Ohio ban, visa fee hike to dominate TPF meet

Updated on: Wednesday, September 22, 2010

India's disappointment over recent "protectionist" measures by the US including increase in visa fee for IT professionals and Ohio's ban on government outsourcing will be raised at the high level ministerial meeting here.

The Trade Policy Forum (TPF),the principal trade dialogue platform between the two countries, will be co-chaired by visiting Commerce and Industry Minister Anand Sharma and US Trade Representative Ron Kirk.

Sharma is accompanied by senior officials,including Commerce Secretary Rahul Khullar.

"They (protectionist measures) will be on our agenda," a senior Indian official said expressing hope that the issues could be sorted out through a bilateral dialogue without India having to go to the World Trade Organisation.

In any case, India does not want to vitiate the bilateral trade environment with the US in the run-up to President Barack Obama's visit to India in November, sources said.

Of the India's total USD 50 billion IT and ITES exports,   the US accounts for about 60 per cent. Besides, the bilateral merchandise trade was USD 36.5 billion in 2009-10. India is perturbed over a number of steps take by the US in the recent
past, which are "protectionist" in nature.

Under the Border Security law-- the US has hiked fee for certain categories of H-1B and L1 visas by at least USD 2,000 for the next five years.

The ban on government offshore outsourcing by Ohio state has also not gone well with India even though it would not immediately impact the Indian IT exports.

India's trade and industry also wants the government to voice its concern over the 'Buy America' law under which the companies availing of state incentives must source their requirements from the US itself.

Another important matter, which India is expected to raise during the TPF, is early implementation of a proposed totalisation agreement with the US. Under this, professionals on short-term work visits to America would be exempted from
paying social security taxes.

The pact once implemented will benefit lakhs of Indian professionals visiting the US.

The last TPF meeting took place in October 2009 in New Delhi.

Ohio ban, visa fee hike to dominate TPF meet

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