Discusses the Exon-Florio Provision of the Omnibus Trade & Competitiveness Act. It gives the President of the United States the power to prohibit or to prevent on a temporary basis a non-U.S. corporation from merging with or acquiring a U.S. corporation when the transaction could potentially impair U.S. national security. The Note examines U.S. legislation that regulates direct investment and argues that the U.S. Congress should amend Exon-Florio in order to focus and strengthen the Provision's application to transactions involving U.S. defense production companies. Part I of this Note sets forth the existing procedural and administrative requirements of Exon-Florio and explains several modifications to the Provision that Congress has recently enacted. Part II outlines additional proposed modifications to Exon-Florio that have been presented before Congress and considers such proposals with respect to a recent case involving the Provision. Part III argues that Congress should amend Exon-Florio in order to focus and confine the Provision's application to national defense. This Note concludes that such modifications would be justifiable because they would define national defense as a narrow exception to the traditional U.S. globalist trade policy and, consequently, benefit all those involved in international mergers, acquisitions and takeovers in the United States.
Robert N. Cappucci,
Amending the Treatment of Defense Production Enterprises Under the U.S. Exon-Florio Provision: A Move Toward Protectionism or Globalism,
16 Fordham Int'l L.J. 652
Available at: http://ir.lawnet.fordham.edu/ilj/vol16/iss3/4