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Wednesday, Aug 18, 2010
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National

Visa fee hike: India may drag U.S. to WTO

Sujay Mehdudia

NEW DELHI: Terming the recent announcement of the U.S. to dramatically hike H-1B and L-1 visa fee discriminatory and protectionist, India on Tuesday indicated that it was readying to drag the U.S. to the World Trade Organisation (WTO) on the issue.

“The fee hike is expected to cost Indian companies, mainly IT outsourcing firms, about $200 million annually. India cannot keep quiet on an issue that hurts its commercial interests,” Commerce Secretary Rahul Khullar said, indicating to reporters that moving the WTO on the matter was being seriously considered. “Yes, the visa fee hike is WTO incompatible. I will take up the matter under advisement,” Mr. Khullar said when asked if India was considering dragging the U.S. to the WTO on the issue.

Commerce and Industry Minister Anand Sharma wrote to U.S. Trade Representative Ron Kirk last week, asking the country to re-consider the whole issue in the interests of the strong bilateral ties both countries enjoyed.

Mr. Khullar said the hike was a protectionist move that would hurt U.S. interest also. “If the U.S. wishes to put up its protectionist barriers to hurt itself, let them do it. But where a measure is specifically targeting my commercial interest, I cannot keep quiet,” he said. Under the Emergency Border Security Supplemental Appropriations Act, 2010, the U.S. has hiked the fee for certain categories of H-1B and L1 visas by at least $2,000 for the next five years stating it would help it foot nearly $550 million, of the proposed expenditure of $650 million, on increasing security along the U.S.-Mexico border.

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