1. Promoting Business Investment in the United States: SelectUSA Services for U.S. State and Local Economic Development Organizations
Tazeem Pasha
Manager, Global Business Attraction
SelectUSA, U.S. Department of Commerce
Friday, September 28, 2012
© International Trade Administration 2012

2. About SelectUSA
SelectUSA was created by the Executive Order of the President of the United States in June 2011.
The Executive Order outlines:
The Administration’s policy on business investment
The establishment and functions of the SelectUSA initiative
The Interagency Investment Working Group
Suggested Talking Points:
The United States in unequivocally open to international investment. With SelectUSA, we are actively engaging with firms, organizations, and other stakeholders that are interested in investing in the United States.
Established by Executive Order of the President in June 2011, SelectUSA is the first U.S. government-wide initiative to facilitate business investment attraction, retention, and expansion in the United States.
There is unprecedented international competition for FDI faced by U.S. states, regions, and U.S. economic development organizations. In the last three decades, the worldwide stock of FDI has grown from $700 million in 1980 to $19 trillion in Attracting more FDI to the United States is key to promoting economic and job growth. SelectUSA is geographically neutral and represents the entire nation. In doing so, we work with our states and regions to promote the U.S. investment climate.
© International Trade Administration 2012

3. About SelectUSA
SelectUSA was in the Office of the Secretary until Nov. 3 when it came into the Commercial Service
Primary U.S. Government Effort to Support Business Investment in the United States
Geographically neutral in the United States
What We Do:
Act as Information Clearinghouse
Act as Ombudsman
Act as Advocate
Connect Investors with U.S. States
Provide Policy Guidance
Educate Investors
Provide Guidance to U.S. Economic Development Organizations
Co-chair the Interagency Investment Working Group
Suggested Talking Points:
Structure: SelectUSA is housed in the U.S. Department of Commerce (DOC) within the U.S. Commercial Service (CS) of the International Trade Administration (ITA). SelectUSA has an interagency mission and works across U.S. government departments to provide an investor with a single point of contact. The U.S. Departments of State and Commerce collaborate closely on its unified mission to promote the United States for business investment.
Clients: SelectUSA services support state, regional, and local economic development organizations.
Services: SelectUSA supports EDO’s and investors in the United States and around the world by:
Promoting the benefits of investing in the United States
Responding to inquiries about the U.S. business climate
Helping investors encountering confusion, delays, or obstacles in a federal regulatory process
Advocating on behalf of the U.S. government in a globally competitive business location decision
Offering guidance on rules, regulations, procedures and policy positions that impact our global competitiveness
Offering aftercare to companies that have already invested in the United States
© International Trade Administration 2012

4. Investment Process and SelectUSA Services
Establishing the business
Maintaining success in the United States
Help firms locate federal programs and incentives for business retention and expansion
Identify and work to remove barriers to success in cooperation with federal agencies
Provide information on U.S. policies and help firms comply with regulations in setting up and operating their business
Work directly with firms to resolve any problems on a case-by-case basis
Deciding where, how, and with whom to invest
Connect firms with local or state resources for investment opportunities and incentives
Connect firms to industry associations for industry-specific information and potential business partners
Understanding the U.S. investment climate
Help firms learn about
The ease and benefits of doing business in the U.S.
The profiles of different U.S. industries
Foreign direct investment statistics
© International Trade Administration 2012

5. Information Clearinghouse
SelectUSA Services:
Information Clearinghouse
SelectUSA provides actionable information to firms to help them…
Incorporate a business in the U.S.
Understand basic U.S. tax and legal concepts
Learn about incentives available to businesses in the U.S.
Connect with U.S. state, city, or regional economic development offices to learn about investment opportunities
Apply for a business-related visa
Foreign investors can communicate with SelectUSA by phone or in Washington, DC, or meet with members of the U.S. Foreign Commercial Service around the world.
© International Trade Administration 2012

6. Ombudsman Assistance SelectUSA Services: Client
SelectUSA works across the federal government on a case-by-case basis to:
Address investor concerns and issues
Connect with a federal agency/ office to seek insight into a specific case
Offer direct communication between the relevant federal agency and the client
Identify federal regulations or processes to U.S. policy makers, that may negatively impact the U.S. business climate
The SelectUSA Ombudsman function is considered business sensitive and administered strictly by the SelectUSA HQ:
SelectUSA does not share company information
SelectUSA may report on the types of federal regulations, countries, industry sectors and other aggregate information about cases to determine the efficacy of its ombudsman function
Client
Select
USA
Federal
Agency
© International Trade Administration 2012

