Loopy Loophole
By Jeffrey Birnbaum

Democratic senators Charles E. Schumer (N.Y.) and Claire McCaskill (Mo.) want to close a little-noticed "loophole" that allows representatives of foreign companies to register as domestic lobbyists and not as foreign agents.

Skeptics might dismiss their plan as a political ploy. After all, the presidential campaign of John McCain-- which both senators are trying to defeat -- is heavy with former lobbyists for foreigners.

Still, their proposal would have real impact if enacted. Registration as a foreign agent requires compliance with stricter disclosure rules.

But at least one lobbyist says the measure would close a loophole that doesn't really exist.

Todd M. Malan is president of the Organization for International Investment, the lobby for foreign companies with U.S. subsidiaries -- companies such as Michelin and Nestlé.

He has been telling lawmakers that the senators' Closing the Foreign Lobbying Loophole Act would make U.S. lobbyists for Nortel, the Canada-based cellphone maker, register as foreign agents, while Washington reps for Nortel's competitor, U.S.-based Motorola, could register under the less demanding domestic-lobbying statute.

Both companies are international firms with shareholders all over the world and substantial business in the United States, Malan said, but they just happen to have headquarters across a common border.

"I would be surprised," Malan said by e-mail, "if either of them [the senators] really want to discriminate against constituent companies or their employees."

Maybe. Maybe not. This is an election year after all.