The Bureau of Economic Analysis (BEA), part of the U.S. Department of Commerce, published a notice in the Federal Register on January 16, 2026, inviting public comments on the proposed renewal of its BE-13 Survey of New Foreign Direct Investment in the United States. This action, taken under the Paperwork Reduction Act of 1995, allows 60 days for feedback before submission to the Office of Management and Budget (OMB) for approval. The survey, which remains unchanged in the proposal, gathers essential data on acquisitions, establishments, and expansions by foreign investors in U.S. businesses. It plays a critical role in assessing the scale and economic effects of foreign direct investment (FDI), defined as ownership or control of at least 10 percent of a U.S. enterprise's voting securities or equivalent interest. By mandating reports from qualifying entities, the BE-13 ensures BEA's broader FDI statistics are accurate and complete, informing policy and economic analysis amid growing global investment flows.
Background and Purpose of the BE-13 Survey
The BE-13 survey operates under the authority of the International Investment and Trade in Services Survey Act, enacted in 1976 and amended in 1984 and 1990 (Public Law 94-472, 22 U.S.C. 3101-3108, as amended by Public Law 98-573 and Public Law 101-533). This legislation empowers BEA to collect data on international investment and trade to support U.S. economic policy. The survey specifically targets new FDI, capturing details on transactions where foreign entities acquire or establish U.S. businesses or expand existing affiliates. BEA uses this information to quantify FDI inflows, evaluate their contributions to employment, innovation, and growth, and integrate the data into national accounts. For instance, the survey defines FDI broadly to include branches and unincorporated enterprises, ensuring comprehensive coverage. Without changes proposed in this renewal, the survey maintains its current scope, focusing on investments that meet the 10 percent ownership threshold.
Key Players and Reporting Process
BEA administers the BE-13 survey, with oversight from the Department of Commerce and OMB under the Paperwork Reduction Act, which requires agencies to minimize public reporting burdens while ensuring data utility. Respondents include U.S. businesses acquired or established by foreign investors, who must file within 45 days of the transaction or upon BEA notification. The survey comprises forms like BE-13A for acquisitions, BE-13B for new establishments, BE-13D for expansions, BE-13E for cost updates, and a claim for exemption. BEA estimates 3,417 annual respondents, with an average burden of 0.6 hours per response, totaling 2,032 hours annually at no direct cost to the public. Electronic filing via BEA's eFile system is encouraged, alongside options for mail or fax. Amanda Budny, Chief of BEA's Direct Transactions and Positions Branch, serves as the contact for inquiries, emphasizing the agency's commitment to transparency.
Legal and Policy Context
The BE-13 survey aligns with precedents set by the International Investment and Trade in Services Survey Act, which has been upheld in cases emphasizing the government's authority to collect economic data for public benefit, such as in challenges to similar BEA surveys where courts affirmed mandatory reporting (e.g., references in judicial reviews of the Act's implementation). Politically, FDI data informs debates on trade policy, national security reviews by the Committee on Foreign Investment in the United States (CFIUS), and economic strategies under varying administrations. For example, heightened scrutiny of foreign investments in sensitive sectors has increased the survey's relevance, though this renewal proposes no adjustments to address such trends. Perspectives vary: business groups may advocate for reduced burdens to encourage investment, while policymakers stress the need for robust data to monitor economic dependencies. Economists view the survey as vital for tracking FDI's role in U.S. GDP, with recent BEA reports showing FDI supporting millions of jobs.
Implications for the U.S. Economy
Short-term implications include maintaining data continuity, allowing BEA to update FDI statistics promptly and support timely economic indicators. Long-term, the survey's data influences policy decisions, such as incentives for foreign investment or restrictions in critical industries. By assessing FDI's economic significance, it highlights benefits like technology transfer and challenges like potential job displacement. Different viewpoints emerge: proponents argue it fosters global integration, citing BEA data on FDI's positive impacts, while critics, including some labor advocates, point to risks of outsourcing. The unchanged format ensures consistency but may miss opportunities to adapt to evolving investment patterns, such as in digital or green technologies.
In summary, the BE-13 survey renewal underscores BEA's ongoing effort to balance data collection needs with minimal burdens. Potential next steps include OMB review following the comment period, with possible adjustments based on feedback. Ongoing debates may focus on enhancing survey efficiency through technology or expanding coverage to capture emerging FDI forms, while challenges persist in ensuring compliance amid complex global transactions. These elements highlight the survey's enduring role in shaping informed economic policy.
