India has asked the US to set up a high-level group to discuss its concerns on the US Totalization Act (under which Indian workers end up losing their social security refunds) and the high visa costs for skilled workers.

Deputy US Trade Representative (USTR) Robert Holleyman met Commerce Secretary Rita Teaotia for preliminary discussions on the agenda for the next round of the joint trade policy forum, scheduled for Washington in October.

New Delhi also suggested a separate working group to discuss the issue of market access for Indian pharmaceuticals and traditional AYUSH pharmacopoeia and professionals, a Commerce Ministry release said.

The India-US trade policy forum, which is basically a dialogue at the ministerial level to promote trade and investments between the two countries by addressing tricky issues, was revived last November after a gap of four years, when USTR Michael Froman met Commerce and Industry Minister Nirmala Sitharaman in New Delhi.

Key issues

“The Commerce Secretary wants the high-level group to discuss issues of high visa costs and corresponding higher wage implications and its impact on India’s IT industry under the US Immigration Reforms and on Executive Visa Guidelines due to come into force on August 19, 2015,” the release added.

On the issue of the US’ Totalization Act, Teaotia pointed out that the policy was discriminatory towards Indian workers in the US, who ended up losing their social security contributions due to the existing discrepancies in the visa and social security regimes.

India has been pushing the US for a bilateral Totalization Agreement that would exempt short-term Indian workers from contributing to social security in the country. The Secretary also hinted that India could consider legal recourse if its concerns were not met.

New Delhi also discussed market access issues related to agrarian products such as rice, mangoes, pomegranates and table grapes and non-tariff barriers in textile exports.

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