Tournament:  | Round:  | Opponent:  | Judge: 

Inherency

Contention 1- the Status Quo

The United States currently submits all foreign investment deals related to oil and gas production to the Committee on Foreign Investment in the United States, known as CFIUS. These restrictions chill foreign investment and send a signal of US protectionism.

Wilson Center 5-31-12 (Chinese Investment in North American Energy, http://www.wilsoncenter.org/event/chinese-investment-north-american-energy)

While Chinese foreign energy investment is on the rise, the more notable story is

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companies, which will allow China’s companies to better extract resources at home.

Protectionism

Contention 2- Protectionism:

Global trade is on the brink of collapse- rising US protectionism risks global escalation.

Lincicome 12 (Scott, trade attorney, “Is Missing American Trade Leadership Beginning to Bear Protectionist Fruit? (Hint: Kinda Looks Like It),” June 12, http://lincicome.blogspot.com/2012/06/is-missing-american-trade-leadership.html)

Over the past few years, I and several other US trade-watchers have

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its long-held place at the front of the trade liberalization pack.

And, restrictions on oil and gas investments explode the scope of CFIUS reviews. This expansion of the CFIUS process is a protectionist tool to keep out investment.

Carroll-Emory International Law Review-09 (James, COMMENT: BACK TO THE FUTURE: REDEFINING THE FOREIGN INVESTMENT AND NATIONAL SECURITY ACT'S CONCEPTION OF NATIONAL SECURITY, 23 Emory Int'l L. Rev. 167)

II. Post 9/11 Application of Exon-Florio After 9/11

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that Reagan threatened to veto in order to strip the economic security provisions.

And, these investment restrictions undermine US trade leadership and triggers retaliation. The impact is global wars.

Carroll-Emory International Law Review-09 (James, COMMENT: BACK TO THE FUTURE: REDEFINING THE FOREIGN INVESTMENT AND NATIONAL SECURITY ACT'S CONCEPTION OF NATIONAL SECURITY, 23 Emory Int'l L. Rev. 167)

C. Economic Retaliation as a Result of CFIUS Protectionism Continued use of Exon-

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own interests to take any action that may destabilize the American economy. 182

And, protectionism collapses the global economy, sparks great power conflict, and exacerbates all global problems.

Patrick, Senior Fellow-CFR, 09 (Stewart, senior fellow and director of the Program on International Institutions and Global Governance at the Council on Foreign Relations, “Protecting Free Trade,” National Interest, March 13, 2009, http://nationalinterest.org/article/protecting-free-trade-3060?page=show)

President Obama has committed to working with U.S. trade partners to avoid

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daily economic intelligence briefing, distilling the security implications of the global crisis.

And, none of their trade offense applies- protectionism is unquestionably bad- best studies.

Bhagwati, CFR Senior Fellow, 10 (Jagdish, University Professor of Law and Economics at Columbia University and Senior Fellow at the Council on Foreign Relations, renowned expert on international trade, he has served as the Special Adviser to the UN on globalization, “How to demolish protectionist myths,” July 5, http://www.guardian.co.uk/commentisfree/2010/jul/05/free-trade-protectionist-myths)

Evidently, the pessimism and despair that often overwhelms free traders today is unwarranted.

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include services. To which the free trader responds: no problem there!

And, clarifying the definition of national security solves tit-for-tat protectionism

Rosen and Hanemann 09 (Daniel, and Thilo, China’s Changing Outbound Foreign Direct Investment Profile: Drivers and Policy Implications, June, http://www.iie.com/publications/pb/pb09-14.pdf)

Limiting national security concerns in an era of high-value mergers and acquisitions:

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both by maximizing its asset values and preventing tit-fortat treatment abroad.

And, Unilateral FDI liberalization is key to prevent trade policy backsliding which dooms global economic recovery.

Erixon and Sally, directors-ECIPE, 10 (Fredrik and Razeen, European Centre for International Political Economy, TRADE, GLOBALISATION AND EMERGING PROTECTIONISM SINCE THE CRISIS, http://www.ecipe.org/media/publication_pdfs/trade-globalisation-and-emerging-protectionism-since-the-crisis.pdf) [italics are from original source]

We think Mr. Bentham’s world-view will cause damage, not only to

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of a piece with open markets, economic globalisation and international political stability.

And, Doha’s collapse doesn’t matter- it just makes the risk of protectionism worse.

Bhagwati 6-24 (Jagdish, “Doha’s Retreat,” 2012, http://blogs.the-american-interest.com/bhagwati/2012/07/24/dohas-retreat/)

But I cannot conclude without commenting on the different but related issue of Protectionism which

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from indifference or complacency, it bodes ill for the world trading system.

Economy

Contention 3- the Economy:

Chinese FDI in the US is on the brink. Politicization of the CFIUS process threatens this investment.

Rosen and Hanemann 11 (Daniel, principal at RHG and Adjunct Professor at Columbia, and Thilo, Research Director- the Rhodium Group, Chinese FDI in the United States is taking off: How to maximize its benefits?, http://www.vcc.columbia.edu/content/chinese-fdi-united-states-taking-how-maximize-its-benefits)

China’s outward foreign direct investment (OFDI) grew rapidly in the past decade,

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a test case for how the United States deals with these new realities.

