Govt To Move WTO If Visa Talks With US Fail Next Month.

NEW DELHI: With the recent visit of US commerce secretary Gary Locke failing to address India's concern on professional visa fee increase and imposition of additional duties on government imports, the country will try for one last time to settle the issue bilaterally next month.

Commerce secretary Rahul Khullar will meet US undersecretary of commerce Francisco Sanchez in March to settle the issue, failing which India would approach the World Trade Organsation, or WTO, a senior official has said.

"We have already successfully demonstrated to the EU that we don't hesitate going to the WTO if we are wronged. It will not be any different with the US," a commerce department official told ET.

India had complained to the WTO about its generic medicines being seized at various EU ports enroute to third countries illegally, following which the EU agreed to change its customs laws.

The commerce department has already started consultation with legal experts on the articles under which the US could be challenged at the WTO. "We are going to go prepared with all documents and if talks fail we would soon give them a notice for WTO consultations," the official said.

The US has increased professional visa fees (H-1B and L-1 visa) by at least $ 2,000 for all US-based companies that have more than half of its employees on such visas. The hike that will stay till 2015 is expected to cost Indian IT companies like Infosys and Wipro $200 million annually.

The country has also imposed additional import duty of 2% on all government imports from countries like India that are not part of the government procurement agreement ( GPA )) of the WTO.

Commerce and industry minister Anand Sharma took up the issue with the US trade representative Ron Kirk and US commerce secretary Gary Locke at various forums without any concrete assurance so far.

"I can only tell you that we know how sensitive this is. But this was not targetted at Indian companies," US commerce secretary told ET during his visit earlier this month, without explaining how it could be sorted out.

Both provisions are part of the James Zadroga 9/ 11 Health and Compensation Act of 2010 which aims to set up a $ 4.3 billion fund for a period of five years 2010- 15) to provide free medical treatment to those affected by the 9/ 11 terror attack in New York.

Source : economictimes.indiatimes.com