7. Services for EDOs Develop a data-driven FDI attraction strategy
SelectUSA Services:
Services for EDOs
SelectUSA has the expertise to help state and local economic development organizations:
Develop a data-driven FDI attraction strategy
Collaborate within their region
Invest in an information-rich website
Ensure foreign operations’ productivity through the use of meaningful metrics
Secure organizational funding tied to multi-year performance
Explore additional measures, including retention and expansion or company partnerships with local universities
SelectUSA.gov 7

8. Help U.S. EDOs in FDI Promotion
SelectUSA Services:
Help U.S. EDOs in FDI Promotion
Single Location Promotion (SLP)
Tailor-made events developed collaboratively, promoting individual U.S. jurisdictions as FDI destinations.
For example:
SHANGHAI
Promotion event for State of Louisiana (e.g. presentation by FDI practitioners or a match-making reception)
One-on-one meetings between Louisiana and Chinese government representatives
Meetings with Chinese companies that Louisiana has identified
© International Trade Administration 2012

9. Outreach and Engagement
SelectUSA Services:
Outreach and Engagement
Domestic and International Outreach: Raise awareness about the U.S. investment climate by leveraging platforms that maximize impact upon clients. Outreach channels include:
Integrated media campaign including earned press coverage, publishing articles to highlight the U.S. climate, targeted advertising and other initiatives
Introducing investment promotion opportunities to U.S. EDOs like trade missions, in-market visits, single location promotion programs and other initiatives
Extending the SelectUSA expertise to targeted programs that maximize its exposure to its clients through speaking opportunities, seminars and conferences
Training programs for multipliers like U.S. EDOs, USG agencies and others that interface with SelectUSA clients through their own organizations
Advocacy Cases: Individual U.S. state, local, and regional EDOs often compete against national level foreign governments in site selection competitions. To level the playing field, SelectUSA can, when appropriate, promote the U.S. business climate to a potential investor in an ongoing project that may be at risk, and when a federal-level engagement can convey the appropriate support. Senior leadership in USG, DOC, or ITA will be asked to engage on behalf of a U.S. EDO to help tilt the scale in favor of that investment being made in the U.S. If a U.S. governor, mayor, or county executive requests this support, the case must be referred to SelectUSA HQ staff to manage.
SelectUSA.gov
© International Trade Administration 2012

10. Outreach and Engagement
SelectUSA Services:
Outreach and Engagement
SelectUSA Memoranda of Intent with China, India, Russia and Turkey
October 2009: China Investment Promotion Agency (CIPA)
The U.S. and China agreed to pursue strengthened bilateral investment ties, expanded business cooperation between U.S. and Chinese enterprises, and enhanced economic growth opportunities.
November 2009: Invest India
“Today’s agreement will enhance promotion of FDI that leads to increased exports…, playing an integral role in getting Americans back to work.”
(Michelle O’Neill, Acting Under Secretary of Commerce for International Trade)
April 2010: Russian Ministry of Economic Development
The U.S. and Russia agreed to pursue strengthened bilateral investment ties, expanded business cooperation between U.S. and Russian enterprises, and enhanced economic growth opportunities.
January 2011: Republic of Turkey Prime Ministry Investment Support and Promotion Agency (ISPAT)
The U.S. and Turkey agreed to be the central point of contact for existing and potential foreign investors seeking information and opportunities and to provide mutual assistance to investors in contacting investment and industry experts in the other country
SelectUSA.gov
© International Trade Administration 2012

11. FDI and the U.S. Economy 5.3 million $41 billion $163 billion
18%
33%
Workers Employed by U.S. Affiliates of Foreign Firms in the U.S. in 2010
Amount U.S. Affiliates of Foreign Firms spent on R&D in the U.S. in 2010
Amount U.S. Affiliates of Foreign Firms Spent on Capital Investments in 2010
Size of FDI Flows into the U.S. in 2011
Amount of Wages Paid to Employees of U.S. Affiliates of Foreign Firms in 2010
Percent of all U.S. exports come from U.S. subsidiaries of foreign firms in 2010
U.S. Affiliates of Foreign Firms On average Pay 33% More than the economy-wide average in 2009
Suggested Talking Points (Slides 3 and 4):
Business investment by both domestic and foreign firms leads to economic growth by impacting U.S. jobs and exports. - Foreign investment plays an important role in the U.S. economy:
- Foreign-owned companies operating in the United States support over 5.3 million U.S. jobs,
- U.S. subsidiaries of foreign-owned firms account for 21 percent of all U.S. exports, and
- The $2.3 trillion stock of FDI in the United States is equivalent to nearly 18 percent of U.S. GDP.
Source: Bureau of Economic Analysis
© International Trade Administration 2012

