Lost in transition: the costs of tighter borders.

• Author: Sanchez, Julian
• Position: Citings

FEW CONTEST THE need to secure American borders against terrorists. But if immigration policy can't offer such security without unduly burdening commerce and education, the cost may come not merely in the form of a delay here or there but as a broader shift of brains and business overseas.

A study by the Santangelo Group, commissioned by a coalition of eight trade associations, estimates that U.S. companies have lost more than $30 billion as a result of the new rules on entering the country. The Transit Without Visa and International-to-International programs, which had allowed some travelers to bypass visa requirements, were suspended in August 2003.

Background checks and interviews are now required for younger male visa applicants from 26 countries with Muslim majorities and for travelers from "technology alert" countries, such as China, who are visiting high-tech businesses. Just securing all interview call take more than a month. Of the companies surveyed in the trade association study, 73 percent said they had experienced problems processing visas, and 60 percent reported a "material impact" in some cases requiring relocation of personnel or business functions offshore.

There are also signs of a...