India seeks refund of dues to past H1B visa holders
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India has built up a strong case for the US refunding to Indian professionals their social security contributions made during their temporary employment in the US under H1B visas. The contributions run into $500 million a year.
Commerce and Law Minister Arun Jaitley, during discussions with US Trade Representative Robert Zoellick here, has sought action on India's request for a "totalisation agreement" to refund the contributions to past H1B visa holders who have returned home.
The agreement is not in sight yet, but Jaitley felt some progress has been made with the USTR at least responding on the subject now. Having provided some clarifications last week, India now awaits an early American response.
Under the US's social security scheme, deductions up to 15 per cent of an employee's salary are made for social security, but the benefits become available only after 10 years. For Indians returning home after working in the US for six years, the maximum duration of H1B visas, this contribution has turned out to be a big drain.
Jaitley also took up with Zoellick the anti-dumping issue sought to be raised on India's shrimp exports by the US's Southern Shrimp Alliance. He argued that this alliance cannot raise a dispute since it does not have the requisite strength specified under the US law. India, as the largest exporter of shrimp to the US, has sought "fair application" of its rule.
The Commerce Minister also made out a case for the US opening the doors to Indian mangoes, which are presently barred on the ground pest risk. Jaitley said a risk analysis of Indian mangoes has been submitted recently.
Another pending issued taken up Jaitley concerns restoration of the GSP (Generalised Scheme of Preferences) on 842 items. The facility was withdrawn over the last 11 years because of "inadequate" intellectual property rights protection in India. Now that Parliament has amended the IPR law, India feels it's time to restore GSP. The dialogue on this is still continuing.
Jaitley, who also held meetings with Commerce Secretary Don Evans, presented an Indian perspective on the World Trade Organisation issues at the Carnegie Endowment for Peace
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India has built up a strong case for the US refunding to Indian professionals their social security contributions made during their temporary employment in the US under H1B visas. The contributions run into $500 million a year.
Commerce and Law Minister Arun Jaitley, during discussions with US Trade Representative Robert Zoellick here, has sought action on India's request for a "totalisation agreement" to refund the contributions to past H1B visa holders who have returned home.
The agreement is not in sight yet, but Jaitley felt some progress has been made with the USTR at least responding on the subject now. Having provided some clarifications last week, India now awaits an early American response.
Under the US's social security scheme, deductions up to 15 per cent of an employee's salary are made for social security, but the benefits become available only after 10 years. For Indians returning home after working in the US for six years, the maximum duration of H1B visas, this contribution has turned out to be a big drain.
Jaitley also took up with Zoellick the anti-dumping issue sought to be raised on India's shrimp exports by the US's Southern Shrimp Alliance. He argued that this alliance cannot raise a dispute since it does not have the requisite strength specified under the US law. India, as the largest exporter of shrimp to the US, has sought "fair application" of its rule.
The Commerce Minister also made out a case for the US opening the doors to Indian mangoes, which are presently barred on the ground pest risk. Jaitley said a risk analysis of Indian mangoes has been submitted recently.
Another pending issued taken up Jaitley concerns restoration of the GSP (Generalised Scheme of Preferences) on 842 items. The facility was withdrawn over the last 11 years because of "inadequate" intellectual property rights protection in India. Now that Parliament has amended the IPR law, India feels it's time to restore GSP. The dialogue on this is still continuing.
Jaitley, who also held meetings with Commerce Secretary Don Evans, presented an Indian perspective on the World Trade Organisation issues at the Carnegie Endowment for Peace
