SelectUSA Investment Summit
Invest in America is an initiative of the U.S. Department of Commerce's International Trade Administration to promote foreign direct investment to the United States, the only such U.S. effort at the federal level.
On March 7, 2007, U.S. Commerce Under Secretary for International Trade Franklin Lavin announced the creation of this new U.S. Government initiative, housed in the International Trade Administration, which promotes the United States as a destination for inward direct investment, also known as foreign direct investment. This initiative is the primary U.S. Government mechanism to attract foreign investment and work to create a more attractive climate for foreign investment.
This initiative supports President Bush’s recent statement on open economies that reaffirms the commitment by the United States to promote open investment policies. Through Invest in America, the Department of Commerce promotes the U.S. economy as the best place in the world to do business.
In introducing the initiative, Under Secretary Lavin said, "The United States welcomes foreign investment and the jobs and prosperity it creates here. We are seeing increasing global competition for investment flows and we need to make sure that international investors understand the unique advantages of the United States, including the best workforce in the world."
Activities
The Department of Commerce’s global network will provide the platform to educate international investors on the advantages that come with investing in the United States.
The initiative is focused on outreach to the international investment community; coordination with state governments engaged in foreign investment promotion; and work as ombudsman in the Washington, DC policy community to address business climate concerns.
The Invest in America Initiative complements the work of state governments. The one activity the initiative will not undertake is to steer prospective investors toward or away any particular location in the United States. That part of the investment decision must continue to be led by the states, and the U.S. Federal Government will remain strictly neutral in any competition among sites within the U.S. The initiative will promote the U.S. in general as a site for investment.
Aaron Brickman is director of the Invest in America initiative.
Benefits of foreign direct investment
- Investment from foreign subsidiaries employs more than 5 million American workers, providing 4.5% of all private-sector employment.
- U.S. subsidiaries of foreign firms spent $29.9 billion on research and development activities in the United States in 2005.
- In 2006, U.S. subsidiaries of foreign firms reinvested $80.3 billion of their profits back into the U.S. economy.
- U.S. subsidiaries of foreign firms accounted for 19% of total U.S. exports of goods ($153.9 billion in 2004).
- The total stock of FDI in the United States in 2005 was almost $1.9 trillion, or the equivalent to 15% of U.S. GDP.