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US Development Financing Needs to Align with US Techno-Economic Interests

2024-08-12 04:59:07.631000

The U.S. Development Finance Corporation (DFC) rewards countries whose intellectual property and data policies harm American commercial interests and jobs. Over half of DFC funding goes to countries listed in the U.S. Trade Representative’s Special 301 report for substandard intellectual property policies, and 43 percent goes to countries cited in USTR’s National Trade Estimate for digital trade barriers. In an analysis by Robert D. Atkinson for ITIF, it is argued that Congress should create stronger criteria for aid agencies to assess how a recipient country’s trade policies impact U.S. techno-economic interests. The DFC should explicitly require that it stop providing financing to nations that enact systemically unfair trade and IP policies that harm U.S. interests. Congress should also create mandatory criteria to assess trade and technology barriers in potential partner countries. The DFC's reauthorization process before the end of fiscal year 2025 should be used to make the necessary changes to ensure the DFC is fully aligned with U.S. techno-economic interests. [fa54cb71]

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