Remove non-tariff trade barriers with US: Nasscom

NEW DELHI: Nasscom has proposed five non-tariff related measures that require

immediate looking into to promote trade relations between India and USA. These

proposals have been made keeping in view the impending visit of Prime Minister

Atal Behari Vajpayee to the US in mid-September.

The first issue is regarding the increase in the number of H-1B visas after

October 2001. According to the current status, the US government would grant

107,500 H-1B visas till September 2001 after which it will revert to the 65,000

limit until September 2002. The Information Technology American Association (ITAA)

has put an annual requirement of 300,000 IT professionals every year for the

next three years. Nasscom has already been lobbying for increasing the H-1B cap

to 195,000 every year for the next three years and wants this issue to be taken

up by the PM during his visit to the US.

The second issue is related to the issue of double payment of social

security. Indian software professionals going to the US on H-1B visas have to

pay social security in India as well as in the US. In US, the Indian software

professional ends up paying 14-20 per cent of his salary as social security. And

according to American laws, the payee is not eligible for social security until

he completes 10 years of service. Since the H-1B visa is for three years,

extendable by another three years, this payment does not make sense for the

software professional. Nasscom has urged the PM to take up this issue with the

US administration at the earliest, as only an initiative at the highest level

will have any effect in this case.

The third issue is related to the removal conditions relating to location in

the case of H-1B visas. Nasscom says that software professionals should be

allowed to work in any state after getting the H-1B visa, since software

projects require professionals to work in multi-locational projects. The

shameful example of handcuffing Indian software professionals was cited in this

regard and the Association urged that such instances would never be repeated if

this clause was removed. Nasscom has urged the PM to take up the issue of

amending this law in the US Constitution with the American President.

The fourth issue is regarding the granting of visas by the Immigration

Department. Nasscom’s recommendation is that visas should be granted by the

Trade Department since software professionals visiting the US for a short period

for projects is essentially a question of trade relation. The fifth issue is

taking the initiative to ensure that every country that adopts Internet should

also adopt Cyber laws. Otherwise it will be difficult for the law to prevail in

countries that have adopted Cyber laws. The recent incident of the ILoveYou

virus that is said to have originated in the Philippines is a case in point. The

so-called accused who hails from the Philippines did not get punished, as the

country does not have Cyber laws in place while the damage caused by the virus

had world-wide impact.

The proposals have not yet been made to the Prime Minister although Nasscom

has been in touch with the Ministry of Information Technology, the Ministry of

External Affairs and the Ministry of Finance and the PMO. According to Nasscom

president Dewang Mehta, the response from all concerned ministries has been very

positive.