BILL EXPANDS REVIEW PROCESS ON FOREIGN INVESTMENTS AND ACQUISITIONS OF AMERICAN COMPANIES

Washington, Feb 28, 2007 - "Investments from overseas supports 5.1 million American jobs, account for 19 percent of our exports, and contribute $59 billion in re-investments to our economy," said Rep. Cliff Stearns (R-Ocala). "However, we must ensure that foreign investments and acquisitions of American companies pose no threat to our security. This legislation formalizes and expands the review and investigation process on these investments."

The House today approved H.R. 556, the National Security Foreign Investment Reform and Strengthened Transparency Act of 2007. In 1975, the Committee on Foreign Investment in the United States (CFIUS) was created to review and monitor the impact of foreign investments in the United States. H.R. 556 makes certain that the CFIUS process for vetting proposed foreign investments in the U.S. meets national security objectives, while preserving an open, fair and non-discriminatory investment environment.

In 2006, Dubai Ports World, owned by the government of Dubai, sought the acquisition of commercial operations, including security, at six American ports. Although Dubai Ports withdrew from the acquisition, the case increased interest in the CFIUS review process. Added Stearns, "Preserving a balanced and transparent CFIUS process is vital to enjoying the open cooperation from companies wishing to invest in the U.S. economy and to safeguarding our security." Stearns chaired a hearing last year on CFIUS reform in the Commerce, Trade & Consumer Protection Subcommittee.