Months after India dragged the US to WTO over imposing increased fees on H-1B and L-1 visas, a Congressional report has warned American lawmakers that if the dispute moves to formal settlement phase, it could possibly result in a WTO-authorised trade retaliation against the US.
“If the dispute moves to the formal dispute settlement panel phase, one potential outcome could be a WTO determination that the disputed statutes are inconsistent with General Agreement on Trade in Services (GATS) obligations and a recommendation that the US should modify its laws to comply with the GATS,” said the Congressional Research Service (CRS) report.
CRS, an independent research wing of the US Congress, warned lawmakers that in such a scenario compliance procedures could subject the US to WTO-authorised trade retaliation if Congress does not amend the pertinent laws.
The brief two-page report and analysis on India challenging H-1B and L-1 visa fee increase before the WTO was provided to American lawmakers on November 16.