And, the lack of a list of allowed industries results in investment chilling across the board- it undermines faith in the entire CFIUS process.

Xu et al 12 (Ting, with Thieß Petersen and Tianlong Wang, Cash in Hand: Chinese Foreign Direct Investment in the U.S. and Germany, June, http://www.bfna.org/sites/default/files/publications/Cash%20In%20Hand.pdf)

As a result of the different regulatory environment for Foreign Direct Investment and different considerations

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investment which creates new jobs or safeguards employment in Germany is highly welcomed.

And, energy restrictions chills ALL foreign investment, destroying investor confidence, which crushes the dollar and triggers economic recession.

Carroll-Emory International Law Review-09 (James, COMMENT: BACK TO THE FUTURE: REDEFINING THE FOREIGN INVESTMENT AND NATIONAL SECURITY ACT'S CONCEPTION OF NATIONAL SECURITY, 23 Emory Int'l L. Rev. 167)

B. National Security and Investor Uncertainty The uncertain interpretation of national security in Exon

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investment is more vital than ever to provide liquidity to American markets. 164

We’re on the brink of a double dip recession- boosting investor confidence is key.

Rickards, 12 (James, economist and investment banker with 35 years of experience working in capital markets on Wall Street and the author of NYT Bestselling book Currency Wars: The Making of the Next Global Crisis, “Why We Should Still Be Worried about a Double-Dip Recession,” February 27, 2012, http://www.usnews.com/opinion/blogs/economic-intelligence/2012/02/27/why-we-should-still-be-worried-about-a-double-dip-recession)

The late summer and fall of 2011 was filled with fears of a double-

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certainty returns and, on current form, that may be years away.

And, economic decline causes great power war.

Royal 2010

Jedediah, Director of Cooperative Threat Reduction at the U.S. Department of Defense, “Economic Integration, Economic Signaling and the Problem of Economic Crises,” in Economics of War and Peace: Economic, Legal and Political Perspectives, ed. Goldsmith and Brauer, pg. 213-215

Less intuitive is how periods of economic decline may increase the likelihood of extern conflict

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not featured prominently in the economic-security debate and deserves more attention.

And, diversionary war theory is true- best models prove.

Pickering and Kisangani 2009 – department of political science at Kansas State, citing the International Military Intervention dataset (Jeffrey and Emizet, British Journal of Political Science, 39:483-515, “The dividends of diversion”, ProQuest)

CONCLUSIONS In his seminal review of diversionary research, Jack Levy contends that most diversionary

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the democracy ages, and democratic norms and institutions become more deeply entrenched.

And, independently, decline of the dollar collapses hegemony.

Paul, executive director-Global Policy Forum, 03 (James A, Fall of the Dollar, Global Policy Forum, August, http://dspace.cigilibrary.org/jspui/bitstream/123456789/21885/1/Fall%20of%20the%20Dollar.pdf?1)

Implications of the Dollar’s Decline As the dollar has continued to fall, US authorities

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in the very same direction for the global order based on US dominance.

And, American hegemony prevents multiple scenarios for nuclear war.

Kagan 07 (Robert, Senior Associate at the Carnegie Endowment for International Peace and Senior Transatlantic Fellow at the German Marshall Fund, “End of Dreams, Return of History,” Policy Review n 144, July 17, http://www.hoover.org/publications/policy-review/article/6136)

The jostling for status and influence among these ambitious nations and would-be nations

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a retraction of American influence and global involvement will provide an easier path.

No turns- US dominance is critical to international peace and economic growth- any shift to a multipolar world will produce conflict.

Kagan 12 (Robert, Brooking’s Senior Fellow of Foreign Policy, Center on the United States and Europe, “Why the World Needs America,” Feb 11, http://www.brookings.edu/research/articles/2012/02/11-us-power-kagan)

History shows that world orders, including our own, are transient. They rise

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what the world looked like right before the American order came into being.

And, foreign investment is critical to economic growth- FDI boosts jobs, RandD, innovation, and multiple industrial sectors.

Stagg 2007 Jonathan, JD candidate University of Iowa, NOTE: Scrutinizing Foreign Investment: How Much Congressional Involvement Is Too Much? November, 2007 93 Iowa L. Rev. 325

CFIUS, the group the President has designated to investigate foreign-investment transactions,

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half of 2006, a 169% increase over the previous year. 43

And, the plan is a quick injection of capital which is critical to economic recovery.

Xu et al 12 (Ting, China and Economy consultant for Bertelsmann Stiftung, with Thieß Petersen and Tianlong Wang, Cash in Hand: Chinese Foreign Direct Investment in the U.S. and Germany, June,

http://www.bfna.org/sites/default/files/publications/Cash%20in%20Hand%20Second%20Edition%20final.pdf)

Although Chinese FDI has drawn increasing attention in the U.S. and Germany

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in bringing those countries that are facing a credit crunch back to growth.

