Staff Reports
In a bold move that’s bound to shake things up, President Donald Trump has stepped in to provide some much-needed clarity on the Foreign Corrupt Practices Act (FCPA). While this law is celebrated by some as a knight in shining armor of anti-bribery, Trump asserts that it often plays the role of the villain, restricting American companies while giving foreign competitors a license to print money through corruption.
The law, introduced in 1977, aims at preventing U.S. businesses from engaging in bribery to secure contracts overseas. It sounds great in theory—who wouldn’t want the moral high ground? However, critics contend that it creates a lopsided playing field. The president believes it’s time to let U.S. businesses breathe a little easier, and he isn’t shy about saying it. His recent executive order effectively freezes the enforcement of this law, putting a pause on ongoing investigations for 180 days. It’s a strategic move, as he claims that the current enforcement is “excessive” and leaving U.S. firms with a disproportionate disadvantage against their less scrupulous foreign rivals.
President Trump to halt enforcement of law banning bribery of foreign officials and said it will “mean a lot more business for America”. Via @FT
Going forward, apparently, American companies will be allowed to bribe foreign officials especially benefiting mining transactions.… pic.twitter.com/vkf0r7XDie
— Zemedeneh Negatu (@Zemedeneh) February 11, 2025
Mark Pieth, a law professor from Switzerland, paints a dire picture of the situation with his Wild West analogy, suggesting that if Americans are free to engage in bribery without fear, everyone might as well jump into the mud pit. Yet, the reality of the global marketplace is that if U.S. companies cannot compete effectively, they risk losing out to foreign players who are perfectly willing to play dirty. Companies like Walmart and RTX have already felt the sting of the FCPA’s rigid enforcement; it appears the administration is keen on minimizing the collateral damage to the American workforce.
Trump is making it clear: while maintaining an air of virtue might work for some, it’s not exactly a winning strategy when the competition is stacked against you. He’s determined to create an environment where American businesses can thrive without being shackled by laws that many feel are outdated. Critics of his approach worry about America’s global image—an important factor when foreign markets are involved—but at what point does photo ops and public perception take a backseat to the economic good of the country?
What’s potentially explosive about this executive order is its ripple effect on international relations and law enforcement. If the U.S. steps back, other countries may opt to loosen their own anti-bribery efforts, as suggested by experts. The more lax environment could inadvertently clean the path for some nasty dealings internationally, but Trump’s supporters argue that it’s about time U.S. companies stop playing by a set of rules that others aren’t even considering. If it takes a bit of messy business to revitalize the American economy, then so be it. After all, it’s not as though a few corrupt practices haven’t been prolific already on the world stage.
While changing the enforcement landscape isn’t the same as abolishing the law outright, it provides straining corporations a breath of fresh air. As Trump prepares to unveil new enforcement guidelines, it remains to be seen whether this will lead to more thriving U.S. businesses abroad or a free-for-all that could embarrass American prestige. One certainty is that the long-gone bout of morality that seemed to rule international business could soon be reshaped by a reality check in the form of dollars and cents.
