Washington: US President Donald Trump has signed an executive order suspending enforcement of the Foreign Corrupt Practices Act (FCPA), a law that prohibits American companies from bribing foreign officials to secure business. The White House statement justified the move by claiming that FCPA enforcement had been “abused” and was negatively affecting the economic competitiveness of American firms abroad. The order directs Attorney General Pam Bondi to halt enforcement actions under the Act and review all current and past cases. Trump’s decision has reignited debate on corporate ethics, with critics arguing that weakening the FCPA could encourage corruption, while supporters claim it will help US businesses compete on the global stage.
Following this decision, the stock market reacted strongly, particularly in India, where the Adani Group witnessed substantial gains across all its listed companies. Adani Enterprises Ltd. surged by 4.28%, followed by Adani Power Ltd., which saw a 4.17% rise, and Adani Green Energy Ltd., which climbed by 3.34%. Other Adani firms, including Adani Energy Solutions Ltd., Adani Total Gas Ltd., and Adani Ports and Special Economic Zone Ltd., also experienced notable increases. Analysts suggest that investors view the relaxed FCPA enforcement as a positive development for international businesses, particularly those engaged in large-scale infrastructure projects.
Trump has long been a critic of the FCPA, having previously considered scrapping the law during his first term. His administration argues that strict anti-bribery regulations create an unfair disadvantage for American companies competing in regions where such practices are commonplace. The executive order asserts that national security and foreign policy interests should take precedence, particularly in securing access to critical resources and infrastructure. However, opposition voices warn that the decision could erode global anti-corruption efforts and damage the credibility of US businesses. As Trump’s move sparks global discussion, the long-term impact on international trade and corporate governance remains uncertain.
