President Trump’s Executive Order Seeks to Reevaluate the Impact of the Foreign Corrupt Practices Act on U.S. Competitiveness

On Monday, President Trump ordered a temporary suspension of a federal law. This law, called the Foreign Corrupt Practices Act, aims to curb corruption in multinational companies. Trump argued that the law creates an uneven playing field for U.S. businesses.

The regulation, implemented in 1977, prohibits U.S. companies from paying bribes to foreign officials in exchange for contracts. Although the law has been in effect for years, its enforcement was intensified in 2005, especially in countries with ingrained bribery practices.

Trump criticized the law for being “abused,” which harms U.S. interests. According to his executive order, the law’s enforcement hinders foreign policy objectives.

The order suspends new investigations and actions under this law for 180 days. Additionally, existing investigations will be reviewed to adjust the law’s enforcement. The attorney general is also instructed to issue new guidelines aimed at enhancing U.S. competitiveness and the efficient use of federal resources.