The United States and Mexico plan to form a foreign investment screening task force aimed at protecting against national security threats, U.S. Treasury Secretary Janet Yellen said Thursday.
Yellen and Mexican Finance Minister Rogelio Ramirez de la O reached an agreement at the end of her three-day visit to Mexico City, during which she also sought to advance the fight against fentanyl and deepen economic ties between the northern neighbors America.
“Both countries benefit when they work together to protect against foreign investment that poses national security risks,” Yellen said in a statement.
The pact does not mention specific countries or investments of interest. However, the Committee on Foreign Investment in the United States (CFIUS), a government agency that assesses foreign investment risks to US national security, has recently scrutinized TikTok, which is owned by Chinese conglomerate ByteDance.
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This month, Washington also proposed new rules on its electric vehicle subsidies, limiting what materials manufacturers can source from Chinese companies and others, as officials clarified how the companies could be considered a foreign entity of concern.
“This task force recognizes that US national security is linked to the security of our allies and partners, including our North American neighbors,” said Paul Rosen, Assistant Secretary of the Treasury for Investment Security.
He also noted the benefits of a “common” understanding of national security risks when it comes to foreign investment.
The task force is expected to have “regular exchanges of information on how investment screening can better protect national security,” the Treasury Department added.
The U.S.-Mexico agreement recognizes the role of effective investment review mechanisms, particularly regarding technologies, critical infrastructure and sensitive data, the Treasury Department said.
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CFIUS works with governments around the world in its stated goal of helping to strengthen their tools for vetting foreign investment.
However, the Finance Ministry added that both countries continue to promote an open investment climate in the region.
Source: AFP