U.S. officials could soon be defending a fee increase on certain worker visas in front of a World Trade Organization dispute panel if Indian officials follow through on their threats to take the issue all the way to the international trade body, according to multiple reports.

Indian Commerce Secretary Rahul Khullar told reporters Tuesday that his government believes that the fee increases are inconsistent with WTO rules.

“Yes this (visa fee hike) is WTO incompatible. I will take up the matter under advisement,” he told The Times of India.

The complaint stems from the passage of the U.S. Border Security Spending Act last week. Under that bill, new fees would be imposed on companies that have over half their U.S.-based employees on H1-B or L-1 visas.

The added fees would cost those companies roughly $2,000 for each visa application. That is on top of fees already totaling around $2,000, meaning the price of outsourcing is set to double.

The revenue collected from the fees would then be used to beef up border security with Mexico.

The total cost for India’s $50 billion outsourcing industry is expected to be $200 million to $250 million annually.

Those that would be burdened by the new fees are Tata Consultancy Services Ltd., Infosys Technologies Ltd. and Wipro Ltd., India’s largest software exporters. Those companies are notorious for providing cheap Indian talent for American software companies. Most American tech companies would be exempt from the new fees.

“We have ways to get our voice heard. The law is WTO-incompatible. Let the other action be initiated, then I will respond. It will be difficult (for U.S.) to have two faces in this matter. We should be willing to live in a situation where trade is free,” Khullar told reporters.

Both the H-1B and L-1 visa programs have been fraught with problems for years. Reports have found that, through the program, companies often hire a foreign worker at a lower wage rate even though there is plenty of American talent available. Other reports have indicated that some American workers were forced to train their eventual replacements through the program.

Despite the obvious flaws with the program, U.S. officials should be weary of the case making it all the way to the WTO, where America has not fared well at all. The U.S. comes out a loser in nine of 10 trade disputes brought before the body.

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