US President Donald Trump signed an executive order on February 11, directing the Justice Department to halt the enforcement of the Foreign Corrupt Practices Act (FCPA), a law that has prohibited US-based companies from bribing foreign officials since 1977.
The order comes after US President Donald Trump said “It’s a disaster for this country, and I guess it was a Jimmy Carter concept and it sounds so good but it’s so bad. It hurts the country and many many deals are unable to be made because of it. Nobody wants to do business because they don’t want to feel like every time they pick up a phone, they’re going to jail. So, we’ll sign this and it takes courage to sign it because you only get bad publicity when you sign it. Sounds so nice, the title is so lovely. But, its an absolutely horror show for America. So we are signing it because that’s what we have to do to make it good.”
Review of FCPA Enforcement
The executive order mandates Attorney General Pam Bondi to review both current and past FCPA enforcement decisions and establish new guidelines. Trump has repeatedly expressed his dissatisfaction with the law, claiming that it hinders American businesses by making them vulnerable to investigations and indictments while doing business abroad.
In the order, Trump emphasized that the FCPA’s strict enforcement has created an uneven playing field for US companies, putting them at a disadvantage against international competitors who engage in practices like bribery without facing similar scrutiny.
He argued that this policy hurts American businesses and national security by limiting their ability to gain commercial advantages globally.
White House Fact Sheet
A White House fact sheet explained that the executive order was aimed at restoring American competitiveness and security by revising the enforcement of FCPA guidelines.
The White House also highlighted that since Trump took office, he has signed multiple executive actions designed to enhance the US economy, including renegotiating trade deals and reducing regulations that hinder business.
Global Reactions
While Trump and his administration argue that the order will benefit the US economy, anti-corruption groups, including Transparency International, have stressed that the FCPA has made the US a leader in addressing global corruption.
The shift in policy is likely to provoke mixed reactions globally.
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