India may move WTO over new US visa Bill

India may drag US to the World Trade Organisation for its new “protectionist” move in hiking professional visa fees, a step that will make Indian IT companies less competitive in the American market.

The fee hike is expected to cost Indian companies, mainly IT outsourcing firms, about $200 million annually. India “cannot keep quite” on an issue that hurts its commercial interests, the commerce secretary, Mr Rahul Khullar, said on Tuesday, making it clear that moving the WTO on the matter is being considered seriously.

“Yes this (visa fee hike) is WTO incompatible... I will take up the matter under advisement,” Mr Khullar told reporters when asked if India was considering to drag the US to WTO on the issue.

Under the Emergency Border Security Suppl-emental Appropriations Act, 2010 — popularly called the Border Security Bill — the United States has hiked fee for certain categories of H-1B and L1 visas by at least US $ 2,000 for the next five years.

Protesting the American move, the commerce and industry minister, Mr Anand Sharma, wrote to the US Trade Representative Ron Kirk last week saying that the visa fee hike would cost Indian firms US $200 million a year, making them less competitive.

Mr Khullar said the hike in H-1B and L-1 visa fees is a protectionist move that would also hurt the US interest.

Meanwhile, the US said it is examining if the new law on visa fees was not WTO compliant.

“Yes, we are reviewing a suggestion that this bill (border security bill) is not WTO-compliant. I am not aware that we’ve reached any final judgement, but we're not sure that necessarily any WTO issues are triggered,” the state department spokesman, Mr P.J. Crowley said. —