Investment AffairsThe Office of Investment Affairs (IFD/OIA) develops and carries out U.S. policy on international investment matters, in cooperation with other agencies. Strategic goals are to:
The Office pursues these goals by:
Foreign investment is vital to economic growth around the globe. Investment creates good jobs, increases productivity, and raises living standards in the United States and in other countries. We encourage nondiscriminatory, open, and market-oriented environments for U.S. investment overseas though the negotiation of Bilateral Investment Treaties (BITs) and investment chapters in Free Trade Agreements (FTAs). BITs and FTA investment chapters protect U.S. investors and investments abroad and gain greater access for U.S. investors in foreign markets. The Department of State co-chairs the negotiation of U.S. BITs with the Office of the U.S. Trade Representative (USTR), and serves on USTR-led delegations in the negotiation of FTA investment chapters. We monitor investment elements of the North American Free Trade Agreement (NAFTA). The Office of Investment Affairs also coordinates preparation by U.S. embassies abroad of annual Investment Climate Statements. We are actively involved in investment capacity building and promote dialogue with countries seeking to improve the legal and regulatory frameworks underlying their investment climates. The leaders of the Group of Eight (G-8) major industrial democracies announced an action plan entitled " Applying the Power of Entrepreneurship to the Eradication of Poverty " at their June 8-10, 2004 summit in Sea Island, Georgia. One important element of the action plan is to work with developing countries to develop pilot projects to improve their investment climates. A pilot with Indonesia was launched on June 25, 2004. G-8 leaders also announced a " Partnership for Progress and a Common Future with the Region of the Broader Middle East and North Africa ", including work to promote entrepreneurship, expand investment, and increase access to capital. We also participate actively in the OECD's Middle East and North Africa (MENA) Investment initiative. We work closely with the Overseas Private Investment Corporation (OPIC), a U.S. Government agency that supports U.S. investors overseas with specialized insurance and finance programs. We coordinate with other State Department bureaus to ensure OPIC's activities are consistent with our overall foreign policy aims. Business groups, labor unions and non-governmental organizations are focusing public attention on globalization and international organizations where trade and investment policy is negotiated or coordinated. The Office of Investment Affairs helps lead international work to develop and strengthen investment policy by engaging actively at multilateral organizations, including:
Multilateral cooperation encourages transparency and investment liberalization to facilitate increased investment flows. The Office of Investment Affairs develops strategies to fight transnational bribery and enhance transparency, working in cooperation with other State Department bureaus and U.S. agencies. The U.S. launched a new action plan to combat corruption and promote transparency, which was adopted by the Group of Eight (G-8) major industrial democracies at its 2003 Evian Summit, building on President Bush's commitments from the March 2002 Financing for Development Conference in Monterrey, Mexico and the Millennium Challenge Account. OIA coordinates the interagency effort at the OECD to combat transnational bribery of foreign public officials, and monitors enforcement of the OECD Convention on Combating Bribery of Foreign Public Officials in International Business Transactions through rigorous peer review. We work to encourage other countries to investigate illicit payments paid to the former Saddam Hussein regime in Iraq under the UN's Oil-for-Food program and uncovered by the special Independent Inquiry Committee. The Office also serves as the U.S. National Contact Point (NCP) for the OECD Guidelines for Multinational Enterprises. The OECD Guidelines are non-binding recommendations on responsible corporate behavior from governments to their multinational corporations, covering topics like labor relations, environmental policy, corporate disclosure and combating bribery. Along with the Commercial and Business Affairs Office (CBA) and the Office of International Claims and Investment Disputes (L/CID), the Office of Investment Affairs is a point of contact within the State Department for assistance to U.S. companies involved in investment disputes, expropriation cases, or other claims against foreign governments. We also work with the Department of Commerce to collate investment climate information for prospective overseas investors. OIA coordinates with the Departments of Commerce and Justice to address alleged incidents of bribery of foreign public officials (by foreign-based corporations) that adversely affect the opportunity for U.S. companies to compete on a transparent and level playing field for international tenders and contracts. |