STATEMENT
of the
Honorable Nydia M. Velázquez, Ranking Democratic
Member
House Committee on Small Business
"Lowering the Cost of Doing Business in the United
States:
How to Keep Our Companies Here"
November 20, 2003
Thank you, Mr. Chairman.
Today's global marketplace is crucial to the
success and strength of the U.S. economy.
And it is small businesses that play a large
role in international trade. However many are now struggling
due to immigration policies implemented as a result of the
terrorist attacks of September 11. While there is no doubt
that our nation's security is of the utmost importance -
it is also necessary to recognize that America's borders
are an entrance for people, goods and services, which help
drive our economy.
All 19 of the September 11 terrorists entered
our country on valid visas and this situation has rightfully
prompted the Department of State and the Department of Homeland
Security to implement policies aimed at toughening entry
into our country. Unfortunately, some of these changes have
had the unintended consequences of creating barriers for
domestic small companies.
The Committee held a hearing earlier this
year on this exact topic. We determined that a problem does
exist with the impact that these immigration policies are
having on our nation's small firms - and in my opinion -
real changes have yet to be made.
The Bush administration now requires the State
Department to conduct face-to-face interviews and more thorough
background checks in conjunction with the FBI. However,
once again this administration has failed to follow up its
tough talk with adequate funding. The result is a prolonged
time for obtaining a visa, going from what used to be a
few days - to what is now a few weeks - or even a few months.
While current trade and tax policies already
place many small businesses at a disadvantage in a very
competitive international environment, these new immigration
policies, although necessary, are creating an additional
hardship for them.
Sadly, many small businesses, including those
in the manufacturing, tourism and trade sectors - are bearing
the brunt of these new procedures. A significant number
of their clients face extended visa delays - and in some
instances - outright rejection. These denials and lengthy
setbacks are pushing clients to seek products from U.S.
competitors.
Small firms are finding that longstanding
business relationships with foreign clients are being damaged
and legitimate travelers are unable to obtain visas. Opportunities
for new business ties are being blocked and personal transfers
within some companies are being delayed.
The U.S. tourism industry, which is one of
the leading retail industries in this country, is also being
negatively impacted. In 2001, the U.S. travel industry received
more than $555 billion dollars, including international
passenger fares from domestic and international travelers.
These expenditures generated nearly 7.9 million jobs for
Americans, with nearly $174 billion in payroll income. As
one of America's largest employers - with one in every seven
workers employed directly or indirectly in travel and tourism
- this vital industry has experienced significant setbacks
due to the stricter immigration laws.
Too many of our nation's most prosperous industries
- including travel, tourism, and manufacturing - have been
put at an unfair disadvantage. The need for increased security
is certainly warranted. But we also need a healthy balance
between protecting our nation and ensuring that small businesses
can successfully compete in today's expanding global marketplace.
These immigration policies, and the impact
they are having on small businesses, must be revisited in
order to ensure that we are keeping out those who intend
to harm us, while admitting those individuals who come here
to make positive contributions to our economy.
Thank you.
