In January 2004, the U.S.-Chile Free Trade Agreement (FTA) became law, marking the beginning of a dynamic partnership between the two nations. Over the past two decades, this agreement has not only boosted trade between the U.S. and Chile but has also opened the door to significant employment opportunities for Chileans in the U.S.

Let’s explore how the U.S.-Chile FTA has shaped trade, agriculture, and employment across borders, with a particular focus on the H-1B1 visa and its potential impact on labor shortages in the agricultural sector.

The Rise of U.S.-Chile Trade

Since the FTA came into effect, the economic relationship between the U.S. and Chile has flourished. U.S. exports to Chile have increased substantially, as has U.S. direct investment in Chile. Meanwhile, U.S. imports from Chile have surged by four times. This trade growth has been particularly impactful in the agricultural sector, which accounts for more than 25% of Chile’s total exports.

Thanks to the FTA, the U.S. has become Chile’s top market for agricultural exports, with the value of Chilean exports to the U.S. reaching an impressive $6.5 billion in 2023. Chilean table grapes make up a significant portion of this, representing nearly one-sixth of total exports to the U.S. Other fruits such as cherries, stone fruits, citrus, berries, and apples also contribute billions to the total export volume.

The H-1B1 Visa: Bridging Employment Gaps

One of the lesser-known but highly valuable aspects of the U.S.-Chile FTA is the creation of the H-1B1 visa. This visa category is exclusive to citizens of Chile and Singapore and is designed for university-educated professionals who have an offer of employment in the U.S. The H-1B1 visa is particularly advantageous for industries facing labor shortages, such as agriculture.

For U.S. companies involved in the transshipment, importation, and sale of agricultural products from Chile, the H-1B1 visa offers a fast, easy, and cost-effective way to address the shortage of qualified agricultural managers. Unlike the traditional H-1B visa, the H-1B1 does not require the pre-filing of a petition with U.S. Citizenship and Immigration Services (USCIS). Instead, applicants apply directly at a U.S. Embassy, making the process simpler and quicker.

Key Features of the H-1B1 Visa

  • Specialty Occupations: The H-1B1 visa is designed for jobs that require at least a bachelor’s degree in a specific field of study. For Chileans, this includes roles in agriculture, such as Agricultural Managers, and even Physical Therapists. Uniquely, Chilean applicants can qualify for the H-1B1 visa with a three-year post-secondary certificate and three years of relevant work experience.
  • Application Process: The process for obtaining an H-1B1 visa is relatively streamlined. U.S. employers must first secure a Labor Condition Application (LCA) from the U.S. Department of Labor, which attests that the H-1B1 worker will be paid the prevailing wage for the role. Once the LCA is approved, the applicant can apply for the H-1B1 visa at a U.S. Embassy, usually in Santiago, although applications can be made worldwide.
  • Visa Validity: The H-1B1 visa is typically valid for 18 months, and visa holders can enter the U.S. multiple times within this period. Each entry allows for a stay of up to one year, and extensions can be obtained through USCIS or at a U.S. Embassy. Importantly, there is no limit to the number of times the visa can be renewed, provided the applicant does not intend to immigrate permanently.

The H-1B1 Visa’s Role in U.S. Agriculture

For U.S. employers in the agricultural sector, particularly those involved in the importation and distribution of Chilean produce, the H-1B1 visa is an invaluable tool. With the rising demand for fresh produce like grapes, cherries, and citrus fruits, having qualified agricultural managers on hand is crucial to maintaining supply chains and meeting customer demand.

The H-1B1 visa offers a solution to labor shortages, allowing U.S. companies to bring in skilled professionals from Chile to fill key managerial roles. With the agricultural sector’s increasing reliance on international trade, understanding how to leverage the H-1B1 visa can be a game-changer for businesses looking to stay competitive.

Final Thoughts

The U.S.-Chile Free Trade Agreement has not only strengthened the trade ties between these two nations but also created a pathway for Chilean professionals to bring their expertise to the U.S. Through the H-1B1 visa, U.S. employers can tap into a talented pool of university-educated workers to meet labor demands in sectors like agriculture.

If your organization is involved in the agricultural import and distribution sector, the H-1B1 visa could be a vital resource for overcoming labor shortages. For more information on how your business can benefit from hiring H-1B1 workers, feel free to contact us at MIH@shglawpa.com.

The post The U.S.-Chile Free Trade Agreement and the H-1B1 VISA: A Key Driver of Bilateral Trade and Employment Opportunities appeared first on Solow, Hartnett and Galvan Immigration Law.