Investment Opportunities in the United States
Protection of Foreign Investment
- Bilateral Investment Conventions Signed By the United States
- USA is a signatory to 46 conventions.
UNCTAD allows you to visualize the list of conventions signed by USA, and to download these conventions.
- International Controversies Registered By UNCTAD
- USA has been involved in one case of disagreement concerning foreign investment. UNCTAD offers a database listing disagreements and the countries involved, complementary information about the evolution of settlement of international disputes concerning investment.
- Organizations Offering Their Assistance in Case of Disagreement
- ICCWBO , International court of arbitration, International chamber of commerce
ICSID , International Center for settlement of Investment Disputes
- Member of the Multilateral Investment Guarantee Agency
- USA has been a member since its creation.
The MIGA website gives a detailed description of all the guarantees it proposes.
Country Comparison For the Protection of Investors
|Index of Transaction Transparency*||7.0||6.0||5.0|
|Index of Manager’s Responsibility**||9.0||5.2||5.0|
|Index of Shareholders’ Power***||9.0||6.8||5.0|
|Index of Investor Protection****||8.3||6.0||5.0|
Source: Doing Business
Note: *The Greater the Index, the More Transparent the Conditions of Transactions. **The Greater the Index, the More the Manager is Personally Responsible. *** The Greater the Index, the Easier it Will Be For Shareholders to Take Legal Action. **** The Greater the Index, the Higher the Level of Investor Protection.
Procedures Relative to Foreign Investment
- Freedom of Establishment
- Acquisition of Holdings
- A majority holding interest in stock of a local company is legal in the US (with a few exceptions).
- Obligation to Declare
- The reference text for foreign investments is the International Investment Survey Act of 1976. Each State has its own regulation aiming at or having an incidence on Foreign Direct Investments and of which the inspiration is more or less liberal.
- Competent Organization For the Declaration
- International Trade Administration
- Requests For Specific Authorizations
- Investments shall be governed by sector specific policies and procedures.
Office Real Estate and Land Ownership
- Possible Temporary Solutions
- Regulation of land ownership is primarily an area of state concern.
- The Possibility of Buying Land and Industrial and Commercial Buildings
- Risk of Expropriation
- In the United States, the right for the government to take private real or personal property predates the constitution and goes back to English Common Law. This right was implicitly recognized in the Fifth Amendment to the U.S. Constitution in 1791
- Forms of Aid
- At a federal and State level, foreign investors may be granted funding allowances such as long-term subsidized loans. In order to encourage new businesses in their territories, the States have started a competitive battle aimed at offering investors the best services and advantages possible.
Foreign companies can benefit from aid, granted by three federal agencies:
- The EDA (Economic Development Administration) offers long term loans, with preferential rates for projects of creation and of activity extension leading to new immobilizations and jobs creation.
- The Small business Administration (SBA) offers guarantees for loans contracted by SME and can finance plants construction or material purchase by mid and long term loans.
- The Rural Development (depending on the Ministry of Agriculture - USDA) can garantuee up to 90% of the loans granted to commercial companies that create jobs in rural zones.
- Privileged Geographical Zones
- Arizona has become the ideal base for companies that need to reach out to the world.
- Free Zones
- Arizona also offers a unique Foreign Trade Zone Program, which provides qualifying companies with the lowest effective property tax rates available in the US.
- The Key Sectors of the National Economy
- High Potential Sectors
- Renewable energy.
- Privatization Programs
- The energy sector (privatization program being studied)
- Tenders, Projects and Public Procurement
- USA Export Import, USA Government Procurement
Tenders Info, Tenders in United States
DgMarket, Tenders Worldwide
Sectors Where Investment Opportunities Are Fewer
- Monopolistic Sectors
- The monopolistic sectors are: energy and Defense
- Sectors in Decline
- Investment in energy research and development in the U.S. is declining despite calls for an enhancement of the nation's capacity for innovation to address environmental, geopolitical, and macroeconomic concerns.
Finding Assistance For Further Information
- Investment Aid Agency
- EDA (Economic Development Administration)
Development (depending on the Department of Agriculture - USDA)
- Other Useful Resources
- United Nations Conference on Trade and Development
- Doing Business Guides
- International Trade Administration, invest in America
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