Terming the recent announcement of the U.S. government to dramatically hike H-1B and L-1 visa fee as discriminatory and protectionist, India on Tuesday strongly indicated that it was readying to drag the U.S. to the World Trade Organisation (WTO) on the issue.
“The fee hike is expected to cost Indian companies, mainly IT outsourcing firms, about $200 million annually. India cannot keep quiet on an issue that hurts its commercial interests,” Commerce Secretary Rahul Khullar said, indicating to reporters that moving the WTO on the matter was being seriously considered.
“Yes, the visa fee hike is WTO incompatible. I will take up the matter under advisement,” Mr. Khullar said when asked if India was considering dragging the U.S. to the WTO on the issue.
Commerce and Industry Minister Anand Sharma wrote to U.S. Trade Representative Ron Kirk last week, asking the country to re-consider the whole issue in the interests of the strong bilateral ties both countries enjoyed.
Mr. Khullar said the hike was a protectionist move that would also hurt U.S. interests. “If the U.S. wishes to put up its protectionist barriers to hurt itself, let them do it. But where a measure is specifically targeting my commercial interest, I cannot keep quiet,” he said. Under the Emergency Border Security Supplemental Appropriations Act, 2010 (popularly called the Border Security Bill), the U.S. has hiked the fee for certain categories of H-1B and L1 visas by at least $2,000 for the next five years.
