Pryce: CFIUS Reform Protects America’s Security and Economy

July 11, 2007

Pryce: CFIUS Reform Protects America’s Security and Economy
Pryce Was an Original Sponsor and Financial Services Leader on Approved Bill

Washington, DC – Today, Congresswoman Deborah Pryce (R-Columbus) heralded House passage of H.R. 556, legislation to reform the Committee on Foreign Investment in the United States (CFIUS), citing the bill as an appropriate balance between ensuring our nation’s security and encouraging investment and job growth.

Upon passage of H.R. 556, Pryce issued the following statement:

“This bipartisan, carefully crafted effort enhances American security, restores public confidence in the process by which foreign investment in the U.S. is analyzed and approved, and ensures certainty and predictability for investors wishing to do business in the United States.

“Most importantly, this measure strengthens our nation’s security. For the public to have faith in a CFIUS-reviewed transaction, it must be confident that the intelligence community has thoroughly reviewed it, and that the Committee has been given sufficient time to critically analyze its implications. This bill fully provides these assurances.

“The bill also safeguards the job creation and economic growth America derives from foreign investment in our country. The United States remains the world's largest recipient of foreign direct investment, which injected more than $184 billion in U.S. businesses in 2006 alone, and employs more than 5.5 million U.S. workers. If the United States is to continue to attract the ideas, people, capital and companies necessary to compete globally in the 21 st century, we need a CFIUS process that ensures that America remains an attractive and accessible place to do business and invest.”

Pryce is Ranking Member of the Subcommittee on Capital Markets, Insurance, and Government Sponsored Enterprises of the House Financial Services Committee. During the 109 th Congress, Pryce Chaired the Domestic and International Finance Subcommittee (DIMP) which had oversight of CFIUS and held the first Congressional hearings into the controversial CFIUS-approved Dubai Ports transaction. She is an original sponsor of H.R. 556, as well as similar legislation introduced last Congress.

While CFIUS has been in quiet existence for more than fifty years, it became the subject of much controversy last year when it approved Dubai Ports World (DPW) of the United Arab Emirates to manage six U.S. ports. After several Congressional hearings into the matter, DPW withdrew its proposal.

H.R. 556, the Foreign Investment and National Security Act of 2007, passed the Senate in late June, and will now head to the President’s desk for signature.

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