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Defense Trade: Enhancements to the Implementation of Exon-Florio Could Strengthen the Law’s Effectiveness
Ann M. Calvaresi-Barr (au)
The 1988 Exon-Florio amendment to the Defense Production Act authorizes the Pres. to suspend or prohibit foreign acquisitions of U.S. companies that may harm national security, an action the Pres. has taken only once. Implementing Exon-Florio can pose a significant challenge because of the need to weigh security concerns against U.S. open investment policy -- which requires equal treatment of foreign & domestic investors. Exon-Florio’s investigative authority was delegated to the Comm. on Foreign Investment in the U.S. -- an interagency comm. established in 1975 to monitor U.S. policy on foreign investments. In Sept. 2002, a report was issued on the implementation of Exon-Florio. This report further examines that implementation. Tables.
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