The United States has expressed strong concern after Norway’s sovereign wealth fund announced its decision to divest from Caterpillar. Washington stated that the move could have political consequences.
According to officials, the US is “very troubled” by Norway wealth fund’s divestment from Caterpillar, citing its potential impact on bilateral relations. The Norwegian fund, the largest in the world, made its decision citing human rights concerns linked to Caterpillar’s equipment allegedly being used in conflict zones.
US ‘very troubled’ by Norway wealth fund’s divestment from Caterpillar, emphasizing that Caterpillar remains a key American manufacturer. The company plays a vital role in infrastructure, construction, and defense supply chains. Washington argued that such divestments unfairly target US firms while undermining trust between allies.
Norway’s Government Pension Fund Global, valued at over $1.6 trillion, is known for its strict ethical investment guidelines. It has previously excluded companies involved in environmental harm, corruption, or human rights abuses. Its decision regarding Caterpillar follows reports that the firm’s heavy machinery has been used in disputed territories.
The US government stressed that Caterpillar complies with American laws and international standards. Officials also suggested that the Norwegian move was politically motivated, urging Oslo to reconsider.
Meanwhile, human rights groups welcomed the divestment. They argued that Caterpillar has long been linked to controversial projects. Activists said the decision sends a strong message to corporations about accountability in global operations.
US ‘very troubled’ by Norway wealth fund’s divestment from Caterpillar highlights growing tensions between economic interests and ethical investment policies. The issue is expected to be discussed in upcoming diplomatic meetings.
For now, the divestment places Caterpillar at the center of a wider debate. It raises questions about the balance between business, politics, and human rights in international trade.
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