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America Welcomes the World’s Business

November 12, 2019

By Secretary of Commerce Wilbur Ross

America is where the world does business. It is not difficult to see why: companies expanding here will find a culture of innovation, dedication to hard work, and a high quality of life. From its inception. it has been the job of SelectUSA to encourage companies to benefit from these unmatched and unparalleled advantages the U.S. has to offer.

More formally put, the mission of SelectUSA is to facilitate job-creating business investment into the United States and raise awareness of the critical role that economic development plays in the U.S. economy. One of the primary avenues where this mission is accomplished is through the annual SelectUSA Investment Summit.

Today, I am pleased to announce that registration is open for the 2020 SelectUSA Investment Summit — where companies looking to invest in the United States can learn the skills and make the connections to fuel their business’ growth in America. In 2020, the Investment Summit will take place June 1-3, at the Washington Hilton, in Washington, D.C.

Year after year, the Investment Summit buzzes with energy, creating an environment of entrepreneurship, excitement, and potential. Thousands of people from all over the world come here to gain insight into the business environment, learn of industry trends, and bring business deals to fruition. International delegates connect with economic development organizations (EDOs), all of whom can showcase the unique resources of their states and towns, while service providers exhibit the variety of assistance they can offer to expanding companies.

SWR Ivanka Barbara Humpton -SUSA 2019 registration 1101219

The 2019 SelectUSA Investment Summit welcomed more than 3,100 attendees, including global business leaders, U.S. economic development professionals, and leaders from the top of the U.S. government. Pictured here are Commerce Secretary Wilbur Ross, Advisor to the President Ivanka Trump, and Siemens USA CEO Barbara Humpton.

Additionally, our Academy sessions demystify the process of investing in the United States. Topics range from understanding how to finance a startup company to navigating the U.S. visa process. These sessions are planned with our attendees’ interests in mind, as we accept proposals for topics and speakers to include on the agenda.

The 2019 Investment Summit was the most successful to date, where more than 1,200 international delegates connected with nearly 800 EDO representatives and 300 service providers from nearly every state and territory in the U.S. The Investment Summit has directly impacted more than $32.5 billion in U.S. investment projects supporting more than 38,400 U.S. jobs. At the recent 2019 Investment Summit, four investment announcements were made with a value of nearly $100 million, which will in turn create new jobs for American workers. We hope to build upon these successes.

In 2020, we are excited to help you and your company reach its full potential in the United States at the SelectUSA Investment Summit.

I hope to see you there.

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The International Trade Administration’s Advisory Committee Gets Firsthand Look at Supply Chain Competitiveness in Laredo, Texas

November 7, 2019

By Rachel Minogue, International Trade Specialist in the Office of Supply Chain, Professional and Business Services

Last month, members of the International Trade Administration’s (ITA) Advisory Committee on Supply Chain Competitiveness (ACSCC) embarked on a tour of the commercial activities at the U.S.-Mexico border in Laredo, Texas on October 16-17.

In March of this year, Laredo rose to become the largest port, or commercial hub, in the United States. Laredo is setting impressive records in recent years with over $100 billion in U.S. exports processed in 2018, a first for any U.S. port. As leading professional and academic experts in value chains, ACSCC members were eager to witness the impressive supply chain efficiencies at work in Laredo’s customs district, which handles over one-third of all U.S. trade with Mexico.

ACSCC train shot Laredo blog 110719

ACSCC members outside Kansas City Southern’s historic Southern Belle passenger train

During the Laredo visit, Committee Members participated in a three-hour rail trip on a
Kansas City Southern (KCS) train, showcasing the role of transportation in the supply chain and its importance to bilateral trade.

Kansas City Southern President and CEO Patrick Ottensmeyer stressed the importance of U.S.-Mexico commercial ties for the rail industry, stating that “Kansas City Southern sees significant new opportunities for growth in trade between the United States and Mexico, including increased exports from the United States of commodities that are much needed and desired in Mexico.”

In addition, the group toured Werner Enterprises, the largest cross-border transportation provider to and from Mexico, and the federal inspection stations for U.S. Customs and Border Patrol at both the World Trade Bridge and the Laredo International Airport.

