Louisiana House Bill HR203

Louisiana 2014 Regular Session

• Introduced: 5/30/14

Caption

Urges and requests the secretary of the Department of Economic Development to reevaluate a cooperative endeavor agreement with a Russian-based company

Impact

The bill is significant for state laws and economic development as it calls into question the use of state funds to support entities from countries under sanctions. If the cooperation with EuroChem is reassessed, it could lead to a reallocation of state resources and a reevaluation of existing economic development strategies that consider foreign investments. The potential loss of investment must be weighed against the backdrop of state funding for community development, workforce training programs, and the broader implications of international relations.

Summary

House Resolution 203 (HR203) urges the Louisiana Department of Economic Development to reevaluate its cooperative endeavor agreement with EuroChem, a Russian-based company that planned to establish an ammonia and urea production plant in Louisiana. The project was initially considered beneficial for the state's economy due to its job creation potential and investment, supported by a financial incentive package from the state. However, the geopolitical climate has notably shifted since the agreement, with escalating tensions between the United States and Russia, particularly following the events in Ukraine.

Sentiment

The sentiment surrounding HR203 appears to be cautious. Supporters of the resolution emphasize the need for due diligence regarding foreign investments, particularly those from nations facing U.S. sanctions. In contrast, critics may argue that reevaluating the agreement could deter future investments and signal a mistrust of international business relationships, thus complicating Louisiana's economic strategy in attracting foreign business ventures.

Contention

The main point of contention lies in the implications of maintaining an agreement with a Russian company amid international sanctions and political upheaval. Legislators are challenged to balance the potential economic benefits of the EuroChem project against the moral and legal imperative to adhere to federal sanctions and the changing dynamics of U.S.-Russia relations. The decision on whether to rescind the agreement could reflect broader legislative priorities concerning economic development and foreign policy.