The first round of consultation between the US and India on New Delhi’s case filed at the World Trade Organisation (WTO) against the significant increase in visa fee for non-immigrant workers in the country is scheduled in Geneva this week.
“India hopes that the US will constructively engage with India to address its concerns regarding recent US measures which impair the ability of both US-based Indian companies and Indian professionals to supply services in the US,” an official release from the Commerce Ministry stated on Tuesday.
The consultation is scheduled on May 11-12.
The US had introduced an additional fee of $ 4,000 and $4,500 for certain categories of H1B and L1 visas (both non-immigrant visas), respectively last December.
As per estimates made by IT body Nasscom, the move would cause losses estimated at $400 million annually.
The H-1B and L-1 categories of non-immigrants, for which there has been a significant fee hike, correspond with the categories of specialists and intra-corporate transferees, both of which are part of US’ commitments under the WTO’s General Agreement on Trade in Services (GATS), the release pointed out.
These are also the same categories that are most extensively used by Indian service suppliers, especially in the IT sector, supplying services in the US, it added.
The US fee hike measures are not only adversely affecting the competitiveness of India’s services industry engaged in the US, but also creating uncertainties for Indian service suppliers. They also run counter to the basic principles of a transparent and predictable trading environment, which lies at the very heart of the WTO agreements, the release stated.
While the US accounts for close to 60 per cent of software exports from India, Indian IT professionals have had a positive role in contributing to the competitiveness of the US economy. “India is hopeful that deliberations during the WTO consultations shall be constructive and it would result in removal of these trade restrictive measures,” it added.