The structures in place for processing and innovating U.S. and Mexican customs procedures at the border impressed many members of the ACSCC. This includes Elizabeth Merritt, Managing Director of Cargo Services at Airlines for America, who added, “we strongly support the cargo pre-clearance initiative at the Laredo Airport, which leverages the bilateral customs partnership between the U.S. and Mexico, streamlines the movement of American exports, and boosts the competitiveness of the North American supply chain while maximizing resources to ensure trade compliance. As a large amount of air freight also begins or ends with a road transport segment, we also support the truck pre-clearance work being done at the World Trade Bridge.”

Patric at ACSCC 101619

Commerce’s Patrick Wilson  (left) and KCS’ Brian Hancock at IBC Headquarters.

While in Laredo, the ACSCC also held its quarterly meeting, which included discussions on the benefits of the United States-Mexico-Canada Agreement (USMCA). The meetings were hosted by the International Bank of Commerce (IBC), headquartered in Laredo. The Department of Commerce’s Office of Business Liaison Director Patrick Wilson, led ITA’s delegation to Laredo and highlighted the prospective importance of USMCA to the ACSCC members, emphasizing, “once approved by Congress, the USMCA will rebalance trade on our continent to once again benefit American producers by eliminating red tape at the border that often hinders small- and medium-sized businesses.”

Mr. Ottensmeyer seconded the need for congressional passage of USMCA, as he stated that “approval of USMCA is essential to provide clarity and structure to support investment and growth in commodities throughout the United States. This investment and growth will benefit both countries, creating jobs and economic growth on both sides of the border.”

The ACSCC is tasked with providing detailed advice to Commerce Secretary Wilbur Ross on national freight infrastructure policy to support U.S. supply chain and export competitiveness.  As part of their mission, the ACSCC visits areas of supply chain importance to better understand their activities across the United States. Previous visits include the Port of Los Angeles, in California; the UPS headquarters in Louisville, Kentucky; the Boeing manufacturing plant in Seattle, Washington; and the Port of Houston, in Texas.

For more information on the International Trade Administration’s Advisory Committee on Supply Chain Competitiveness, please visit our website.

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Richmond, Virginia: Providing a Soft Landing Since 1607

October 29, 2019

This post contains external links. Please review our external linking policy.

The Greater Richmond Partnership, Inc. (GRP) is the lead regional economic development organization for the City of Richmond and the counties of Chesterfield, Hanover and Henrico in Virginia.

This post is part of SelectUSA’s EDO Spotlight series, highlighting the work of EDOs around the country recruiting foreign direct investment, how that work supports jobs and economic growth across the United States, and how SelectUSA partners with EDOs to support economic development.

You could say that the first foreign direct investment occurred in 1607 when English settlers founded the Richmond Region in Virginia. Soon thereafter the nation’s first hospital was built, the first university was chartered, and the first ironworks were established.

Richmond VA guest blog 102919

Photo via Creative Dog Media

Today, the Richmond Region is home to more than 220 international firms from 26 countries employing 24,600 residents. From advanced manufacturing to supply chain and finance to technology, international firms love the region’s quality of life and affordable business costs.

The biggest challenge for international companies is finding the right location and much like explorers John Smith and Christopher Newport, businesses are still finding their way to the Greater Richmond Region:

  • Sabra Dipping Company operates the world’s largest hummus factory in the region.
  • A locally-based Rolls-Royce manufacturing facility anchored two suppliers, Erodex and Pryor Technology. The two UK-headquartered companies were seeking to improve existing customer relations while expanding its offerings.
  • German company iMPREG Group expanded its operations with a North American headquarters.
  • Polykon Manufacturing, a joint venture between two Air Liquide entities (France), is completing its $60 million facility to produce consumer cosmetics.
  • ERNI Electronics, Inc., a Swiss-based manufacturer of electrical connectors for the automotive, medical, and communications fields, is investing $25 million to establish a new 80,000-square-foot facility.

