Lok Sabha Question No. 7 (UNSTARRED), answered on 2016-07-18
Subject: Working Visa Issue in WTO
Ministry: COMMERCE AND INDUSTRY
Asked by: K. MARAGATHAM

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY

## (DEPARTMENT OF COMMERCE)

## LOK SABHA UNSTARRED QUESTION NO. 7 TO BE ANSWERED ON 18 TH  JULY, 2016

## WORKING VISA ISSUE IN WTO

## 7. SHRIMATI K. MARAGATHAM:

Will the Minister of COMMERCE & INDUSTRY ( वािणÏय एवं उɮयोग मंत्री ) be pleased to state:

- (a) whether India has taken up the issue of the decision of the United States to impose higher  fees  and  the  numerical  limits  on  work  visas  such  as  L-1  and  H-1B  in  the World Trade Organisation;
- (b) if so, the details thereof along with the response received therefrom;
- (c) whether the Government has claimed that these and comparable measures imposed on  the  country  are  not  in  conformity  with  several  provisions  of  the  General Agreement on Trade in Services (GATS) including those on movement on natural persons supplying services; and
- (d) if so, the details thereof?

## ANSWER

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## THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY (INDEPENDENT CHARGE) (SMT. NIRMALA SITHARAMAN)

- (a): Yes Madam.
- (b): India  has  taken  up  the  matter  in  the  Dispute  Settlement  Body  of  the  World  Trade Organisation (WTO) with respect to the following two measures by the US:
- (i) Measures relating to fees for L-1 and H-1B non-immigrant visas;
- (ii) Measures relating to numerical commitment for H-1B visas.

Consultations with the US authorities on the above measures was held on 11-12 May, 2016 at the  WTO,  Geneva.  The  US  side  provided  certain  information  with  respect  to  the  above measures and maintained that the measures are fully consistent with its WTO obligations.

(c): Yes.

(d): According to India, the US measures viz. Public Law 114-113 and Public Law 111-230 on non-immigrant visas such as H1B and L1 appear to:

- (i) be inconsistent with the terms, limitations and conditions specified by the United States in its Schedule of Specific Commitments under the GATS,
- (ii) accord to juridical persons of India having a commercial presence in the United States treatment that is less favourable than that accorded to juridical persons of the United States, as well as juridical persons of any other country, engaged in providing  like  services  in  sectors  such  as  the  Computer  and  Related  Services sector,  with  respect  to  which  the  United  States  has  taken  commitments  in  its Schedule of Specific Commitments, and
- (iii) affect the movement of natural persons seeking to supply services in a manner that  is  inconsistent  with  the  United  States'  commitments  in  its  Schedule  of Specific  Commitments.  These  measures  also  appear  to  nullify  or  impair  the benefits accruing to India directly and indirectly under the GATS.

The Government of India is of the view that these and comparable measures, (as well as any amendments, related measures, or implementing measures), taken by the United States are not in conformity with at least the following provisions of the GATS: Articles II, V:4, XVI, XVII, XX, and paragraphs 3 and 4 of the GATS Annex on Movement of Natural Persons Supplying Services. These measures also appear to be inconsistent with Articles III:3, IV:1 and VI:1 of the GATS.

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