Commerce Minister Kamal Nath has protested to the United States Trade Representative over a move by the US Congress to probe how the H1B visas are used by the Indian IT companies as well as a complete overhaul of the program.
He told Deccan Herald on the margins of a meeting of the G-4 trade ministers from the United States, the European Union, Brazil and India that the US Congress is raising baseless allegations against the Indian IT firms over how H1B visas are being used.
Nath, who is angry over the US’ move to raise obstacles on IT professionals, said “such moves do not augur well for Washington which is demanding enhanced access to export its farm products to India in the ongoing Doha trade negotiations”.
In a letter written to his US counterpart, Nath alleged that the United States is hardening its stance on business visas instead of being sensitive to India’s demands in the Doha negotiations on “Mode-4” issues — the temporary transit of professionals across borders.
The US trade officials claim that they have conveyed to the Indian officials that the Bush administration is working with Congress on a compromise immigration bill that will significantly increase the number of H1B visas and shifting their allocation from a “relations”-based system to meeting the actual needs of business for professionals in various fields.
The limit
The current H1B limit is 65,000 — which was filled up for 2007 in a single day.
During the G-4 ministerial meeting, India and the United States remained daggers drawn over how to address the access for farm products and how to cut billions of dollars worth domestic farm subsidies, sources told Deccan Herald.
Apparently the United States was noncommittal when it came to a discussion of domestic supports — a move that disappointed the other three participants. The United States , however, pressed both the EU and India on market access, while India — along with the EU and Brazil — quizzed US Trade Representative Susan Schwab on domestic supports.
The US side asked India to indicate — line-by-line — what additional access it is prepared to provide under “special products” in response to what Washington might do on supports.
The United States refused to signal any figure below $19 billion for domestic supports. It currently maintains an offer of a $22-billion ceiling on supports.