The United States is the largest economy in the world, so opportunities abound for new businesses. However, most of our clients are adapting from their home market with different business cultures, systems and regulations. GRP encourages international firms to maximize their efforts and resources by taking advantage of expert advice and doing things right the first time. When a company visits the Richmond Region, GRP schedules an itinerary loaded with meetings with industry leaders, local partners and service providers.

GRP’s Global Assistance Program is a one-stop shop designed to provide these essential connections for firms exploring opportunities in the U.S. market. Our roster of referral partners and experienced professionals have a proven track record with international businesses. Company information is always kept confidential and the first meeting with any of our partners is complimentary and without obligation. Available services, include legal advice, , financing, development and real estate, insurance, and marketing.

But don’t take our word for it. In fact, many of GRP’s former clients have served as the best salespeople for the Richmond Region. Several firms even serve on GRP’s International Advisory Committee, which provides valuable expertise and insight for companies considering the U.S. market.

It’s a lot easier following an expert’s map than stumbling through unchartered territory.

For more information on GRP, please visit the organization’s website at grpva.com.

About SelectUSA

Housed within the U.S. Department of Commerce’s International Trade Administration, SelectUSA promotes and facilitates business investment in the United States.

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Key Takeaways from BEA’s Latest FDI Data

October 22, 2019

Kimberly Aagard is a Research Analyst at SelectUSA

With the latest update of the Bureau of Economic Analysis (BEA) foreign direct investment (FDI) data recently released, the Investment Research team at SelectUSA couldn’t resist an opportunity to delve into the numbers and to follow up from our colleague’s previous post.

In 2018, the inward position of FDI in the United States totaled $4.3 trillion, which was an increase of eight percent from 2017. [Note: This statistic measures investment from the foreign ultimate beneficial owners (UBOs) that drive the decision to invest in the United States.] Over the past five years, the compound annual growth rate of the inward FDI position in the United States has been a strong 9.8 percent.

The largest six markets by UBO maintained their 2017 rankings of FDI position into the United States in 2018: in order, the United Kingdom ($597.2 billion), Canada ($588.4 billion), Japan ($488.7 billion), Germany ($474.5 billion), Ireland ($385.3 billion), and France ($326.4 billion). Together, these markets were the ultimate point of origin for more than 65 percent of all FDI in the United States – almost $2.9 trillion!

top 6 sources of US FDI 102219

Many of the markets that are the largest sources of FDI into the United States also have FDI positions that are growing quickly. Belgium, Bermuda, Canada, China, Ireland, and South Korea are among both the top 15 largest and the top 15 fastest-growing sources of FDI in the United States by position. In addition, Argentina, the fastest-growing market for FDI in the United States in 2018, had a compound annual growth rate from 2013 to 2018 of 57.9 percent! [Note: The metric for the fastest-growing sources of FDI ranks only markets with 2018 FDI stock in the United States valued at least $1 billion.]

world map for BES-FDI Data Blog 102219

Source: SelectUSA calculations based on FDI data from the Bureau of Economic Analysis. www.bea.gov Accessed October 2019.

While the United Nations Conference on Trade and Development (UNCTAD) found that global FDI flows continued to decline from 2017 to 2018, the United States retained its dominant position as the top destination worldwide for FDI in 2018. Annual flows can fluctuate from year to year; however, FDI flows (which are measured by foreign parent instead of UBO) into the United States still totaled more than $250 billion in 2018.

When examining the FDI position in the United States by industry of the U.S. affiliate, the share of the position of each industry remained largely similar from 2017 to 2018. The manufacturing sector continued to make up the largest share, at almost 41 percent of the total FDI position in the United States in 2018. However, retail trade had the largest year-over-year growth in its position among industries from 2017 to 2018 (67.2 percent), followed by the real estate and rental and leasing sector (42.4 percent).

In 2018, manufacturing also made up the largest industry sector of FDI coming to the United States from almost all regions of the world: Europe, Asia and Pacific, Canada, Latin America, and the Middle East. The only region where manufacturing was not the largest sector of FDI was Africa, for which data on manufacturing FDI was suppressed.

