The executive order signed by President Donald Trump regarding the suspension of prosecutions under the Foreign Corrupt Practices Act (FCPA) marks a significant shift in U.S. policy toward global business practices. The FCPA, which was enacted in 1977, has been a cornerstone in the U.S. effort to combat international corruption by prohibiting American companies from bribing foreign officials to secure business deals.
In the order, Trump directed U.S. Attorney General Pam Bondi to halt prosecutions under the FCPA, pending revised enforcement guidelines. This decision is based on the assertion that U.S. companies are at a competitive disadvantage because they are prohibited from engaging in practices that other global companies might use to gain an edge, leading to what the White House describes as an “uneven playing field.” The goal of the executive order is to boost American competitiveness abroad by easing these restrictions.
However, the move has raised concerns among anti-corruption advocates. Transparency International, which has long praised the FCPA for its role in the fight against global corruption, warned that this could undermine the U.S.’s leadership in combating corruption. Gary Kalman, the executive director of Transparency International US, argued that the order could potentially eliminate one of the most important tools in the U.S.’s anti-corruption efforts, calling it a dangerous step backward.
This development is part of a broader trend under the Trump administration, which has seen several executive orders aimed at reshaping U.S. foreign and domestic policies, including the dismantling of agencies like the U.S. Agency for International Development (USAID).
The long-term impact of this executive order remains to be seen, especially in terms of its implications for U.S. businesses, international relations, and global efforts to curb corruption.
