Khullar warns US on new visa law

The recent US government decision to double visa fees for professionals is not compatible with World Trade Organisation (WTO) rules and India is ready to take the necessary action, said Union commerce secretary Rahul Khullar.

“I will take the matter under advisement. The point is, if some country wishes to shoot itself in the foot, I have no problems. My concern is when they start shooting me in the foot. If the US wishes to put its protectionist barriers to hurt itself, it is well within its rights. But where the specific measure is targeting my commercial interest, I cannot keep quiet,” Khullar told reporters here today.

He said the government would seek to resolve the matter at the earliest through diplomatic channels. He, however, did not say that India would drag the US to the WTO appellate tribunal.

“We have ways to get our voice heard. The law is WTO-incompatible. Let the other action be initiated, then I will respond. It will be difficult (for US) to have two faces in this matter. We should be willing to live in a situation where trade is free,” Khullar said, adding that he had taken up the issue with US officials.

Last week, commerce and industry minister Anand Sharma sent a strongly-worded letter to US Trade Representative Ron Kirk, saying the move was “highly discriminatory”.

According to the US Border Security Spending Act, enacted last week, work-related visas such as the H1B and L-1 would now cost an additional $2,000 over the current rate, which is $2,000-$2,500.

PROTECTIONISM?

# The US has raised fees for certain categories of H-1B and L1 visas by at least $2,000 for the next five years

# US says the increase will help it foot nearly $550 million, of the proposed expenditure of $650 million, on increasing security along the US-Mexico border

# The fee increase is expected to cost Indian companies, mainly IT outsourcing firms, about $200 million annually

Sharma had also said there would be a cost implication of around $200 million annually for companies, especially in the information tchnology sector, that send professionals to work in the US as part of various projects. The move would impact the companies of Indian origin, that account for about 12 per cent of the total visas issued by the US, the minister said.

According to the National Association of Software and Services Companies, this will increase the annual visa cost for India’s $50-billion outsourcing industry by $200-250 million annually. The US government grants around 80,000-85,000 of such visas to Indian firms annually. The bill is aimed at raising funds for the $600-million US-Mexico border security programme.