SINGAPORE: On Jun 22, the US temporarily suspended entry of foreigners under specific categories of temporary work visas, disrupting the lives of non-immigrant workers to the US – particularly that of Indian workers.
Despite seemingly warm ties between US President Donald Trump and Indian Prime Minister Narendra Modi and an evolving geopolitical landscape thats pushing India closer to the US, the visa suspension shows that for both countries, domestic interests always prevail.
Advertisement
Advertisement
READ: Commentary: Trumps work visa suspension may wind up as self-sabotage
IMPACT ON INDIA
The suspensions apply for H-1B or H-2B visas, J visas and L visas. H-1B visas enable skilled workers with graduate degrees to move to speciality occupations in the US. H-2B visas are for temporary workers in short-term non-agricultural services.
J visas enable researchers and experts under academic and cultural exchange programmes to travel to the US. L visas are for intra-corporate transferees, allowing international staff to move to the US within a multinational firm.
Advertisement
Advertisement
Mexico, China, and India are the largest recipients of American temporary work visas. During the fiscal year 2019, Mexico received around 1.5 million visas, followed by Mainland China with 1.2 million, and India with just under 1 million.
READ: Commentary: China and India – the regions twin growth engines – are stuttering
Non-immigrant visas to China have reduced significantly since President Trump assumed office in 2017 – but the current suspension doesnt affect China much. It affects India most due to it being the largest recipient of H-1B visas.
India received more than 130,000 H-1B visas in 2019, accounting for 70 per cent of such visas issued during the year. It was also issued more than 40,000 L category visas in 2019, compared with around 10,000 for China and Mexico each.
H-1B VISAS IN THE CROSSHAIRS
President Trump said the intention of the visa freeze is to protect American workers, since the COVID-19 pandemic has severely impacted the local economy and jobs.
Vehicles travel past people rallying for the U.S. and calling for the end of the lockdown in San Diego, California, amid the coronavirus disease (COVID-19) outbreak in the U.S., April 26, 2020, in this still image from video obtained via social media. Kelly Neill via REUTERS
While this is the official explanation, the H-1B visa programme has long been in the Trump administrations crosshairs.
President Trump has called it a cheap labour programme because it allows American companies to hire highly qualified foreigners in place of Americans, many of whom are young Indian IT workers willing to work the same job for less pay.
The US government has been slowly tightening visa regulations in line with the “Buy American and Hire American” executive order of April 2017, which aims to boost wages and employment for American workers by doubling down on immigration laws.
Since then, the H-1B visa programme has demanded higher qualifications in applicants and also blocked work permits for spouses of visa holders.
READ: Families separated by new Trump H-1B visa order frantic for answers
These moves seem to be taking effect. According to the National Foundation for American Policy, the rate of H-1B visa application denials in the first fiscal quarter of 2019 was 32 per cent, up from 24 per cent in 2018.
Before Trumps presidency in 2016, only 10 per cent of H-1B applications were denied.
The H-1B visa suspension is consistent with the Trump administrations unfavourable views towards foreign workers in the US, particularly those coming in through H-1B and eventually working long enough to obtain US citizenship.
As elections draw near, President Trump is also making an effort to fire up his supporters with a nationalist, anti-foreigner agenda. Indian skilled professionals shut out by the visa freeze are merely collateral damage.
READ: Commentary: Why are K-pop fans trolling Donald Trump?
US BUSINESSES SPEAK OUT
The suspension eliminates opportunities for Indian professionals, particularly IT specialists, to work in the US, at least for the rest of the year.
While existing H-1B and L visa holders are unaffected by the visa freeze, they face the prospect of their visas not being extended. This is grim news for Indian professionals at a time when tech industries are contracting and employment prospects diminishing across the world.
The H-1B visa program is used widely by the tech sector and dominated by computer professionals from India AFP/ SAJJAD HUSSAIN
The order is also a major blow for prominent Indian IT firms such as the Tata Consultancy Services (TCS), Infosys, Wipro and Cognizant. These firms are major users of H-1B visas for shifting professionals from India to their US offices.
The move also impacts the US tech industry. For decades, the H-1B and L visas have been instrumental in supplying high-quality Indian talent to frontline tech companies and start-ups in the Silicon Valley.
Angry responses from all across the US tech industry were hardly surprising. Tesla, Microsoft, Amazon and several other firms argued that blocking skilled foreign professionals from entering the US would affect the competitiveness of the American tech sector at a critical time for post-pandemic recovery.
The long-term impact of the suspension might be cushioned if it doesnt last beyond 2020. But if it does, then Indian IT businesses might be forced to consider relocating parts of their American operations elsewhere, such as Canada or Mexico, for servicing the North American market.
Businesses like Shopify are already highlighting advantages of Canadas liberal immigration policy for attracting foreign talent.
READ: Commentary: Soon you may be competing with talent globally. The Fortitude Budget is a wake-up call
READ: Commentary: The future is tech but where is Singapores engineering and IT talent?
IMMIGRATION A CONTENTIOUS ISSUE
For several years, Delhi has demanded more liberal movement of professionals between India and the US. The Trump administration, howevRead More – Source
[contf]
[contfnew]
channel news asia
[contfnewc]
[contfnewc]
