FAQ: What is a Treaty Trader / Investor?

NOTE: The information provided herein is of a general nature and is not intended to 
apply to any particular set of facts. The information is not intended as legal advise 
and no attorney-client relationship is established with the Law Offices of Edward Lau. 
   
If you live in California and wish to consult with this office regarding an estate plan, 
please e-mail us for instructions. 

Ans:

An alien can obtain a Treaty Trader or Treaty Investor visa (E-1/E-2) only if a treaty of commerce and navigation or bilateral investment treaty providing for such entries exists between the United States and the country of nationality of the foreign company or investor. A list of countries which U.S. has such treaties with is attached. The second requirement is that the company or individual engaging in trade or investment in the U.S. must have the same nationality as the treaty country. Third, the principal investor or trader and the employees of the treaty company must have the same nationality as the treaty company. With regards to traders, a) the trading company must be engaged in "trade," b) the trade must be "substantial," c) the trade must be "principally between the U.S. and the treaty country, i.e., more than 50%, and d) the employee or principal must serve the company either in a managerial role or one involving "essential skills." With regards to investors, a) the investor must make an irrevocable commitment of funds which is an actual, active investment, b) investment must be substantial and must be investors own resources which are at risk, c) the investment should create job opportunities for U.S. workers, d) the alien must come to develop and direct the investment, act as qualified manager or specially trained and highly qualified employee.

Trade and investment (E-1 and E-2) status are in effect with the following countries:

Argentina
Australia
Austria
Belgium
Bosnia
Canada
China (Taiwan)
Colombia
Costa Rica
Croatia
Ethiopia
Finland
France
Germany
Honduras
Iran
Ireland
Italy
Japan
Korea
Liberia
Luxembourg
Macedonia
Mexico
Netherlands
Norway
Oman
Pakistan
Paraguay
Philippines
Slovenia
Spain
Suriname
Sweden
Switzerland
Thailand
Togo
Turkey
United Kingdom

Only E-1 treaty-trader status exists with the following countries"

Bolivia
Brunei
Denmark
Estponia
Greece

Israel
Latvia

Only E-2 treaty-investor status exists with the following countries:

Armenia
Bangladesch
Bulgaria
Cameroon
Congo
Czech Republic
Egypt
Grenada
Kazakhstan
Kyrgyzstan
Moldova
Morocco
Panama
Poland
Romania
Senegal
Slovakia
Sri Lanka
Tunisia
Zaire


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