui deal from the moment it was announced. She wrote to four top members of the Obama Administration, to ensure greater transparency of the proposed deal. She also ensured the Financial Services Appropriations bill approved by the House of Representatives Appropriations Committee required CFIUS to consider food safety, food security and intellectual property concerns in its review.


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