12. Global Inbound FDI Stock (1980 - 2010)
Example: Global FDI Trends
Global Inbound FDI Stock ( )
Amount in $ Millions
Figures available on market value basis
Source: UN Conference on Trade and Development
© International Trade Administration 2012
SelectUSA.gov

13. Share of Global FDI Flows Captured by the United States
Example: U.S. FDI Trends
Share of Global FDI Flows Captured by the United States
While overall, the United States is the largest recipient of FDI, the overall trend indicates that it receives a decreasing share of a growing pie. During the 1990s, we received approx. 25% of global FDI. Today, our share is less than 15 percent. The bottom line is that multinational enterprises have many choices when it comes to business location. Other markets have aggressive national-level outfits that engage these companies and attract them to their economies. The United States must engage with these firms at a level playing field to communicate that it remains the world’s largest, most stable market with incomparable advantages for a multinational firm.
Source: UN Conference on Trade and Development (UNCTAD)
© International Trade Administration 2012

14. 2011 FDI Position in the United States
U.S. FDI Trends
Top 10 FDI Stock Positions, 2011
5% | $132.5b
10% | $244.6b
2%|$58.6b
21% | $527.8b
10% | $265.4b
8% | $201.9b
12% | $293.8b
2% | $53.1b
4% | $98.2b
5% | $126.1b
Rank
2011 FDI Position in the United States
Billion USD 1
United Kingdom
527.8 2
Japan
293.8 3
Germany
265.4 4
Canada
244.6 5
France
201.9 6
Netherlands
132.5 7
Switzerland
126.1 8
Ireland
98.2 9
Australia
58.6 10
Belgium
53.1
Source: Department of Commerce, Bureau of Economic Analysis – FDI by Ultimate Beneficiary Owner
© International Trade Administration 2012

15. U.S. FDI Trends Top 10 FDI Growth Markets, 2011 22.4% | $29.1b
Fastest Growing Sources of FDI in the United States, by Compound Annual Growth Rate
( )
Rank
Country
Growth Rate
Billion USD 1
Israel
78.59%
26.8 2
China
71.25%
9.5 3
New Zealand
56.14%
6.0 4
India
40.81%
9.8 5
Ireland
38.58%
98.1 6
Belgium
33.40%
53.1 7
Singapore
28.84%
22.4 8
Spain
25.57%
48.0 9
United Arab Emirates
23.38%
17.4 10
Norway
22.40
29.1
23.4% | $17.4b
26% | $9.8b
28.8% | $22.4b
56.1% | $6.0b
Note: Numbers denote 5 year compound annual growth rate ( ) of the stock FDI position and the total stock of FDI in the United States
Source: Department of Commerce, Bureau of Economic Analysis – FDI by Ultimate Beneficiary Owner
© International Trade Administration 2012

16. Top U.S. Export Markets are also among the top sources of FDI
Example: U.S. FDI Trends
Top Export Markets, 2010
Canada: $249.1
Australia: $21.8
UK: $48.4
Germany: $48.2
Netherlands: $34.9
France: $26.9
Belgium: $25.5
Mexico: $163.3
Brazil: $35.4
China: $91.9
Japan: $60.5
S. Korea: $38.8
Singapore: $29.0
Hong Kong: $26.5
India: $19.2
Top U.S. Export Markets are also among the top sources of FDI
Figures in USD Billions
Source: Bureau of Economic Analysis
© International Trade Administration 2012

17. U.S. FDI Trends
Industry breakdown of total U.S. FDI stock ($2.5 trillion)
© International Trade Administration 2012
Source: Department of Commerce, Bureau of Economic Analysis

18. Source: Department of Commerce, Bureau of Economic Analysis
FDI and the U.S. Economy
Top 10 FDI Growth Sectors in the United States (Compound annual growth rate in FDI position between 2006 and 2011 on a historical cost basis)
*“Other Manufacturing” does not include food, chemicals, primary and fabricated metals, machinery, computers and electronic products, electrical equipment, appliances and components, and transportation equipment.
Source: Department of Commerce, Bureau of Economic Analysis
© International Trade Administration 2012

19. What SelectUSA does NOT do
(and why not)
SelectUSA does NOT …
Because…
 Generate investor leads
Violates geographic neutrality
Domain of state/local U.S. EDOs
 Promote one U.S. location over another
-Violates geographic neutrality
 Provide direct assistance to foreign firms
- U.S. government does not offer direct assistance to any firms
 Match- making
 Invitation Letters for Visas
Outside of SelectUSA scope
SelectUSA.gov
© International Trade Administration 2012

20. Thank You Tazeem Pasha Manager, Global Business Attraction SelectUSA
U.S. Department of Commerce Tel:
SelectUSA.gov