BEA FDI blog-Position of FDI graphic 102219

Source: Bureau of Economic Analysis. www.bea.gov Accessed October 2019.

Stay Current on FDI
If you’d like more information about this latest release, SelectUSA recently hosted a webinar with BEA experts to discuss the data. You can find a recording of that webinar here.

Keep your eyes open for BEA’s next data release on FDI topics in November: the Activities of U.S. Affiliates of Foreign Multinational Enterprises (MNEs) series, which indicates the number of U.S. jobs, the level of spending on research and development (R&D), and the value of U.S. exports supported by FDI in the United States.

For more information on FDI in the United States, sign up for email updates from SelectUSA and visit SelectUSA.gov for resources such as FDI fact sheetsinteractive data tools, and informative reports. You can also follow and contribute to our #FDIintheUSA campaign on Twitter!

 About SelectUSA
Housed within the U.S. Department of Commerce’s International Trade Administration, SelectUSA promotes and facilitates business investment in the United States.

This post contains external links. Please review our external linking policy.

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The Intersection of Manufacturing & FDI: Job Creation

October 4, 2019

SelectUSA’s Investment Research Team works to create an environment where data inspires, supports, and informs investment policy and promotion.

This Manufacturing Day we are highlighting the positive impact of investors in manufacturing. Whether a business decides to expand existing operations in the United States, or a new international investor opens a manufacturing plant for the first time, U.S. communities reap rewards. These benefits can be seen in stories across the country.

Re-selecting the USA
Earlier this year, SelectUSA released a report titled Reinvesting in the USA: A Case Study of Reshoring and Expanding in the United States. It profiled six examples of U.S.-based businesses that chose to reshore or expand operations in the United States rather than abroad. Each of these companies had a positive impact on the U.S. workers they employed and the communities surrounding them – the kind of real-world details about manufacturing that can often get lost in macroeconomic analysis.

Companies such as Sherrill Manufacturing support U.S. jobs with their dedication to manufacturing in the United States. Between 2013 and 2014, Sherrill reshored its entire operation from Mexico to a facility in upstate New York. Sherrill’s “factory-to-table” model not only allows consumers to purchase directly from the manufacturer, but also enabled the company to more than double manufacturing employment at its New York facility. Today, Sherrill Manufacturing employs more than 50 workers.

Sherrill’s investment also supports a historic manufacturing community in upstate New York, ranging from suppliers who provide the company with U.S.-made steel to small businesses that serve manufacturing workers, such as the local pizza parlor. By choosing to reinvest in the United States, Sherrill Manufacturing has helped strengthen the local manufacturing industry, enhancing employment and the economic gains that accompany it.

The Bigger Picture: FDI in U.S. Manufacturing
It is also useful to look at the macroeconomic data on manufacturing investment in the United States. Our colleagues at the Bureau of Economic Analysis provide robust data on foreign direct investment (FDI) in the United States each year. In 2018, investment in the manufacturing sector represented 41 percent of the total FDI position in the United States, up from 32 percent in 2008. With a compound annual growth rate (CAGR) of 13 percent during the last five years, FDI in U.S. manufacturing is outpacing the all-industry comparable CAGR of 10 percent economy-wide growth. This increased representation of manufacturing in the U.S. FDI portfolio speaks to U.S. manufacturing competitiveness in the global economy.

FDI has an undeniable impact on the U.S. economy and U.S. workers. According to the latest available data, FDI directly supported nearly 2.5 million manufacturing jobs in 2016. This means that investment by foreign-owned firms in the United States was responsible for 20 percent of all U.S. manufacturing employment that year.

Of all source markets in 2016, Japan supported the largest number of jobs in the manufacturing industry (approximately 397,000), followed by Germany (287,800), the United Kingdom (275,600), and France (213,300). Of the FDI in manufacturing subsectors, transportation equipment supported the most jobs (509,900), followed by chemical manufacturing (364,400), and food manufacturing (301,000).

Where is manufacturing FDI going in the United States?
FDI in the manufacturing industry supports jobs in all U.S. states, territories, and the District of Columbia. Not surprisingly, the states with the highest levels of employment supported by manufacturing FDI are some of the most populous in the nation: California (where approximately 200,000 FDI manufacturing jobs are supported – the highest total of any state) and Texas (181,500).

