Posted on 02/05/2004 11:55:58 AM PST by yonif
New Delhi, Feb. 5. (UNI): Terming the legislation passed by the Senate banning business process outsourcing (BPO) in Government contracts as narrow in scope, the United States today said the measure was not particularly focussed on India and called for international trade that benefits both the US and the partnering countries.
"Employment is a sensitive issue. It needs to be clear that international trade is a two-way street. There is a feeling in the United States that while the country's markets are extraordinarily open, those of other countries are not so much open," US Deputy Assistant Secretary David A Gross told media persons here.
As such, the United States is looking forward to working with countries in terms of market liberalisation, Gross said.
He clarified that the legislation relates to the Government contracts and is applicable till November.
"Its scope is narrow. It is not focussed on India but covers all trading partners. Even the Indian experts feel that the legislation is not going to affect Indian businesses," he claimed.
US Acting Commerce Secretary Michael D Gallagher said the international trade should benefit the people of all the trading partners.
"We embrace market-friendly activities but resist barriers to trade. There is a need for making international trade a two-way arrangement," he said, echoing Gross remarks.
Senator Craig Thomas had last week won passage for his amendment to the Senate's omnibus appropriations bill that bans some federal contracts to vendors using offshore labour.
The bill is expected to be signed soon by US President George W Bush.
Though the amendment is likely to have a fairly small effect on such outsourcing operations, many analysts say that it does demonstrate the rising political backlash in Washington against offshoring and the kind of double standards that many Americans apply when it comes to free trade policies.
Recently, Prime Minister A B Vajpayee had expressed concern over the legislation at a rally in Uttaranchal. Commerce and Law Minister Arun Jaitley had also said India would take up the matter with appropriate authorities in the United States.
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