For over 50 years, the U.S. has attracted foreign investment through a visa program known as the E-2 treaty investor category. This allows individuals making a substantial business investment in the U.S., whether through startups or existing enterprises, to come to the U.S.
The E-2 visa is an important driver of business growth, as tens of thousands of individuals who obtain these
Due to Congress’ objections and refusal to grant countries signing new treaties with the U.S. access to the program, expanding this status to a larger and more diverse pool of foreign investors has been halted. As our new president and Congress once again turn their attention to fixing a broken system, they should also embrace the E-2 visa category and leverage its ability to bring money and jobs to the U.S.
The Oldest Visas
The E-1 Treaty Trader and E-2 Treaty Investor
The E-2 visa program continued to expand as the U.S. moved to sign “bilateral investment treaties” with individual countries in the 1980s. Now there are 80 countries that qualify for E-2 status, based on either the treaties of friendship,
As a result, the E-2 visa has become popular—41,162 E-2 visas were issued in
Objections to further expand E-2 visas arose in the 1990s when the United States began negotiating free trade agreements containing immigration provisions. In 1993, the North American Free Trade Agreement (NAFTA) created a special immigration status for Canadian and Mexican professionals, and the Chile and Singapore Free Trade Agreements created a new status similar to the H-1B classification.
Less than a decade later, immigration provisions in the Chile and Singapore agreements drew bipartisan objections from Congress. Both the chairman and ranking member of the House Judiciary Committee wrote to the United States trade representative on July 10, 2003, to formally object to immigration provisions in free trade agreements.1 Later that month, the Senate unanimously passed a resolution stating that trade agreements should not contain immigration-related provisions.
In light of these concerns, the U.S. Trade Representative stopped placing immigration provisions in treaties, including BITs. Congress has not stepped in to fill the void, as only Israel has been accorded E-2 status by legislation. The assumption today is that the USTR will not include immigration provisions in any BIT.
Congressional concern over using FTAs to create new immigration classifications should not apply to BITs. BITs do not create a new immigration category; they only extend access
“There are 80 countries that qualify for E-2 status, based on either the treaties of friendship, commerce, or navigation."
Foreign investment is essential to our modern globally based economy, and there should not be artificial barriers to immigration provisions that directly support foreign investments. Congress should rescind its objection and allow the continued use of BITs to expand foreign investments in the United States.