US ponders complement to Cfius regime

Author: IFLR Correspondent | Published: 29 Nov 2017

On October 18 2017, senators Sherrod Brown (D-OH) and Chuck Grassley (R-IA) introduced the United States Foreign Investment Review Act of 2017 (Fira). If enacted, Fira would reflect the most significant thematic expansion of the US government's foreign investment clearance regime since the passage of the Foreign Investment and National Security Act of 2007 (Finsa), which codified the legal authority and current review process for the Committee on Foreign Investment in the United States (Cfius).

Fira would amend the Trade Act of 1974 to require the Secretary of the Department of Commerce to review certain foreign acquisitions of US businesses to determine the economic effects of such acquisitions on the US. Explicitly targeted at mitigating the perceived adverse economic impacts of foreign government-sponsored investments, Fira would require mandatory review of deals above certain dollar thresholds, and empower the Department of Commerce and the United States Trade Representative, each of which...