US ready to discuss visa fee hike issue with India in April

The US has proposed to hold consultations with India early next month on New Delhi’s complaint against its move to raise visa fees for non-immigrant workers at the World Trade Organisation (WTO).

The Commerce Ministry, which is working with a team of lawyers to prove that the visa rules discriminate against Indian IT companies operating in the US, is not too hopeful of a quick settlement at the consultation stage, a Commerce Ministry official told BusinessLine .

“We want the US to see our point of view at the consultation stage itself and revoke the visa fee hike, but this is unlikely to happen. We have to be ready to fight a case at the dispute panel. Our legal team is trying to prove violation of WTO rules on both de facto (in effect) and de jure (by law) basis,” the official said.

Last December, President Barack Obama brought in a legislation introducing an additional fee of $4,000 and $4,500 for certain categories of H-1B visa and L-1 visa, respectively. Since the increased fee is applicable only on companies that employ more than 50 foreigners or which have more foreigners than locals working for them, it mostly hurts Indian IT companies operating in the US.

Foreign Secretary S Jaishankar took up the matter with US Trade Representative Michael Froman during his visit to the US last week and pointed out the possible impact the visa fee hike will have on the Indian IT companies, according to officials in the Ministry of External Affairs.

As per estimates made by IT body Nasscom, the move would cause losses estimated at $400 million annually. “The MEA is keen to settle the matter during the WTO consultation process as it does not want yet another imbroglio with the US on trade and economic matters,” the official said.

This will be a difficult case for India to argue at the WTO as the legislation is applicable on all companies and doesn’t specifically target Indian companies. “Our legal team has to prove that discrimination is taking place by providing data which shows that it is only Indian companies that are getting affected because of the increased visa fees and not the American companies,” the first official said.

The legislation itself is also open to challenge as it discriminates against foreign workers by penalising companies for not hiring enough locals.

“The US has suggested April 5-6 as possible dates for consultations. We will examine the availability of our officials around that time and respond accordingly,” he added.