Immigration Proposals and Foreign Investment Zuzana Jerabek

BackgroundForeign direct investment in the US dropped

sharply in 2012

In 2013 foreign direct investment in the US could fall by 10% below the amount recorded in 2012

Foreigners invested $166 billion in US businesses and real estate, down 28% from the $230 billion invested in 2011

October 2013 - the Obama administration launches the “Select USA” initiative Offers a number of tools for foreign investors

looking to invest in the US

Rebound in foreign direct investment will likely not materialize until 2014

US Immigration Law

Issues:Visa system too complicatedIllegal workStudents leaving the countryDecrease in foreign investment

Two proposals:Bipartisan plan X President Obama’s plan

Border controlHiring illegal migrantsEarning citizenship by migrants living in the USPromoting legal migration policy

=> economic growth -> opportunities for foreign investors

Bipartisan Proposal

S. 744 - “Border Security, Economic Opportunity, and Immigration Modernization Act”

Bipartisan “Group of Eight”Senators Charles Schumer (D-NY), John McCain (R-

AZ), Richard Durbin (D-IL), Lindsey Graham (R-SC), Robert Mendez (D-NJ), Marco Rubio (R-FL), Michael Bennet (D-CO), Jeff Flake (R-AZ)

US GDP would grow by 3.3% ($700 billion) in 2023 and 5.4% ($1.4 trillion) in 2033

Introduced in Senate on April 16, 2013

Passed the Senate on June 27, 2013 by a vote of 68-32

Waiting for House approval

Foreign Investment

Current Legislation:E-2 Treaty Investor Visa

Intention to return after expirationEB-5 Investor Visa

High investment requirement

The proposal:X Visa

At least $100,000 in investment OR at least 3 jobs and $250,000 in annual revenue

Temporary nonimmigrant visaEB-6 Immigrant Visa

Leads to Lawful Permanent ResidenceSignificant ownership in US business and its

start-upAt least 5 jobs and $500,000 in venture capital or

investment OR 5 jobs and $750,000 in annual revenues

Proposal

Make the system less complicatedNew system replacing the current oneFewer types of visa

Move away from family-based immigration to a system tied to ECO necessity

Merit-based point systemAward points to immigrants with educational

credentials, work experience and other qualifications

Additional requirements for specific types of visa -> potentially boosting the score

Implementation of a monitoring mechanism

Sources

http://www.cnn.com/interactive/2013/04/politics/immigration-bill/

http://www.immigrationpolicy.org/special-reports/guide-s744-understanding-2013-senate-immigration-bill

http://www.uscis.gov/working-united-states/temporary-workers/temporary-nonimmigrant-workers

http://www.whitehouse.gov/issues/immigration/economy

http://legalservicesincorporated.com/what-is-the-impact-of-immigration-reform-proposals-on-businesses-employees/

http://www.workpermit.com/news.htm

https://www.fas.org/sgp/crs/misc/RS21857.pdf