In addition, manufacturing FDI is responsible for a significant component of overall employment resulting from FDI. In 10 states, the majority of FDI-supported jobs are in the manufacturing sector, with the highest percentage in South Dakota (66 percent of jobs supported by FDI resulting from the manufacturing sector), Michigan (64 percent), and Nebraska (63 percent).

Percentage of FDI Employment in Manufacturing 2016

Graphic for SUSA Mfg Blog 100219
Data Source: Bureau of Economic Analysis. Accessed 9/2019.

On a regional basis, the total employment resulting from FDI in manufacturing was highest in the Southeast (698,500) and the Great Lakes (590,900). However, the average employment level of a Great Lakes state resulting from manufacturing FDI was more than twice as high as that in a Southeast state (118,180 on average in a Great Lakes state compared to 58,208 in a Southeast state). As a result, more than 51 percent of all FDI-supported employment in the Great Lakes was in the manufacturing sector.

SelectUSA Loves Manufacturing in the United States
Whether you’re looking at a favorite local restaurant’s day-to-day business or state-level economies, domestic manufacturing’s contributions cannot be understated. Both the FDI of international companies in the United States and the reinvestment efforts of domestic firms provide this key support. On this Manufacturing Day, we’d like to applaud them and the hardworking U.S. workers they employ!

For more information
For more information on FDI in the United States, sign up for email updates from SelectUSA and visit SelectUSA.gov for resources such as FDI fact sheetsinteractive data tools, and informative reports. You can also follow and contribute to our #FDIintheUSA campaign on Twitter!

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Privacy Shield and GDPR

October 1, 2019

by Alex Greenstein, Privacy Shield Director

In April 2016, the European Union (EU) replaced its 1995 Data Protection Directive with the General Data Protection Regulation (GDPR). As companies in the EU and beyond review their data protection policies to ensure compliance with this law, many are asking how GDPR impacts the three-year-old EU-U.S. Privacy Shield Framework.

Background on GDPR
Effective May 2018, GDPR governs the commercial use of the personal data, requiring companies to follow certain data protection practices.American And European Union Flag Pair On A Desk Over Defocused Background

The regulation applies to all EU-based companies, as well as companies outside the EU that receive EU personal data in offering goods and services or in monitoring EU individuals’ behavior. GDPR also governs the transfer of EU personal data to companies outside the EU.

GDPR has garnered a great deal of attention globally and has incentivized many companies to review and update their privacy and cross border data flow policies. The International Trade Administration at the U.S. Department of Commerce engages regularly with the U.S. business community to promote wider awareness of the GDPR’s new requirements. ITA’s Office of Digital Services Industries (ODSI) has also partnered with the U.S. Commercial Service team at the U.S. Mission to the European Union in outreach efforts.

For additional information about GDPR, click here.

 Relationship with Privacy Shield
Privacy Shield is not a GDPR compliance mechanism, but rather a means that enables participating companies to meet the EU requirements for transferring personal data to third countries, as discussed in Chapter V of the GDPR.

GDPR’s Article 45 explicitly provides for the continuity of prior European Commission (EC) adequacy determinations, like the adequacy decision regarding Privacy Shield adopted by the Commission in July 2016, under the 1995 Data Protection Directive. Accordingly, the EC’s adequacy determination for Privacy Shield remains valid under the GDPR.

Negotiators from both the U. S. Government and the European Commission accounted for the GDPR’s new substantive and procedural requirements as they developed the Privacy Shield Framework in 2016. Privacy Shield’s joint annual review, for example, was designed to satisfy the GDPR requirement for review of European Commission adequacy determinations once every four years. Privacy Shield’s annual review exceeds this requirement.

In addition, the Privacy Shield Framework created the Ombudsperson mechanism, which provides an unprecedented new channel for EU and Swiss individuals to seek an independent review regarding national security access to personal data transferred to the United States. This mechanism applies not only to data transferred pursuant to the Privacy Shield Framework, but also to other EU-approved data transfer mechanisms, such as Standard Contractual Clauses and Binding Corporate Rules, further enabling transatlantic commerce while protecting privacy.

