Foreign Investment Screening

Foreign investment screening in Global Commerce Policy

In this regard, foreign investment screening is: a mechanism operated by many countries to ensure that projects financed with foreign investment meet national development objectives and economic needs tests, and that foreign equity in specific sectors or companies does not exceed legal limits. Screening also aims to promote bona-fide investment proposals. The importance of foreign investment screening for trade policy stems from the fact that some see it as capable of being a trade impediment in cases where foreign investment is essential for effective market access. The screening process may result in the refusal of an application to invest and therefore to a denial of market access. See also Exon-Florio amendment and pre-establishment.[1]

Foreign investment screeningin the wold Encyclopedia

For an introductory overview on international trade policy, see this entry.

Resources

Notes and References

1. Dictionary of Trade Policy, “Foreign investment screening” entry (OAS)

See Also