Source · Select Committees · Foreign Affairs Committee
Recommendation 6
6
Paragraph: 30
The FCDO should demonstrate leadership on the foreign relations aspects of foreign investment decisions.
Recommendation
The FCDO should demonstrate leadership on the foreign relations aspects of foreign investment decisions. Supporting the ISU’s work in this area is a key responsibility of the FCDO. It will be vital that the Department has the right expertise both at overseas Posts and in London to fulfil this responsibility, including through ongoing monitoring of the global investment landscape. We recommend that the Government outlines how it intends to achieve this in its response to this report.
Paragraph Reference:
30
Government Response
Acknowledged
HM Government
Acknowledged
We agree with the Committee that the FCDO holds the key role in supporting the ISU’s work in this area. To deliver that, a dedicated FCDO team has been established to engage with and support the ISU’s work. A key role for this team is to raise awareness of investment security issues, and help build FCDO capability in this area, both in the UK and overseas. This was discussed at the FCDO Senior Leadership Conference at the end of June 2021, and we are identifying and securing the short and long-term capabilities required. The FCDO works closely with relevant counterparts in DIT, DCMS and elsewhere to ensure that expertise at overseas Posts is used to support investment security casework, as well as wider investment and economic security strategy. These teams horizon scan, monitoring the global investment landscape and trends within it, and routinely support the ISU by sharing commercial intelligence. FCDO also hosts the One-HMG overseas platform which supports other departments’ activities and cross-HMG objectives, including on Trade and Investment. For example, the HM Trade Commissioners and DIT staff in over 100 countries work in lockstep with Heads of Post and other Embassy/High Commission teams. In terms of changes to the global technology landscape, the FCDO will engage closely in any revision of the notifiable acquisition regulations that underpin the mandatory notification system. FCDO, BEIS and other departments and agencies have a shared commitment to ensuring the areas of the economy covered by mandatory notification obligations keep pace with technological advances, as well as the constantly changing national security risks that we face.