Canadian lawyers and business experts believe that a new opportunity has opened up for Canada after the Donald Trump administration announced a hike in fees for the popular H-1B visa in the United States. They believe that if Canada can act quickly, it can attract skilled workers who have lost employment opportunities in the United States. But many also warn that workers who choose Canada as an alternative could face challenges within the country's immigration system.

Canadian Prime Minister Mark Carney has indicated that he is taking the issue seriously. Speaking at a meeting of the Council on Foreign Relations in New York City on Monday (September 22), he touted Canada's own research and artificial intelligence (AI) talent. But he lamented that, sadly, most of it goes to the United States.

Late last week, the Trump administration imposed a $100,000 (£74,000) fee on new H-1B visa applicants. Tech companies have long relied on the visa to legally hire foreign workers in the US. Canadian citizens also applied for visas under the program - about 1 per cent of all applicants in 2019 were Canadians.

The White House said the new rules would not apply to those currently working in the United States on H-1B visas. But the rule, which has already been implemented despite legal challenges, is expected to limit employment opportunities in the United States for skilled foreigners. Experts say the hardest hit will be international students who have recently graduated from US universities and were hoping to work in the United States long-term.

Canada-based immigration lawyer Evan Green said it was a "great opportunity" for the Canadian government. The nonprofit Build Canada echoed that sentiment. In a statement Monday, they said that hundreds of thousands of skilled and highly paid H-1B professionals are now looking for new destinations. Canada, with its world-class research institutions, proximity to the United States, the same time zone and high standard of living, is the most natural destination for them.

Research has also shown that multinational companies move elsewhere when immigration policies in the United States become restrictive for skilled workers. After the H-1B visa cap was reduced by 70 percent in 2004, many companies hired the same workers in Canada instead of the United States.

In addition, in recent years, there has been a surge in interest in Canada among H-1B visa holders. In 2023, the Canadian government announced a three-year work permit opportunity for these visa holders working in the United States. The program closed after 10,000 applications were received in just 24 hours.

But it's not clear whether many have made it to Canada in recent years. Calgary lawyer Mark Holthe said some of his clients have moved to Canada after being unable to renew their visas in the United States. But he added that many are now having trouble getting permanent residency, leaving their future uncertain.

Economist Mikal Skuterud warns that more needs to be done to make Canada an attractive destination. The potential is there, but it should not be exaggerated, he says. According to him, Canada has limited immigration in recent years, as well as created political controversy over the temporary foreign worker program. The country's opposition Conservative Party has called for the program to be abolished.

Skuterud also said that on average, Canada's wage structure is lower than in the United States, making it difficult to retain talented workers. However, he added that the H-1B program has contributed significantly to US economic growth, especially in high-tech research and innovation. So Canada should try as well.

While Immigration, Refugees and Citizenship Canada (IRCC) did not comment directly, spokesman Matthew Krupovich said programs such as Express Entry and the Global Skills Strategy remain open to bring in skilled workers. He said we will continue to find new solutions to attract the best talent in the world.