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| US visa fee hike a protectionist move: CII |
| Press Trust of India / New Delhi Aug 13, 2010, 20:47 IST |
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Terming the US move to effect a huge hike in the fee for H-1B and L-1 visas sought after by Indian professionals as "protectionist", the Confederation of Indian Industry (CII) today said it will be detrimental to the economic interests of both countries.
US President Barack Obama is all set to sign into law a new Border Security Bill proposing a steep hike in visa fees, which would entail an additional expenditure of up to $250 million annually for Indian IT firms.
While urging the US Administration to reconsider the "largely protectionists provision", the CII said: "The legislation would burden Indian industry with additional costs, while being detrimental to the economic interests of both countries."
The hike in visa fees to fund new security measures along the US-Mexico border will result in Indian IT companies having to shell out up to $250 million annually on visa costs.
Commerce and Industry Minister Anand Sharma, in a communication to US Trade Representative Ron Kirk, had said the visa fee hike was a discriminatory step that would hurt the interest of Indian companies operating in that country.
The chamber also expressed concern over the proposed Foreign Manufacturers Legal Accountability Act of 2010, which seeks to protect US consumers by requiring foreign producers and manufacturers to assume all liabilities arising out of their products.
Preliminary estimates suggest that the additional cost of compliance with this new American law for Indian companies could be anywhere between $300 million and $500 million, it said.
Sectors like chemicals, textiles and engineering are expected to be the most impacted by this new regulation, it said.
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