As India and US bond, Sushma raises visa fee, social security issues with Kerry

India on Tuesday raised the issue of the recent hike in the fees of H-1B and L-1 visas and sought conclusion of a Totalisation Agreement with the US during the second Strategic and Commercial Dialogue between the two countries.

H-1B and L-1 visas are extensively used by Indian companies, particularly IT firms, providing services in the US. A totalisation pact would allow temporary workers to repatriate their social security contributions when they leave either country.

During the Dialogue, which is being held here for the first time, India asked the US to find a “just and non-discriminatory” solution to these issues.

“I sought US Secretary of State John Kerry’s support for resolution of long-pending issues of totalisation and the fee hike for H-1B and L1 visa that impact our people-to-people exchanges, which is a vital source of strength for our relationship,” External Affairs Minister Sushma Swaraj told the media after the Dialogue.

The parleys began last September in Washington DC. Secretary of State John Kerry and Commerce Secretary Penny Pritzker represented the US, while Swaraj and Minister of State for Commerce and Industry Nirmala Sitharaman represented India.

Last December, the US doubled fees to $4,000 for H-1B visas and to $4,500 for L-1 visas. Earlier this year, India dragged the US to the WTO Dispute Settlement Body calling the move discriminatory, as it believes that the measure targeted Indian IT firms operating there.

The issue was also raised during the commercial track of the dialogue by Sitharaman. She said the US has assured India that the matter will be looked into. Indian industry was also vociferous in raising the visa issue during the India-US CEOs Forum, which was held on the sidelines of the Dialogue. “We have voiced our concern and the financial impact it will have on our companies. But the US has assured us that this is not targeted against Indian companies,” Sitharaman said.

Both sides also discussed resuming the stalled negotiations for an India-US Bilateral Investment Treaty. According to Sitharaman, the draft BIT has already been shared with the US. However, according to Pritzker, the US wants a “high-standard” BIT.

“It is neither in our interest nor in India’s interest to have a BIT that does not bring high standards,” Prizker said.

Swaraj also sought the US’ cooperation in securing India membership in the Nuclear Suppliers’ Group (NSG) and permanent membership in the UN Security Council.

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