President Donald Trump has overturned an Obama-era anti-corruption rule that would have forced oil, gas and mining companies to disclose payments to foreign governments, becoming the first president in 16 years to take advantage of a law that allows him to rescind a predecessorâ€™s regulations.
Trump signed a congressional resolution to repeal a Securities and Exchange Commission disclosure rule that was called for in the 2010 Dodd-Frank Act. Itâ€™s likely just the start: Congress is considering a number of other measures, including ones to overturn Obama administration rules protecting streams from mountaintop mining and prevent people with serious mental-health problems from buying guns.
â€œThis is one of many,â€ Trump told reporters at a signing ceremony. â€œWe have many more left. And weâ€™re bringing back jobs big league.â€
These fast-track repeals are made possible by a little-used tool called the Congressional Review Act, which allows Congress to undo recent federal rules with a simple majority vote. Congress has used it successfully only once before: In 2001, then-President George W. Bush joined Congress in killing a Labor Department ergonomics rule adopted under the administration of President Bill Clinton. Overturning the SEC rule could benefit US oil giants Exxon Mobil Corp. and Chevron Corp.
Backers of the SEC regulation say forcing companies to disclose foreign payments would curb corruption in resource-rich countries, such as Nigeria. The oil industry says the rule would put US companies at a competitive disadvantage compared to state-run enterprises, such as Saudi Aramco, which are not subject to the disclosure rules.
â€œThe SECâ€™s rule forces US companies to disclose proprietary information to its competitors while foreign entities do not. This can give some large industry players an advantage on future business projects,â€ the American Petroleum Institute, an industry group, said in a statement.
Some of the industryâ€™s biggest players, including BP Plc and Royal Dutch Shell Plc., are already required to report taxes, bonuses and other payments to foreign governments, per anti-corruption rules adopted by the European Union and UK That includes some state-owned oil companies.
â€œRussian companies like Rosneft are already reporting much more than Exxon,â€ Daniel Kauffman, president of the Natural Resource Governance Institute, an international transparency watchdog, said before Congress voted on the repeal. While Republicans lawmakers have introduced at least a dozen resolutions for regulations they want to repeal, not all will make it to the presidentâ€™s desk. The Congressional Review Act has some constraints.