A Congressional report warns US lawmakers that trade retaliation against the nation, authorized by the World Trade Organization (WTO), could be possible, should the fees for L-1 and H-1B US visas dispute go to a formal settlement.
The Congressional Research Service report warns that one potential outcome, if the issue goes to the formal panel settlement phase, could be the determination that the dispute statutes are inconsistent with the obligations of GATS (General Agreement on Trade in Services) by the World Trade Organization. The WTO might also recommend that the laws of the US should be modified, to comply. The US Congress independent research wing warns that if Congress does not change the relevant laws, they could face trade retaliation, authorized by the WTO.
On 16 November, US lawmakers were presented with a copy of the two-page report and analysis of the challenge to the increase on L-1 and H-1B US visas, brought by India. India dragged the US to the dispute settlement body of the World Trade Organization, in March 2016. This related to the measures imposed by the US on fee increases to some applicants for the visas. India claims that this would have an adverse effect on Indian IT professionals.
India also claims that the US is violating their obligations under GATS and is discriminating towards non-US service providers. But, others claim the challenge is that India is attempting to offset their loss to the US over the regulation of solar energy in Indian law, in another WTO dispute.