Posted on 06/14/2003 5:49:21 AM PDT by sarcasm
WASHINGTON: The Indian government and businesses have won a major assurance from the Bush Administration on the issue of outsourcing.
A senior US official has said Washington is against any attempt by state governments to legislate a ban on outsourcing on the lines of what is being considered in New Jersey and other states.
The official, US Trade Representative Robert Zoellick, gave this assurance in course of three hours of intensive talks with Indian Commerce Minister Arun Jaitley, during which they discussed subjects ranging from the movement of people to the export of Indian mangoes to the US.
The length of the talks itself was indicative of the wide range of bilateral and multilateral topics under discussion as the two sides try and bump up their modest $ 15 billion trade to greater levels.
But the controversial issue of outsourcing was clearly on top of the pile and Jaitley said he had explained that the public and political opinion in India regards the move by some US states as "completely contrary to the spirit of market access and creates an adverse environment when negotiations were on in various other sectors."
Zoellick, he said, was alert to the brouhaha the issue had caused in India and conveyed to him that the Bush Administration opposes the states’ move and is persuading them not to go ahead with it.
In at least half a dozen states, state legislators are considering legislation to put a crimp on outsourcing claiming it is taking away local jobs. Outsourcing to India is projected to be a $ 20 billion business in the next five years, mostly from the United States.
"The essence of market access in services really is individuals and companies -- that people are entitled to the most efficient service at the best rate -- and if these efficient services are provided by India and some other country, we feel it will not be appropriate for legislation to impede the market forces," Jaitley told correspondents after his day-long meetings in Washington.
The Indian team also managed to red flag another contentious issue that has gone unattended for several years. This involves Indian workers on temporary visas having to pay US social security taxes without enjoying the benefits accruing to them because they return home before the ten years it takes for the contributions to mature.
Each year, Indian businesses and workers are estimated to pay a staggering $ 500 million to the US Social Security system. Although many of the workers become immigrants and stay on to benefit from their contribution, the process is unfair on the increasing number who return to India after having debited up to 15 per cent of their salary into the US system.
The US has treaties (called a Totalisation Agreement) with some countries that enjoin it to return the social security contribution to workers when they return home. The Indian side has persuaded Washington to consider similar law with respect to India, Jaitley said.
As far as I can tell, this is not a political winner for him. He simply looks foolish when he says he is trying to fix the economy when the engine of economic recovery, jobs, is dying as companies shed American jobs by the thousands. Alot of these jobs will find their way to India. This is a contradiction that can be a huge problem for the administration.
I wish someone could explain to me how this practice is good for America.
But "good" on it own merrits, it ain't.
Well said
It's been happening for many years - people are finally starting to notice.
Not at all. The state of New Jersey is free to contract business to whomever they choose. In the case of outsourcing they prefer to 'buy American'. What's wrong with that?
No - they didn't want tax moneys going to companies which then outsourced government work to India.
Good article here:Jobless Recovery Means Lurch to Left by Paul Craig Roberts
Oh, too bad!!!
We have a huge H1B job thief PROBLEM in our area!!
I was at the TAXPAYER supported library in my town the other afternoon. About 15 Indians were in the area where the books related to IT and DP are shelved.... and more were checking out books.... some with children, wives and old folks( their parents perhaps) in tow. Looked like bombay time and the smell of something "weird" was in the air!!
Let's see... they are NOT citizens ... they use our FREE library, our taxpayer supported roads, water systems, sewer systems and other public facilities.... they take OUR jobs and they do NOT want to pay for S.S.
Well, that is just TOO BAD!!
Get them OUT OF THIS COUNTRY!! HIRE AMERICANS who pay taxes... ALL SORTS OF TAXES!!!
BUSH had better side with American workers or he is toast served at a demo-rat breakfast with curry jam!!!!
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