Biden Administration Economic Policies and Foreign Investment in the USA

On  February 4th, the EACC in Lyon, France with co-sponsorship with our EACC chapter held this webinar. Interest was strong as we had 160 registrants. The program focused on three of Biden’s economic initiatives: the American Rescue Plan, Infrastructure modernization under the Build Back Better, and his Buy American Executive Order, signed on  January 25th.  Our member, Eliot Norman, of TRANSATLANTIC Partners LLC,  reports that the $1.9 trillion American Rescue Plan will use the budget reconciliation process that requires only a 51-50 vote in the Senate and is expected to be enacted in late March. For foreign investors, it will create opportunities for companies working with school systems, municipalities, and health care providers. It is unlikely there will be any immediate minimum wage increase to $15 per hour as part of the deal.

The Buy American regulations are important. They are President Biden’s version of “Make it Here” and will require important re-examinations of supply chain logistics, particularly if the European company is dependent on key suppliers from China and Asia. 

Buy American restrictions are expected to carry over to any large infrastructure projects, which will push American manufacturing to focus on renewable energy and other green initiatives. President Biden announced the goal of doubling our offshore wind capacity by 2030 and there are large projects already underway off the coastlines of North Carolina and Virginia. We anticipate that foreign Tier 1 or Tier 2 suppliers may relocate here as a result. 

Another important aspect of the webinar introduced the International Build-up Fund offered by Bpifrance. It provides government co-investment in M&A deals in the U.S. for French companies between $4 MM and $34 million.  

The video recording and slides from the Webinar are available at the links below.  Eliot Norman hopes to organize a follow-up event in June to look back at the first 6 months of the Biden Administration and its impact for the rest of 2021 on foreign investment.