June 20, 2011

OFII Commends Administration’s Commitment to an Open Economy

Washington, DC- Today President Obama issued an open investment policy statement reiterating the United States’ longstanding commitment to an open economy. The President’s statement sends a critically important message to global business, showing the U.S. is open for business and values the high-end jobs the U.S. operations of foreign companies create for American workers. President Obama is the first Democratic President in 30 years to issue such a statement.

 “We applaud President Obama for listening to the concerns of global business and showing leadership on international economic policy issues,” said Nancy McLernon, President & CEO of the Organization for International Investment. “Today’s release of an open investment statement tells the world’s businesses that the U.S. welcomes their investment.”

 The President’s statement is aimed at promoting policies that incentivize more globally headquartered companies to invest in the U.S. and boost employment. It follows on the heels of an Executive Order signed last week to create a government–wide initiative, SelectUSA, which will actively market the U.S. as a location for foreign companies.

 “The over 5 million jobs created by the U.S. operations of global companies stimulate our economy, create high-wage jobs, enhance productivity and foster competiveness. And, with other countries aggressively working to attract global companies, the Administration’s recent actions show a dedicated understanding of how to utilize the maximum benefits of the global economy,” said McLernon.

 The Role of U.S. Subsidiaries in the American Economy:

• Jobs & Payroll: U.S. subsidiaries of global companies employ over 5 million Americans and support an annual payroll of $408.5 billion;
• Manufacturing: U.S. subsidiaries heavily invest in the American manufacturing sector; 38 percent of the jobs at U.S. subsidiaries are in manufacturing, accounting for 13 percent of total American manufacturing jobs;
• Unions: 12.4 percent of the U.S employees of U.S. subsidiaries are covered by a union collective-bargaining agreement, compared with the union-represented share of employment of all U.S. business of just 8.2 percent;
• Exports: U.S. subsidiaries manufacture in America to export goods around the world — accounting for more than 18 percent of all U.S. exports, or $232.4 billion;
• Reinvestment: U.S. subsidiaries reinvest an annual $93.1 billion in their U.S. operations;
• Taxes: U.S. subsidiaries pay nearly 17 percent of total U.S. corporate tax payments.

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The Organization for International Investment is a Washington-based business association representing U.S. subsidiaries of global companies. For additional information, see OFII’s web site at www.ofii.org.