America First Investment Policy aims to facilitate investment from "allies and partners"
21 Feb 2025
On 21 February 2025, the Government of the United States of America published The America First Investment Policy, which aims to boost investment from allies by facilitating investments, while also increasing restrictions on "foreign adversaries" for reasons of national security. The restrictive measures under the policy are detailed in the IPM database: https://investmentpolicy.unctad.org/investment-policy-monitor/measures/4987/united-states-of-america-america-first-investment-policy-increases-restrictions-on-fdi-from-and-to-foreign-adversaries- .
The policy reiterates that the United States of America remains open to investment, including in artificial intelligence and other emerging technologies. For this reason, it seeks to facilitate investment from "allies and partners", as well as passive investment—defined as "non-controlling stakes and shares with no voting, board, or other governance rights and that do not confer any managerial influence, substantive decision-making power, or non-public access to technologies, technical information, products, or services"—which is welcome from all countries.
Key provisions of the policy include the following:
• The policy creates an expedited "fast-track" process for reviewing investments from allies and partner nations, particularly in sectors like advanced technology. It mentions that the process will allow for “appropriate security provisions, including requirements that the specified foreign investors avoid partnering with United States foreign adversaries”.
• The policy also indicates that the use of open-ended mitigation agreements (agreements to address national security concerns from foreign investments through compliance obligations) will cease, in favour of more streamlined agreements emphasizing concrete actions within clear timelines.
• To facilitate significant investments, the policy also mandates faster environmental reviews for projects exceeding $1 billion.
• More administrative resources will be directed toward facilitating investments from key partner countries.
The implementation of the “America First Investment Policy” will proceed through a combination of agency rulemaking, potential legislative actions, and interagency coordination. The exact timelines and outcomes will evolve as these processes unfold.
Nature of measure:
Type:
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Entry and establishment (Approval and admission - screening)
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Treatment and operation (Other)
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Promotion and facilitation (Investment facilitation )
Industry:
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Services (Electricity, gas, steam and air conditioning supply, Publishing, audiovisual and broadcasting activities, Telecommunications, Computer programming, consultancy and related activities, Scientific research and development)
Inward FDI:
No
Outward FDI:
No
Sources:
