Washington: The United States will face pressure to open its borders to more foreign workers in the service industry in talks slated to start later this year, a difficult issue for US trade negotiators over the past decade, business officials have said.
Peter Allgeier, president of Coalition of Service Industries, whose members include Citigroup, FedEx and Wal-Mart, agreed it would be a major demand on the US in the talks, which are expected to start in coming months. Professionals from around the world would like to work in the US temporarily, Allgeier said.
The proposed talks covering service sectors such as telecommunications, finance and express delivery are expected to include the US, Japan, the European Union and a mix of 18 other developed and developing countries.
The aim is to establish the rules for international services trade in the 21st century, including in new areas such as the Internet where countries are increasingly imposing barriers on cross-border data flows, Allgeier said.
Although big emerging countries such as China, India and Brazil are not currently part of the proposed talks, participants hope they will eventually join. The US is already is the world's largest services exporters and could benefit significantly from the pact.
Visas for skilled workers
Calls for the US to provide more visas for skilled workers has been a sensitive issue in the past.
Many US lawmakers objected in 2003 when the administration of former president George W. Bush agreed in free trade pacts with Singapore and Chile to provide additional H-1B1 visas for their business professionals to work in the US.
That led to a letter by then-US Trade Representative Robert Zoellick promising the House of Representatives Judiciary Committee not to include such provisions in future trade pacts.
The issue also hung over the unsuccessful Doha round of world trade talks. India became convinced the US would not provide more visas and resisted demands to open its manufacturing and agriculture markets, Allgeier said.
However, the Obama administrations and senior lawmakers are promising action this year on a comprehensive immigration reform bill, which could include more visas for high-skilled workers. That potentially could free the United States' hands to deal with visa demands in talks on the services pact.
The US also will likely face pressure in the negotiations to lower barriers in sectors such as shipping, telecommunications and air travel, Allgeier said.