Relations

Contention 4- US-China relations:

Conflict over US foreign investment restrictions risks shattering the US-China relationship. Only the plan sends a strong signal of cooperation towards China.

Xu 11 (Ting, senior project manager-Bertelsmann Foundation, The Next Big Threat to US-China Ties, July 13, http://thediplomat.com/2011/07/13/the-next-big-threat-to-us-china-ties/)

The United States and China have long lobbed verbal grenades across the Pacific, each

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a win-win situation that would also boost Sino-American collaboration.

And, CFIUS restrictions on Chinese energy investment undermines the economic interdependence that assures peace between US and China.

Dorn, CATO China specialist, 07 (James, “The Rise of China Engagement or Protectionism? US Policy towards China,” GLOBAL DIALOGUE Volume 9 ● Number 1–2 ● Winter/Spring 2007, http://www.worlddialogue.org/content.php?id=395)

Treasury Secretary Paulson is correct to urge institutional change in China rather than narrowly focus

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. If they couldn’t sell in America, they would fall apart.”11

And, absent the plan, a nationalist backlash is inevitable and escalates to war.

Dorn 05 (James A, China specialist and VP for academic affairs at Cato, U.S.-China Relations in the Wake of CNOOC, CATO Policy Analysis, Nov 2, http://www.cato.org/pubs/pas/pa553.pdf)

The message that Congress should send China is the message Liu Junning, an independent

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will depend on sound free-market policies, not on destructive protectionism.

Collapse of relations risks nuclear war.

Wittner 11 (Wittner, Emeritus Professor of History at the State University of New York/Albany and former editor of Peace and Change, a journal of peace research, “COMMENTARY: Is a Nuclear War with China Possible?,” November 28, http://www.nytimes.com/2012/06/13/opinion/avoiding-a-us-china-war.html)

While nuclear weapons exist, there remains a danger that they will be used.

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that of the world, they should be working to encourage these policies.

And, the plan strengthens the overall relationship.

Marchick, Managing Director, Carlyle Group, 12 (David, Fostering Greater Chinese Investment in the United States, Policy Innovation Memorandum No. 13, February, http://www.cfr.org/china/fostering-greater-chinese-investment-united-states/p27310)

China recently became the world's second-largest economy and has emerged as the world's

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the United States have either been approved or have not required any approval.

And, recent official statements prove these investment restrictions are a critical issue in the relationship.

Xu et al 12 (Ting, with Thieß Petersen and Tianlong Wang, Cash in Hand: Chinese Foreign Direct Investment in the U.S. and Germany, June, http://www.bfna.org/sites/default/files/publications/Cash%20In%20Hand.pdf)

Many U.S. experts recognize the potentially enormous future benefit from growing Chinese

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welcome Chinese investment and in particular, to treat the SOEs equally. 4

Plan

Thus the plan:

The United States Federal Government should exclude crude oil and natural gas production from Exon-Florio reviews.

Solvency

Contention 5-Solvency:

Narrowing the definition of national security to exclude “energy assets” insulates the CFIUS process from protectionist manipulation.

Carroll-Emory International Law Review-9 23 Emory Int'l L. Rev. 167

COMMENT: BACK TO THE FUTURE: REDEFINING THE FOREIGN INVESTMENT AND NATIONAL SECURITY ACT'S CONCEPTION OF NATIONAL SECURITY

Conclusion Exon-Florio should be amended to more narrowly define national security. The

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by embracing globalization and cooperation can the United States truly achieve national security.

And, oil and gas are the key energy issues for CFIUS.

Ellis-Vinson and Elkins LLP-6/1/07

US energy and foreign direct investment: Is the foreign capital flow for oil and gas at risk?

http://www.ogfj.com/articles/print/volume-4/issue-6/capital-perspectives/us-energy-and-foreign-direct-investment-is-the-foreign-capital-flow-for-oil-and-gas-at-risk.html

Energy has traditionally been an area of some concern for CFIUS. In fact,

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energy-related - a trend that has continued thus far in 2007.

And, the US should clarify that energy production does not undermine national security-- explicitly exempting specific industries from CFIUS review is key.

Pane 05 (Marc, studied ILaw at Fordham, worked for the Office of the Principal Defender for the Special Court for Sierra Leone, CNOOC’s Bid for UNOCAL: Now is the Time to Improve theExon-Florio Amendment, http://www.scribd.com/doc/61823408/CNOOC-s-Bid-for-UNOCAL-Now-is-the-Time-to-Improve-the-Exon-Florio-Amendment)

What does this all mean for Exon-Florio? Almost since its enactment,

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from global energy markets might result in a greater risk of supply disruption).

Clarification of CFIUS priorities should focus on specific industries to green-light.

Xu et al 12 (Ting, with Thieß Petersen and Tianlong Wang, Cash in Hand: Chinese Foreign Direct Investment in the U.S. and Germany, June,

http://www.bfna.org/sites/default/files/publications/Cash%20In%20Hand.pdf)

CFIUS should develop and make public both a list of strategic industries and a set

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multilateral channels of engagement to make improvements and upgrades to the investment climate.