India to issue another warning to US on hike of professional visa fees

[OhioChick]

Source: Economic Times of India

21 Jun, 2011, 12.39AM IST, Amiti Sen,ET Bureau

NEW DELHI: India will issue yet another warning to the United States on the non-compatibility of the recent hike in professional visa fees and imposition of additional import taxes on government purchases with World Trade Organisation, or WTO, rules. Commerce and industry minister Anand Sharma will take up the issue with US Trade Representative Ron Kirk later this week.

"We are seriously pursuing the issue with the US government as we feel that both the measures violate global trade rules. The minister will discuss the issue at length with the USTR," a commerce department official told ET. Sharma is scheduled to meet Kirk in Washington DC on Wednesday.

India had issued a non-paper or an informal communication to the US earlier this year stating that both the measures, that were part of the country's attempt to fund its enhanced border security plan and health programme for 9/11 victims, flouted multilateral trade norms of the WTO. The US, however, is yet to respond to the communication.

"The minister will try to drive home the point that we are not willing to let go of the issue as the measures have a significant negative impact on Indian business," the official said, adding that the commerce ministry is in consultation with WTO lawyers and is preparing the ground for filing a case if required.



Read more: http://economictimes.indiatimes.com/news/nri/visa-and-immigration/india-to-issue-another-warning-to-us-on-hike-of-professional-visa-fees/articleshow/8930770.cms

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"The US increased professional visa fees (H-1B and L-1 visa) by a minimum $ 2,000 for all US-based companies that have more than half of their employees on such visas till 2015. It would mostly affect Indian IT firms, like Infosys and Wipro , and is expected to cost them $200 million annually."