Visa Policy has Cost U.S. $101 Billion in Exports to the Arab Market Since 9/11

Arab - American Business, Feb/Mar 2007

WASHINGTON, D.C. - American exporters have lost out on $101 billion in business as a result of tougher visa requirements in the aftermath of 9/11 that have made it more difficult for Arab executives, students and tourists to visit the U.S.

That is the conclusion of a study by the Institute for Research: Middle Eastern Policy (IRMEP), which has gathered and analyzed the most authoritative data about visitor flows from twenty-two Arab League nations before and after 9/11.

Total Arab market demand has more than doubled since 2001, but visa barriers turning away executives, industrial buyers, trainees and others seeking legitimate entry into the U.S. have caused cumulative estimated export losses of $101 billion, according to IRMEP, a Washington, D.C.-based think tank established in 2002 to research the U.S. Middle East policy formulation process.

Those losses have translated into a loss of 205,000 manufacturing jobs for the American economy. Total U.S. manufacturing jobs sustained by Arab market demand reached 215,000 in the year 2005, but could have been 420,000 with more effective and non-discriminatory U.S. visa policies, according to the study.

Even today, tougher visa policies continue to serve as a drag on the U.S. economy. Arab business and tourist travelers remained at half their 2001 levels, creating five year travel related service losses of $1.775 billion and 4,126 potential service jobs.

In the education sector, the effect has been just as grave. In 2005 Arab student enrollment in the U.S. higher education system reached only 66% of the 2001 level. The U.S. higher education system lost $1.989 billion in revenue and 9,000 education and support service jobs, according to IRMER

Total U.S. direct and indirect manufacturing jobs supported by merchandise exports to United Arab Emirates reached 63,619 in 2005, while Saudi Arabia's imports sustained 60,269 manufacturing jobs.