Chamber Hails Removal of Restrictions On Foreign Investment in U.S. Telecom

WASHINGTON, D.C. – The United States Chamber of Commerce today hailed removal of restrictions on foreign investment in U.S. telecom companies from the Commerce, State, Justice appropriations bill. The Chamber joined with labor unions and free trade advocates to successfully encourage Congress to strip the provisions.

"Putting up walls to foreign investment – at a time when the U.S. is working to lower trade barriers and open markets around the world – would have been a huge step in the wrong direction," said Thomas Donohue, Chamber President and CEO. "Fears that foreign investment may unduly influence our telecommunications industry are unfounded. National security interests, while paramount, are not the issue. The issue is whether a new law is needed – and it is not."

Ample controls already exist to protect our national interests, according to the Chamber. The Federal Communications Commission (FCC) has the authority to refuse a license and all substantial foreign investment in U.S. firms is currently subject to review and approval by the interagency Committee on Foreign Investment. Legislation that would have mandated new, arbitrary restrictions on investments by foreign firms with more than 25 percent government interest would have had a chilling effect throughout the U.S. telecommunications industry.

"Thankfully, Congress has turned back an effort to tie the hands of the investment community, preserving the ability of telecom firms to raise needed investment capital," Donohue said.

Donohue said bipartisan congressional action to strike language limiting certain types of foreign investment in the telecom industry protects the U.S. from possible World Trade Organization sanctions for anti-competitive behavior.

"The Chamber will continue to work with the AFL-CIO and Communications Workers of America and other interested parties to ensure that this type of legislation doesn't recur," said Donohue.

The U.S. Chamber of Commerce is the world's largest business federation representing more than three million businesses and organizations of every size, sector and region.

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