Investment Policies Related to National Security - A Survey of Country Practices

Wehrlé, F. and J. Pohl (2016), “Investment Policies Related to National Security: A Survey of Country Practices”, OECD Working Papers on International Investment, 2016/02, OECD Publishing, Paris.

Posted: 23 Jun 2016 Last revised: 24 May 2017

See all articles by Frederic Wehrle

Frederic Wehrle

Organisation for Economic Cooperation and Development (OECD)

Joachim Pohl

Organization for Economic Co-Operation and Development (OECD) - Investment Division

Date Written: June 14, 2016

Abstract

While many countries have become ever more open and welcoming for foreign investment, the awareness of risks for national security stemming from or related to international investment has increased. Many governments have thus introduced policies that seek to protect their national security with the smallest possible impact on investment flows. Guidelines for recipient country investment policies relating to national security adopted at the OECD in 2009 provide recommendations for the design and implementation of such policies.

This paper reviews commonalities and differences of policies implemented in 54 countries with a special focus on arrangements in 17 economies that have explicit policies in this area. It offers a comparative analysis of countries’ investment policy approaches to address national security concerns stemming from foreign investment; classifies the different forms of restrictions to address these concerns; identifies differences between restrictions on ownership and acquisitions; and presents how countries define the scope of application of their policies.

The study also assesses how countries have implemented some of the key principles set out in the 2009 Guidelines in actual policy in order to meet their need to safeguard national security while reducing the impact of these policies on international investment.

Keywords: international investment, national security, CFIUS

JEL Classification: F52, F53

Suggested Citation

Wehrle, Frederic and Pohl, Joachim, Investment Policies Related to National Security - A Survey of Country Practices (June 14, 2016). Wehrlé, F. and J. Pohl (2016), “Investment Policies Related to National Security: A Survey of Country Practices”, OECD Working Papers on International Investment, 2016/02, OECD Publishing, Paris., Available at SSRN: https://ssrn.com/abstract=2799322

Frederic Wehrle

Organisation for Economic Cooperation and Development (OECD) ( email )

2 rue Andre-Pascal
Paris, 75016
France

Joachim Pohl (Contact Author)

Organization for Economic Co-Operation and Development (OECD) - Investment Division ( email )

2 rue André Pascal
Paris, 75775
France

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