The offshoring model in fact is the opposite of free trade. It is not trade at all but labor arbitrage. Unlike real arbitrage, the act of exploiting the wage differences is not ending the arbitrage opportunity. US companies create captive offshore centers in which the local employees are used to fulfill demand in the US while their wages are kept isolated from that same world demand.
This is an eloquent and learned way of saying what I attempted to say above about the difference between offshoring U.S. labor to India, China, etc. and expanding trade by our factories in Europe selling to Europeans -- or vice versa. The latter is free trade and former ain't.
I am exploring Googleland to find the total dollar amount of just how much U.S. taxpayers have paid/risked to date to help our "capitalists" do business over there building infrastructure such as the Dabhol Power Co. I think I am more likely to find those missing WMDs than how much taxpayers are helping our "capitalists."