To learn more about the Privacy Shield Frameworks, visit www.privacyshield.gov and check out our two-pager here.

The Privacy Shield Team is part of the Office of Digital Services Industries (ODSI) in the International Trade Administration (ITA) at the U.S. Department of Commerce. ODSI promotes privacy policy frameworks that facilitate the free flow of data across borders, leads policy discussions on privacy with international partners, and addresses trade and commercial issues on evolving information and communications technology (ICT) services. It operates within ITA’s Industry & Analysis business unit, which helps to create the conditions for U.S. industry to innovate and compete globally.

This post contains external links. Please review our external linking policy.

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Business Incentives Continue to Play a Key Role in U.S. FDI Leadership

September 17, 2019

SelectUSA is a program led by the U.S. Department of Commerce that facilitates and promotes job-creating business investment into the United States

Global companies are drawn to the United States for many reasons: a highly productive and educated workforce, low-cost supply of energy, direct access to the world’s most robust capital markets, and mucmoreBut how much of our nation’s continued success in this arena should be attributed to incentives given to businesses by state and local governments? They receive a great deal of attention, but how much do companies actually consider incentives when determining where to invest?

Business executives are quite forthcoming with answers to the question. Many of the companies that SelectUSA has assisted have made it clear: incentives are a very important consideration, but not the most important one. Companies consider a mix of variables and factors: costs, location, supply chains, ease of doing business, etc. Consistently, the United States stands out as the best place to do business.SelectUSA_FullColor-hires_575 (002)

The United States has topped the A.T. Kearney FDI Confidence Index seven years in a row. The Index, a survey of global CEOs’ confidence in the world’s markets, highlights the top factors considered in business expansion and how markets stack up. In 2019, pro-business regulations, competitive tax rates, and economic expansion helped lead to another year of U.S. leadership in international investment. But economic incentives were also ranked among the top of the list of considerations.

State and local governments create incentives packages for companies in order to attract investment and create job opportunities in their local areas. Often given on the basis of job creation or economic impact, incentives can include grants, loans, tax and job training subsidies. These incentive packages can sometimes total in the millions or billions of dollars, but their size is contingent on the magnitude of the proposed business project. The federal government also offers a wide array of incentives, from clean energy production tax credits to export credit insurance for small businesses.

The investment process itself can seem complicated, and many companies don’t know where to start. Luckily SelectUSA is here to help companies navigate the process and connect with the right resources and incentives at the local level. Visit selectusa.gov to learn more. The United States is open for your business.

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The EU-U.S. and Swiss-U.S. Privacy Shield Frameworks: Why They Matter

September 13, 2019

by James Sullivan, DAS for Services, Industry and Analysis

The EU-U.S. Privacy Shield Framework marked its third anniversary on August 1st. Just this week, on September 12-13, the U.S. Department of Commerce and the European Commission conducted the Third Annual Joint Review of the Privacy Shield program (Review) in Washington, D.C.

In connection with the Review, the International Trade Administration (ITA) is spotlighting the origins of the Privacy Shield and its importance for transatlantic commerce.

What is Privacy Shield?
The EU-U.S. and Swiss-U.S. Privacy Shield Frameworks were designed by the U.S. Government and the European Commission and Swiss Administration, respectively, to provide companies with a mechanism to transfer data from the European Union (EU) or Switzerland to the United States while complying with EU and/or Swiss data protection requirements.

At its core, the Privacy Shield Frameworks establish robust and enforceable protections for the personal data of EU and Swiss individuals as companies transfer the data to the United States. The Frameworks require transparency from participating companies on how they use personal data, as well as strong oversight from the U.S. government, all in collaboration with EU and Swiss data protection authorities.

Companies participating in the Privacy Shield program commit to provide privacy protections determined to be adequate under EU and Swiss laws. While signing up for the Frameworks is voluntary, once a company self-certifies to the U.S. Department of Commerce and publicly declares its adherence to the Privacy Shield Principles, the commitments are enforceable under U.S. law.

