India,US to hold talks on hike in H-1B visa fee

India and the U.S. will hold a two-day bilateral consultation from Wednesday under the aegis of the WTO over the American move to impose high fees on temporary working visas.

In March, India dragged the U.S. in WTO’s dispute settlement body against the latter’s measures imposing increased fees on certain applicants for L-1 and H1B categories. India has stated that the move would impact Indian IT professionals.

“The government of India looks forward to the consultations with the US at the WTO, scheduled for May 11-12,” the Commerce Ministry said in a statement.

It said India hopes that the U.S. will constructively engage to address its concerns regarding recent U.S. measures which impair the ability of both U.S.-based Indian companies and Indian professionals to supply services in America.

The H1B and L-1 categories of non-immigrants, for which there has been a significant fee hike, correspond with the categories of specialists and intra-corporate transferees, both of which are part of U.S.’ commitments under the WTO’s General Agreement on Trade in Services.

These are also the same categories that are most extensively used by Indian service suppliers, especially in the IT sector, supplying services in the U.S., it said.

The two countries share a mutually inter-dependent and beneficial relationship



in trade in services, which is well-documented, the statement said.

While the U.S. accounts for close to 60 per cent of software exports from India, Indian IT professionals have had a positive role in contributing to the competitiveness of the U.S. economy, it said. The increasing volume of services trade has contributed to significant economic growth as well as creation of employment opportunities within the U.S., it added.

“The situation therefore presents a win-win relationship for both nations. The U.S. fee hike measures for the H1B and L-1 categories are not only adversely affecting the competitiveness of India’s services industry engaged in the U.S. market, but also creating uncertainties for Indian service suppliers,” the statement said.

They also run counter to the basic principles of a transparent and predictable trading environment, which lies at the very heart of the WTO agreements, it said. “India is hopeful that deliberations during the WTO consultations shall be constructive and would result in removal of these trade restrictive measures,” it said.

The request for consultations is the first step in a dispute at the dispute settlement system of the WTO. Consultations give the parties an opportunity to discuss the matter and find a satisfactory solution without proceeding further with litigation.