The Foreign Service Journal, February 2011

22 F O R E I G N S E R V I C E J O U R N A L / F E B R U A R Y 2 0 1 1 Doing Its BIT Toward this end, for more than a year now the Obama administra- tion has been reviewing the Bilat- eral Investment Treaty framework, mindful that such agreements are a useful tool in creating jobs in the United States and in achieving en- vironmental goals, such as pro- gress against climate change. The administration has been exploring BIT negotiations with China and India, an agenda that should be expanded to include the Euro- pean Union and Japan. However, the process will move slowly until the White House and Congress reach a meet- ing of the minds on related issues. In particular, trade and investment agreements should include guarantees that neither party will lower labor and environmental standards in order to attract investment. The Committee on Foreign Investment in the United States has proved to be a good tool for balancing the benefits of an open investment policy with the need to protect that narrow class of U.S. businesses whose foreign acquisition could threaten national security. The State Department must continue to play a strong leadership role in CFIUS. Transportation and Telecommunications The State Department’s expertise on international transportation and telecommunications issues is a price- less asset. Through the Open Skies policies of recent decades, the State Department and Transportation De- partment have totally transformed the international avi- ation system. Still, new challenges loom on the horizon, including opening up aviation to international investment flows and working out internationally efficient means for that sector to help meet the challenge of global climate change. Telecommunications and the industries associated with the Internet have been, and will probably continue to be, drivers of the global economy. International gov- ernance of telecommunications will undoubtedly expand tremendously during the next half-century. The inter- ests of the United States will be best served by ap- proaches that are industry-friendly, market-oriented and designed to protect our security interests. Increasing flows of investment — both inbound and outbound — will be essential if the United States is to preserve its leadership in this sector. Eradicating Bribery and Corruption In order to achieve a transformed international econ- omy that produces a recovery that is balanced and sus- tainable, the international systemmust be free of bribery and corruption. Towards the end, the OECD Anti- Bribery Convention provides an international framework loosely modeled on the U.S. Foreign Corrupt Practices Act. In the United States, enforcement of the FCPA has been vigorous. We cannot rest on our laurels, however. Europe is improving its performance in identifying and prosecuting international bribery, though much needs to be done. (Japan’s performance is perceived by Trans- parency International to be lagging.) F O C U S Development inevitably involves coordination with other agencies, other donors and the private sector.