US visa bill incompatible with WTO,asserts India

The recent visa restrictions imposed by the United States are not compatible with World Trade Organisation WTO regulations and might lead to a formal filing before the WTO. The US Congress passed legislation on Thursday aimed at strengthening security along its border with Mexico but the carryover effect has Indian officials whispering the words WTO dispute.

The Indian government has protested to Washington against what it called a highly discriminatory US immigration bill that will double the cost of work visas for some high-profile Indian companies. Funds for the bill would be raised through visa fee hikes that the Americans say would affect Indias Tata Consultancy Services TCS,Infosys Technologies,Wipro and Mahindra Satyam.

Yes,this is WTO-incompatible; I have no doubt about it, Trade Secretary Rahul Khullar told reporters today,dubbing the new law further protectionism by the United States. Commerce and Industries Minister Anand Sharma said that the bill would cost Indian companies an extra 200 million a year and erode their competitiveness when they send professionals to the US.

However,some officials and industry experts are sceptical about whether India can drag the US to the WTO on the issue. There is a case,but only if the WTO agrees that the legislation was aimed at restricting Indians specifically, pointed out a ministry official who requested anonymity.