WASHINGTON – There have been multiple news reports that the Committee on Foreign Investment in the United States (CFIUS) is poised to recommend President Biden block the proposed acquisition of U.S. Steel by Nippon Steel. Concerned about the role that politics is playing in the cross-border investment review process, a coalition of associations representing numerous industries sent a letter to Treasury Secretary Yellen, chairperson of CFIUS, today to warn of the troubling precedent for future reviews that this action could set.
“Unfortunately, there have been persistent attempts recently to politicize the committee’s work from across the political spectrum, allowing politics to undermine the clear and narrow statutory mandate of national security,” the coalition wrote. “We fear this political pressure may be unduly influencing the outcome of the CFIUS review. Indeed, America’s investment climate will be severely tarnished if such political interference prevails.”
The coalition continued, “CFIUS should never become a tool for political posturing and should not morph into industrial policy masquerading as national security.”
“…we would note that a critical factor for why the United States is able to attract such a high level of investment from international companies is our country’s commitment to the rule of law and the predictability and stability of our regulatory framework,” the coalition concluded. “We urge you to maintain this standard and ensure political interference does not diminish America’s investment climate.”
Joining the Global Business Alliance (GBA) in sending this letter are the U.S Chamber of Commerce, National Foreign Trade Council (NFTC), Autos Drive America, Alliance for Automotive Innovation, United States Council for International Business (USCIB), and Keidanren (Japan Business Federation).
Read the full letter.