WASHINGTON (June 20, 2011) – The White House News Service announced Monday that the President’s Council of Economic Advisers released a report on the positive impact and significant potential of U.S. Inbound Foreign Direct Investment, highlighting the Administration’s open investment policy that allows foreign-based companies to grow and expand their businesses across the United States.
The report also outlines how foreign-based companies that invest directly in the US economy create high-quality, well-paid jobs for American workers – by building new facilities, investing in research and development and growing warehouses, sales offices and service centers.
“The United States is an attractive location for foreign companies to invest due to our strong and open economy, our productive workforce, a unique culture of innovation and entrepreneurship, remarkable colleges and universities, and a business environment underpinned by transparency, protection of intellectual property, and the rule of law,” said President Obama. “At a time where we need to use every tool in our toolbox to continue to put Americans back to work and grow the economy here at home, promoting foreign direct investment is an important opportunity to accelerate our economic recovery.”
The U.S. continues to receive the most foreign direct investment of any country in the world. In fact, the CEA reports that in 2010, the U.S. inbound foreign direct investment rebounded sharply and increased by 49 percent from the economic crisis level it reached in 2009. This investment is particularly important to the U.S. manufacturing sector. In 2008, the U.S. affiliates of foreign multinational corporations employed 13 percent of the entire manufacturing workforce in the United States. And over 42 percent of the US affiliates’ total value-added production in 2008 was concentrated in the U.S. manufacturing sector.
Last week, the President’s Council on Jobs and Competitiveness put forward a set of ideas for accelerating private sector job growth. Promoting foreign direct investment was one of the recommendations put forward by the group of private sector leaders because of the great potential for the American economy. Additionally, the Administration launched the SelectUSA Initiative to facilitate additional investment, reconfirming the federal government’s ongoing and unwavering commitment to an open investment climate.
As the CEA report notes, thousands of companies around the world choose to invest and utilize the ingenuity and entrepreneurship of the American workforce, investing billions of dollars, supporting millions of jobs that offer higher than average levels of compensation, ultimately strengthening the U.S. economy. To compete for the best jobs and develop the industries of the future, the U.S. will continue to pursue an open investment climate to attract businesses to build, develop and expand their companies across the nation.
The White House statement from President Barack Obama was that the United States reaffirms our open investment policy, a commitment to treat all investors in a fair and equitable manner under the law, and I encourage all countries to pursue such a policy.
“My Administration is committed to ensuring that the United States continues to be the most attractive place for businesses to locate, invest, grow, and create jobs,” Obama said. “We encourage and support business investment from sources both at home and abroad.
“Investments by foreign-domiciled companies and investors create well-paid jobs, contribute to economic growth, boost productivity, and support American communities. The United States consistently receives more foreign direct investment than any other country in the world. By voting with their balance sheets, businesses from abroad have clearly stated that the United States is one of the best places in the world to invest. This is because we have a strong and open economy, the world’s most productive workforce, a unique culture of innovation and entrepreneurship, remarkable colleges and universities, and a business environment marked by transparency, protection of intellectual property, and the rule of law.
“Inbound investment has long been an important component of our overall economy. Today, United States subsidiaries of foreign-domiciled companies employ more than 5 million Americans and provide above-average compensation. These companies invest in innovation here in the United States, spending over $40 billion each year on research and development. And in many cases the goods and services produced here are sold around the world, contributing to the National Export Initiative goal of doubling exports.
“In a global economy, the United States faces increasing competition for the jobs and industries of the future. Taking steps to ensure that we remain the destination of choice for investors around the world will help us win that competition and bring prosperity to our people. Consistent with our national security and while ensuring a level playing field for American investors, we will do just that.”
Read the entire report online at www.whitehouse.gov/sites/default/files/microsites/cea_fdi_report.pdf.