President Donald Trump has paused the enforcement of a law that criminalizes American businesses that bribe foreign officials in an executive order signed on Monday.
The order, which directs the Department of Justice (DOJ) to stop enforcing the Foreign Corrupt Practices Act (FCPA), is intended to further American economic growth by eliminating excessive barriers to American commerce abroad.
‘It sounds good on paper, but in practicality, it’s a disaster,’ Trump said about the FCPA.
‘It means that if an American goes over to a foreign country and starts doing business over there illegally, legitimately or otherwise, it’s almost a guaranteed investigation indictment. And nobody wants to do business with the Americans because of it,’ Trump continued.
According to the DOJ, the FCPA was enacted in 1977 to make it ‘unlawful for certain classes of persons and entities to make payments to foreign government officials to assist in obtaining or retaining business.’
However, the act has been ‘stretched beyond proper bounds and abused in a manner that harms the interests of the United States.’ Enforcing the FCPA also ‘actively harms American economic competitiveness and, therefore, national security,’ the order states.
In an effort to eliminate excessive barriers to American businesses overseas, U.S. Attorney General Pam Bondi has also been directed, through the executive order, to review the FCPA for the following 180 days and revise reasonable enforcement guidelines.
‘President Trump is stopping excessive, unpredictable FCPA enforcement that makes American companies less competitive,’ a White House fact sheet stated. ‘U.S. companies are harmed by FCPA overenforcement because they are prohibited from engaging in practices common among international competitors, creating an uneven playing field.’
‘The title is so lovely, but it’s an absolutely horror show for America,’ Trump said. ‘So we’re signing it because that’s what we have to do to make it good… It’s going to mean a lot more business for America.’