EU publishes export control and FDI screening reports
The European Union has published reports – on FDI [foreign direct investment] screening (the first since the FDI screening legislation came into force in June 2020), and on the application of dual-use export control regulation.
Key findings on FDI screening, it said, were that:
- ‘The Commission screened 265 transactions notified by Member States under the report until end of June 2021 (now the teller is above 400);
- 80% of the transactions did not justify further investigation and were thus assessed by the Commission in just 15 days;
- Most notifications for screening from Member States concerned the manufacturing sector, ICT, wholesale and retail.
- The top five countries of origin of investors among notified FDI cases were companies located in: the United States, the United Kingdom, China, Canada and the United Arab Emirates;
- The Commission issued an opinion in less than 3% out of 265 screened cases.’
It said that the report on export controls (compiled before the entry into force of EU dual-use regulation 821/2021) ‘found that dual-use exports represent about 2.3% of total EU exports. Out of a total number of 30,292 applications for and notifications of exports under licences, 603 transactions (exports) were denied (in 2019) representing about 0.02% of total exports. This would put the value of dual-use trade at €119 billion in 2019.’
Executive Vice-President and Commissioner for Trade, Valdis Dombrovskis said: ‘The EU remains open to trade and foreign investment – this is a pillar of our job creation and economic growth. But our openness is not unconditional and it needs to be balanced by appropriate tools to safeguard our security and public order. Foreign investment screening and control of exports of dual use goods help keep the EU safe, while protecting human rights. They are key elements of our open, sustainable, and assertive trade policy. These two reports highlight how these tools can help the Commission and competent Member State authorities to act decisively when the situation demands, defending our interests while promoting our values.’
