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Economy May 10, 2012

India-US trade disputes set to escalate

By Firstbiz Staff

Indo-US trade disputes are set to escalate further as India may drag US to the World Trade Organisation (WTO) over two more disputes, sources have told CNBC TV-18.

It may drag US to the WTO on the 9/11 Act and other issues that the Indian government is planning to tackle, for which consultation is the first step to settle them.

Despite warm relations between the two countries there are issues the Indian government would like the US to resolve. AFP`

The recent visa hike undertaken by the US government is expected to hit Indian IT companies especially since the US government decided to hike H-1B visa cost. Government sources say that it is finalizing its legal stance on US visa fee hike dispute and preparations are underway for WTO consultations on visa fee.

As per government sources, the visa hike violates WTO commercial presence norms and also violates Movement of Persons Norms of the WTO. Apart from that, it also plans to seek consultations with US on Zadroga Act at WTO and is challenging James Zadroga 9/11 Health & Compensation Act.

As per government sources, the act levies 2 percent duty on goods imported by the US and that the this duty on nations is not in WTO govt procurement pact.

India is not a part of WTO Government procurement act. The act is also a violation of 'national treatment' norms of WTO, India has contended.

by Firstbiz Staff

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