New Border Security Law Sparks Diplomatic Talks and Offshoring Concerns

Passport StampComputerworld reports that the United States government is reviewing whether the recently-enacted border security law, funded through increased H-1B and L-1 visa application fees for certain foreign-owned companies, runs afoul of World Trade Organization rules, as the law’s opponents and India’s Commerce Secretary contend. However, the issue was only briefly addressed in a recent U.S. Department of State press briefing during which a spokesperson confirmed that discussions about the law were being held between U.S. and Indian officials. Some suggest that the law could increase Indian companies’ U.S. operating costs by $250 million per year.

In a separate article, Computerworld reports that the law has caused rare consensus among H-1B visa advocates and opponents. Individuals on both sides contend that the bill will not create IT jobs for Americans. They suggest that targeted companies—foreign entities operating in the U.S. whose workforce is 50% or more foreign—can easily shift operations to Canada or Latin America. Finally, there are concerns that the fees’ generated revenue is misdirected, and that the funds should be used to spur innovation in the U.S. technology industry rather than to increase law enforcement operations at the United States’ southwestern border.

Canada: Express Business Visas for Indian Citizens

In an effort to boost trade with India, Canada has announced a new visa scheme for business visitors from India, according to expressindia.com. The new scheme will offer multiple-entry visas to Indian citizens, and business visa applications will be cleared within 24 hours. Canada also intends to double the number of Indian students to whom visas will be awarded. The move comes as Canada and India finalize nuclear cooperation and investment protection agreements.

Canada-Peru Free Trade Agreement Affects Business Visitor Visa Procedures

Canadian trade officials announced that the Canada-Peru Free Trade Agreement (CPFTA) became effective on August 1. In addition to addressing issues of trade, investment, and the environment, the CPFTA also details how immigration will be fostered between Canada and Peru.

Under the CFPTA, each country will issue temporary business visitor visas to qualified applicants. However, work permits can be denied when that person’s entry would adversely affect: 

  • settlement of an ongoing labor dispute at the intended place of employment; or
  • employment of a person involved in a dispute.

Additionally, the countries will:

  • limit visa application fees for temporary entry of business persons; and
  • issue decisions concerning business visa applications within 45 days of submission.

The countries have also agreed to exchange information concerning business visa requirements so that each could familiarize itself with the other’s policies and procedures. Furthermore, each country has agreed to collect, maintain and—upon request—distribute data pertaining to business visa programs as it relates to citizens of the partner nation.

 

 

 

Clinton Comments on Role of H-1B Visa Program in U.S./India Relations

Secretary of State Hillary Clinton, speaking before the U.S.-India Business Council, outlined her plans for a “dramatic expansion” in U.S./India relations and touched upon concerns voiced by the Indian IT community and the Indian government that proposed restrictions on the H-1B visa program are a form of protectionism. As reported at Computerworld.com, Clinton remarked that both countries should "work through any issues in our relationships and differences in our perspectives by focusing on shared objectives and concrete results." Meera Shankar, India's ambassador to the United States, stated that India's IT talent has helped U.S. firms become more competitive globally, while also stimulating the U.S. economy by creating jobs and increasing profits.

Leader of Indian Software and IT Industry Association Visits Washington, D.C. to Discuss Immigration Policy

Som Mittal, president of Nasscom, the industry association representing Indian software and IT services firms, recently met in Washington, D.C. with various U.S. government officials and representatives of trade organizations. In an interview with InformationWeek, Mittal stated that he was in D.C. "to provide perspective on the Durbin-Grassley bill," bipartisan legislation aimed at preventing abuse and fraud in the H-1B and L-1 visa programs. Based on his meetings, Mittal said he thinks that the Obama administration and Congress are likely to consider H-1B and L-1 provisions as part of broader immigration reforms, perhaps later this year.

Mittal also noted that, from his perspective, the H-1B and L-1 visa programs should be considered matters of trade policy rather than immigration, stating: “Our data shows that [H-1B visa holders] stay in the U.S. less than two years.” He further commented:

Other countries, including the U.K., France, Germany, Japan, and India provide work permits to bring in foreign workers temporarily. It's not about immigration, it's about trade.