US work visa row hits Indians particularly hard
The India-US bilateral may have been described as the ‘partnership of the century’ but even friends have differences. and, in politics and statecraft, sovereign interests always come first. And so it is that the US, ostensibly spooked by that now-hackneyed idea of Indians stealing American jobs, effectively doubled the fees for certain categories of temporary work visas issued to skilled professionals. The H-1B and l1 visas fees are now up to $4,000 and $4,500 respectively — and this is expected to quadruple the Indian IT sector's visa costs to $400 million. India, in turn, has responded by filing a complaint with the World Trade Organisation, arguing that the measures are inconsistent with the Schedule of Specific Commitments under the General Agreement on Trade in Services, to which the US is a signatory. This step in itself is uncommon for India, as New Delhi usually prefers to resolve contentious issues on a bilateral basis, rather than approach multilateral forums. Even at this point, the dispute is essentially being handled at the country-to-country level — India has asked the US for what are called Article IV consultations under a dispute settlement understanding. If these consultations fail, then India could ask for a dispute settlement panel to be set up to adjudicate the issue. The US, in response, has argued that its decision to increase visa fees is in compliance with all international norms and is not targeted at any one country. On paper, this may be correct because the visa fee hike is not India-specific. However, Indian citizens make for a large chunk of the skilled work visas that are issued every year — in 2013-2014, Indians were issued 67.4 per cent of the H-1B visa (putting India at the top of the H-1B list) and 28.2 per cent of the l-1 visas (still one of the largest users). Clearly then, India is a prominent target.
It is disappointing to see how the US is becoming a veritable fortress like Europe or Japan. One of the factors that has made the American economy strong and vibrant for all these years is that it has been able to attract the best talent from around the world and welcome them with open arms. And, in turn, these professionals and companies have contributed in no small measure to the American economy. According to a report by the National Association of Software and Services Companies, India’s apex association in the IT sector, contrary to the popular view that Indians were eating into the American job pie, Indian IT companies provided at least 4,00,000 jobs in the US, of which around 3,00,000 were held by either US citizens or permanent residents. These companies also invested billions of dollars in the US and paid billions more in taxes. Such an ‘open borders' model should be an inspiration for emerging powers, including India (imagine skilled Bangladeshis, Sri lankans and Nepalese professionals working in Indian industries). Unfortunately, the US itself is turning inwards.