Chamber letter to Chairman Chambliss and the members of the Subcommittee on Immigration, Border Security and Citizenship on L-1 Visas and the 21st Century Global Economy

The Honorable Saxby Chambliss
Chairman, Subcommittee on Immigration, Border Security and Citizenship
Senate Committee on the Judiciary
224 Dirksen Senate Office Building
Washington, DC 20510

Dear Chairman Chambliss:

On behalf of the United States Chamber of Commerce, I would like to express our views regarding the topic of the hearing to be held today, "The L1 Visa and American Interests in the 21st Century Global Economy." The Chamber and its members strongly support the L-1 visa category for nonimmigrant, intracompany transferees, which allow multinational companies to manage their global workforce, transferring knowledge, skills, management and leadership to support their global operations.

The L-1 category was created by the Congress in 1970 to enable U.S. companies with international operations, and foreign-based companies with direct investment in the United States, to temporarily transfer to the United States senior executives, managers and employees with particular specialized knowledge of that company's products, services and operations in an international context, from overseas subsidiaries and affiliates.

Over the years, the L-1 category has been successfully used by most of the top corporations with a U.S. presence to effectively oversee their international operations, develop senior managers and executives for positions with global responsibility and to effectively transfer knowledge and expertise between their U.S. and foreign facilities. Many top tier executives and managers of the largest international corporations have spent time in the U.S. on L-1 status.

The L-1 visa is not intended, nor should it be used, to replace a U.S.-based workforce. The requirements of the visa are focused and quite narrow. To qualify for an L-1 visa, the individual must have been employed overseas by the company, or an affiliate or subsidiary, for one year in a managerial or executive position, or the individual must have "specialized knowledge of the company product and its application in international markets or an advanced level of knowledge of the processes and procedures of the company." By definition, only a narrow class of employees can qualify for these visas. Further, the individual must be coming to a similar position in the United States – as a manager, executive or to impart his or her "specialized knowledge."
Limitations on this visa category have the potential to severely limit the ability of U.S. multinational companies to develop a global presence and manage global businesses. Changes to the L-1 category would also hurt the United States' ability to attract foreign direct investment. Foreign investors will not come to the United States if they cannot bring their personnel to manage their investment. Finally, limitations on the category will place the United States at a competitive disadvantage to other nations as a favorable location for international business operations.

The Chamber is also concerned that the discussion of changes to the L-1 category appears driven, in large part, by questions over transition of jobs in an international economy, specifically technology and other white-collar jobs. Issues surrounding outsourcing should not unfairly cloud a valuable visa program that supports U.S. and international businesses.

Outsourcing is a complicated business decision that involves many factors. In a slow economy the pressure on businesses to reduce costs, both for their own operations and by their customers, requires difficult choices. When companies are competing in an international market, the inability to effectively manage their workforce can mean the difference between gaining the edge and going out of business. The result can mean even greater job losses in the long run.

The use of certain categories of visas, such as the H-1B or the L-1, by multinational companies has been an effective means of maintaining that competitive edge. The visas allow companies to manage their global workforce in the most efficient ways, transferring knowledge, skills, management and leadership to the locations that can most benefit. These visas have helped provide the "grease" of international trade and investment for more than thirty years.

We urge you to proceed carefully in this area and not undermine a program that has benefited the U.S. economy and U.S. business.

Sincerely,

R. Bruce Josten
Executive Vice President, Government Affairs
U.S. Chamber of Commerce

cc: Members of the Subcommittee on Immigration, Border Security and Citizenship