He’s always looking out for the working man:
U.S. Sen. Sherrod Brown (D., Ohio) said Monday that he is co-sponsoring bipartisan legislation that would give the Commerce Department the ability to review foreign purchases of — or investment in — U.S. industries to determine if they are in the best economic interest of American workers.
The United States Foreign Investment Review Act would set up a swift and efficient process to review foreign investment in U.S. industry and give the commerce secretary the ability to approve, prohibit, or modify any deals.
It would apply to deals that result in foreign control of any U.S. entity worth more than $1 billion or any transaction by a foreign state-owned enterprise that would result in control of a U.S. entity worth more than $50 million. And Congress would have the right to request an additional review.
Sen. Chuck Grassley (R., Iowa) is a co-sponsor of the bill. There is no complementary bill yet in the House of Representatives.
“We sometimes see foreign investment in the U.S. that raises concerns,” said Mr. Brown, who announced the legislation during a news conference at United Auto Workers Local 12 hall on Ashland Avenue.
The senator said there are growing examples of foreign investment in U.S. firms squarely aimed at giving those newly acquired entities an “unfair advantage” against their U.S.-owned competitors. On some occasions there have been billion-dollar investments or acquisitions that took place “and we didn’t even know it was happening,” Mr. Brown said.
Laws exist to prevent foreign powers or foreign companies from purchasing assets or businesses vital to the U.S. defense industry. “But there’s nothing to protect our domestic industries,” the senator said.
Here are some more specifics:
The United States Foreign Investment Review Act would:
- Require review of certain proposed foreign investments for their impact on the U.S. economy and jobs. The bill would require a review of any foreign investment that results in foreign control of any U.S. entity worth more than $1 billion, and a review of any transaction by a state-owned enterprise that would result in control of a U.S. entity worth more than $50 million.
- Create a process to efficiently review investments. Within 15 days, the Secretary of Commerce must approve or prohibit the transaction or inform the parties to the transaction that additional time is needed to complete the review. If the Secretary requires an extended review of the investment, a decision to approve, prohibit, or require modification of the transaction is due within 45 days of receiving written notification. The Secretary has the option to request 15 additional days for the extended review, but all transactions are reviewed and acted on within 60 days of receiving written notification.
- Give Congress the ability to request additional reviews. The bill also gives the Chair and Ranking Member of the Senate Finance Committee or House Ways and Means Committee the opportunity to request that the Secretary of Commerce review investments of any value.
- Ensure a transparent review. Under the legislation, the Secretary of Commerce must make all decisions public and submit an annual report to Congress on results of transactions reviewed. It also calls for a 10-day public comment period for each investment subject to an extended review.
For more information, click here to contact Brown’s office.
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