A top diplomat in the Obama Administration has spoken out in support of US-based businesses domiciled in overseas jurisdictions - an endorsement that "tremendously assists Bermuda's interests" in the current economic climate according to Finance Minister Paul Cox.

Robert Hormats, the US Government's State Department Under Secretary of State for Economic, Energy and Agricultural Affairs, made the declaration last week at the 'Cross-Border Investment in a Post-Recession World' conference, which was hosted by one of Bermuda's overseas strategic partners, the United States Council for International Business (USCIB).

USCIB, which represents some of the US's leading global companies, assembled a diverse array of speakers from business, government, international organisations, labour and Non Government Organisations to address the key challenges for foreign investment in the US and other jurisdictions. Also in attendance at the conference was Angel Gurría, secretary general of the Organisation for Economic Cooperation and Development (OECD).

Mr. Hormats, who was the keynote speaker at the event, said that the US must reject protectionism and economic nationalism, and champion foreign investment as a key driver of US prosperity.

"We need to maintain a positive environment for international investment," he said. "The US along with other Governments needs to resist protectionism and economic nationalism.

"We also need to recognise that foreign direct investment contributes enormously to our economic success. And we need to pursue policies that will increase the confidence of foreign investors. This is the key to extending our economic recovery and global economic growth."

Yesterday Minister Cox said: "When I delivered the National Budget Statement on February 26, I announced to the Members of Parliament and to the Country that the Ministry of Finance was strengthening our alliances with overseas entities that would put Bermuda's best interests at the fore.

"The USCIB is one of the most respected organisations within the global international business arena.

"It promotes open markets, competitiveness and innovation and corporate responsibility, supported by international engagement and prudent regulation.

"At last week's high level USCIB conference, industry insiders heard first-hand about the importance of supporting those US-based companies that are domiciled overseas. At the end of December 2009, there were a total of 15,392 overseas companies and partnerships registered in Bermuda.

"So, Bermuda has a strong US based international business presence, and we were encouraged with Under Secretary Hormats' tone and tenor.

"It has been no secret that the contribution to the American economy of US multinational companies has come under some scrutiny.

"However US multinational companies perform large shares of America's productivity-enhancing activities, such as capital investment, research and development and trade.

"And in order to be globally competitive, it requires US multinational companies to establish operations overseas and also expand and integrate these foreign activities with their US parent companies.

"Therefore, the scale and scope of a US parent company's activities through its multinational expansion is becoming increasingly dependent on its successful presence and competitiveness globally.

"And it's the activities of these US-based international business companies that ultimately strengthen the US economy through their global involvement and engagement."