Visa free travel facilitated by waiver agreements brings significant economic, social, and cultural benefits and boosts travel, tourism, property sectors, contributes foreign direct investments giving towards the economy of the nation. Lifting of visa restrictions makes it easier for more people to visit, to do business, sightsee or reunite with family and friends. In the EU, visa-free travel continues to bring significant economic, social and cultural benefits to EU Member States and third countries, and is an important tool to promote tourism and business. According to OECD estimates, the travel and tourism sector alone accounted for around 7% of global exports in 2019 and contributed around 4.4% of GDP of OECD countries.
Countries running Citizenship by Investment (CBI) programs are vulnerable to visa waiver suspension, mainly due poor security checks on applicants. Visa waiver suspensions threaten diplomatic and bilateral ties with two countries.
United Kingdom
On 19 Jul 2023, United Kingdom has revoked the visa waiver of Commonwealth of Dominica and Vanuatu. The Home Secretary stated in House of Lords “Careful consideration of Dominica’s and Vanuatu’s operation of a citizenship by investment scheme has shown clear and evident abuse of the scheme, including the granting of citizenship to individuals known to pose a risk to the UK.” The decision by Home office to impose these visa requirements has been taken solely for migration and border security reasons and is not a sign of poor relations with these countries.
Canada
On June 6, 2023, Canada excluded Grenada and Dominica from eTA program. Other three countries St.Kitts, St.Lucia and Antigua were added to the electronic travel authorization (eTA) program. Travellers from these countries who have either held a Canadian visa in the last 10 years or who currently hold a valid United States non-immigrant visa can now apply for an eTA instead of a visa when travelling to Canada by air.
On Nov 22, 2014 – Canada has implemented the visa requirement on St. Kitts and Nevis. Canada said due to concerns about the “issuance of passports and identity management practices within its Citizenship by Investment program”. From December 10, 2014 to March 31, 2016, the Government of St. Kitts and Nevis recalled all passports without the written place of birth field for re-issuance of a new passport with the written place of birth field.
On June 27, 2017, citizens from Antigua and Barbuda will need a visa to travel to Canada. At that time, any existing electronic travel authorization (eTA) issued to a citizen of Antigua and Barbuda will no longer be valid, and these travellers will not be able to use their eTA to travel to Canada. After carefully monitoring the integrity of Antigua and Barbuda’s travel documents, the Government of Canada has determined that Antigua and Barbuda no longer meets Canada’s criteria for a visa exemption
In December 2002, Canada imposed new visa requirements on citizens from eight countries, including Grenada, partly harmonizing its policies with the stricter protocols of the United States
United States
The US imposes visas on all CBI nations excluding Malta whose nationals require ESTA for travel.
In Dec 2022, The US has tightened the loophole of apply for E-2 visa acquired through citizenship by investments (eg. Grenada, Turkey, Montenegro).
- All E-1 and E-2 filings received on or after Dec. 23, 2022, USCIS may request additional documentation related to how the applicant obtained treaty country nationality to ensure compliance with the amended language.
- An alien who acquired the relevant nationality through a financial investment and who has not previously been granted status under this subparagraph, the foreign state of which the alien is a national and in which the alien has been domiciled for a continuous period of not less than 3 years at any point before applying for a nonimmigrant visa.
European Union
The Council adopted on 3 March 2022 the decision to partially suspend the visa waiver agreement with Vanuatu. Effective until Aug, 3, 2023 full suspension applies for all nationals of Vanuatu was triggered. The Commission stated Vanuatu’s citizenship for sale scheme – which allows individuals to acquire citizenship of the country in exchange for an investment – poses ‘heightened risks for the security of the EU and its Member States’ .
“The EU is especially concerned about investor citizenship schemes that are commercially promoted as providing visa-free access to the EU. Visafree access to the EU should not be used as a commercial commodity to be sold and bought. “
European Commission
The EU currently has a visa-free regime with 60 non-EU countries. Nationals of these countries can enter the Schengen area for short stays of up to 90 days in any 180-day period without a visa.
The EC stated the purpose of visa waiver agreements is to facilitate people-to-people contacts between the EU and a third country, not to enable nationals of other visa-required third countries to circumvent the EU short-stay visa procedure through the acquisition of citizenship. Investment citizenship scheme’s ‘serious deficiencies and security failures’ include the ‘very low rejection rate’, a lack of information exchange with applicants’ countries of origin, and the ‘granting of citizenship to applicants listed in Interpol’s databases’.
The EC will closely monitor alignment of visa suspension policy with investor citizenship schemes in Eastern Caribbean states, Vanuatu, Albania, Bosnia and Herzegovina, Moldova, Montenegro, North Macedonia, and Serbia).
Implications of Visa waiver suspension
Visa waiver suspensions can have a ripple effect on country’s development, especially on small nations. Some of the implications include:
- Economic Impact: Visa waiver suspensions can affect tourism and business travel, property market, leading to potential economic losses for the suspended countries. Reduced travel can impact hospitality, investments, transportation, and related industries.
- Diplomatic Relations: Visa waiver suspensions can strain diplomatic relations between countries. Such actions may be seen as a response to political or security concerns, leading to diplomatic tensions.
- Trade Relations: Implications can extend to trade, as easier travel often promotes business relationships, conferences and events. Suspensions can hinder trade partnerships and negotiations.
- Security Concerns: Visa waiver suspensions are often enacted due to security concerns. While these measures aim to enhance national security, they may not always guarantee foolproof protection.
- Travel Chaos: Visa waiver suspensions can inconvenience travelers who rely on visa-free access. This can include tourists, students, families, business travelers, and individuals with dual citizenship who may face longer visa application processes.
- Impact on International Organizations: Countries may face scrutiny or consequences from international organizations and treaties when they suspend visa waivers. They could potentially violate international agreements, affecting their standing on the global stage.
- Long-term Effects: Visa waiver suspensions can have lasting impacts, with countries finding it challenging to rebuild trust and reinstate visa-free access.
- Domestic Policy Changes: In response to visa waiver suspensions, countries may adjust their domestic policies, visa requirements, and security measures to address the underlying issues. Unmonitored migration policy can lead to increase in irregular migration, asylum applications.
- Passport power – Decline of the value of passport and respect it has with associated nations.