With the global economy increasingly dependent on cross-border data flows, the Frameworks are vital for U.S. organizations currently doing business or looking to pursue  business opportunities in Europe.

A Short History, a Major Achievement
In July 2016, the European Commission determined that the EU-U.S. Privacy Shield Framework provides adequate privacy protections for the personal data of EU individuals. Shortly thereafter on August 1, 2016, ITA began accepting and processing self-certification applications. A similar arrangement with Switzerland followed in January 2017. Since that time, ITA has taken a number of steps to further strengthen the implementation of both Frameworks.

Just this month, , the EU-U.S. Privacy Shield and the Swiss-U.S. Privacy Shield reached milestones of having more than 5,000  and more than 3,300 participating companies, respectively. A full list of Privacy Shield participants is available at www.privacyshield.gov/list.

These participating organizations represent a wide variety of industry sectors and sizes, and more than 70 percent of participants are small and medium-sized businesses. All participants transfer data to the United States and have a presence there, with many U.S. subsidiaries of European companies having also joined the Frameworks.

PS Overview Blog Pie Chart 091319

Privacy Shield participants range from small companies (revenue less than $5 million) to large companies (revenue more than $5 billion).
Source: Office of Digital Services Industries (ODSI), Industry & Analysis, ITA.

A Transatlantic Win
U.S., EU, and Swiss companies are key Privacy Shield beneficiaries, as the Frameworks provide a clear mechanism to comply with data protection requirements when transferring personal data from the EU or Switzerland to the United States. By bridging the different regulatory systems in Europe and the United States, transatlantic commerce is preserved and promoted. In addition, compliance requirements are clear and cost-effective, which especially helps small and medium enterprises seeking to do business with Europe.

To join Privacy Shield, a company is required to self-certify with ITA and publicly commit to comply with the Frameworks’ requirements. The decision to participate in Privacy Shield is completely voluntary, but the public commitment is enforceable under U.S. law by the Federal Trade Commission or the U.S. Department of Transportation. The self-certification process is designed to be as clear and efficient as possible, and ITA officials are available to help companies along the way.

Any U.S. company certified under Privacy Shield must provide relevant individuals with information on personal data collected, including why it was collected and how it will be used. Privacy Shield also gives individuals options for limiting the use and disclosure of their personal data.

Finally, under Privacy Shield, EU and Swiss individuals for the first time have a defined channel to raise questions regarding U.S. government intelligence practices pertaining to their data. Privacy Shield also offers multiple avenues for filing complaints and seeking redress, and free independent dispute resolution to address other data protection concerns.

Why Does Privacy Shield Matter?
The economic implications of cross-border data flows are immense. Digital data flows underpin the $7.1 trillion in trade and investment between the United States and Europe.

Furthermore, they allow businesses in all sectors to cooperate across the Atlantic, engage in research and development with their counterparts, connect with global supply chains, and share data with subsidiaries located in different countries.

An increasingly digital economy also enables even the smallest companies to participate in the global marketplace—so long as they can transfer data across national borders to facilitate trade, investment, and innovation.

Moreover, by creating clear, enforceable personal data protection obligations on companies, Privacy Shield enables participating companies to better protect the privacy of their customers, promoting trust. Such trust ensures greater consumer confidence in the use of digital services and helps grow the market, creating jobs and opportunity, while providing valuable services to consumers.

To learn more about Privacy Shield and its importance to a successful transatlantic relationship, go to: https://www.privacyshield.gov.

Businesses interested in joining Privacy Shield can start the self-certification process here: https://www.privacyshield.gov/PrivacyShield/ApplyNow.

The Office of Digital Services Industries (ODSI) in the International Trade Administration (ITA) at the U.S. Department of Commerce promotes privacy policy frameworks that facilitate the free flow of data across borders, leads policy discussions on privacy with international partners, and addresses trade and commercial issues on evolving information and communications technology (ICT) services. It is part of ITA’s Industry & Analysis business unit, which helps to create the conditions for U.S. industry to innovate and compete globally.

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BEA’s New FDI Numbers Point to Sustained Economic Growth for the USA

August 23, 2019

This post contains external links. Please review our external linking policy.

Audrey Cheng is an intern for SelectUSA

Graphic stating: FDI IN THE USA, $4.34 TRILLION, 7.1 MILLION U.S. JOBS DIRECTLY SUPPORTEDThe data is in: the United States Bureau of Economic Analysis (BEA) released the most recent numbers for global foreign direct investment (FDI) into the United States, and they’re good news for the country’s continued prosperity. Total stock of FDI in the United States reached $4.34 trillion in value in 2018. This is an incredible $319.1 billion increase from 2017, when we had just surpassed $4 trillion in FDI.

Here is a breakdown:

  • The largest increases were in the industries of manufacturing, retail trade, and real estate.
  • Manufacturing accounted for 40.8 percent of the total FDI value in the United States, followed by 12.1 percent in finance and insurance.
  • Based on the country of the ultimate beneficial owner, five countries accounted for more than half of all the FDI in the United States. These countries aren’t just top sources of FDI – they represent the strongest economic relationships in the world. In order, they are: The United Kingdom, Canada, Japan, Germany, and Ireland.
  • Majority foreign-owned companies in the United States earned income of $208.1 billion on their cumulative investment in the United States. This is nearly 20 percent higher than in 2017.

To all of us at SelectUSA, this increase in investment is an assuring pat on the back but not a surprise. It reinforces what we know: America is the premier destination in the world for FDI.

As we look back at the BEA numbers of the past fiscal year, we are also looking toward a positive future. The 2019 A.T. Kearney Confidence Index ranked the United States as the nation likely to receive the most FDI in the coming three years. The World Bank’s Doing Business 2019 named us among the top nations globally for the ease of doing business—and number one among countries with populations more than 100 million.

This shows that the United States is doing all the right things to give companies the opportunities they need to be competitive. Businesses of all sizes have recognized that our huge consumer base, productive workforce, and pro-business policies here are unparalleled anywhere else in the world.

The U.S. economy is thriving and the continued increase in FDI will create even more career opportunities for hardworking Americans into the future. SelectUSA will continue to make sure that companies have all the resources they need to be successful in the United States.

To learn more about SelectUSA’s services, the U.S. business and investment climate, and how FDI benefits the U.S. economy, visit selectusa.gov and follow @SelectUSA on Twitter.

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The Next Investment Advisory Council is Here

August 13, 2019

Samuel Biddick is an intern at SelectUSA

Representatives from more than two dozen economic development organizations and business executives from across the United States will soon provide something invaluable to the federal government: their expertise on how the Administration can best attract and utilize the largest amount of foreign direct investment in the world. Today, Secretary of Commerce Wilbur Ross announced appointments to the department’s Investment Advisory Council (IAC). This group of 25 doesn’t only represents a diverse array of real-world business insight and experience; It represents the Department of Commerce’s continued commitment to American competitiveness.  

board meetingThe Council advises the Secretary of Commerce on strategies and proposals to ensure that the United States remains the world’s preeminent destination for foreign direct investment (FDI). This includes how policy should be developed, adapted, and expanded based on real market conditions. The diverse areas of expertise represented within the Council have allowed past appointees to make policy recommendations regarding issues including infrastructure investment priorities, improving U.S. workforce development initiatives, and creating/improving digital tools to support economic development – all to ensure that the United States remains the best place in the world to do business.

FDI is critically important to the nation’s continued economic growth and prosperity. It supports more than 14 million U.S. jobs and is responsible for $370 billion of U.S. goods exports. With a total FDI stock of $4.34 trillion, no other country attracts more business investment. The Department of Commerce aims to keep it that way. That’s why these 25 experts appointed to the IAC represent state and regional economic development teams, and global and domestic businesses from multiple industry sectors from across the United States. Their unique insight and recommendations will inform and strengthen the administration’s open-investment policy.

The new IAC will hold its first meeting soon, allowing new appointees to continue and build on the work of the first Council. We look forward to their recommendations and insight. For more information, including names and updates, please visit www.selectusa.gov/iac.