US gives India assurance on outsourcing

Times of India ^

[JudgeSmales]

Got this in an Email this morning.

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

[freeeee]

W supposedly doesn't want to spend the 'political capital' of not resigning the assault weapons ban. It is said he doesn't want to give the Dems an issue.

But apparently he doesn't have a problem with this enormously unpopular decision to send American jobs overseas, an issue that the Dems will certainly seize, and so hot it could cost him the election. He's got plenty of 'political capital' for that.

Shows where his priorities are.

[samuel_adams_us]

Isn't there a way to sue the president, a class action suit, for shipping jobs overseas and outside the united states? Isn't there a clause in the constitution which forbids this, or the bill of rights? Is the president not destorying our right to freedom and the pursuit of happiness?

[Jeff Head]

Hatch is right, a non-American born should be President.

IMHO, Hatch has lost his mind on this one. The founders included that restriction in the constitution for very good reason. Thye didn't want some foreigner by virtue of marriage, or any other reason, being in a position to exert such leadership influence on the course and direction of the nation in favor of their homeland.

They had experiences with just such experiences coming from Europe in general, and England inparticular.

Jeff

[LibertyAndJusticeForAll]

I just want to know which country or countries (or person) bribed Hatch, so I can be on the lookout for 'em.

[Jeff Head]

BTW, I knew you were being sarcastic with that comment I quoted...I felt sick too.

[lelio]

Is this an older story from a couple of months ago? I remember it that time around and Jay Inslee, representive from the Puget Sound WA area, was all for stopping anti-offshoring legislation. Now he's changed his tune a little bit and wants the GAO to look into the matter.

[RogueIsland]

Let me understand this... all of you so-called "good conservatives" are upset because Bush is against using the powers of the government to dictate to businesses how they can and can't operate?

Some of us are even supportive of child labor laws. It's just terrible having a social conscience.

[dennisw]

Let me understand this... all of you so-called "good conservatives" are upset because Bush is against using the powers of the government to dictate to businesses how they can and can't operate?

 CORRECT! You must appreciate that not all freepers are retarded libertarians and free market uber alles types. The real world is immune to air fairy theories.

[Jeff Head]

Hatch lost my support a long time ago. He's rubbed too many shoulders and played too much footsie with the likes of Kennedy, etc. and done so in money making ways for me.

When he went to Congress he was a fire-breather. Over the years he has been worn down and somehow diverted far off track IMHO on many foreign policy and other issues, though his stand on some of the purley moral issues remains fairly strong.

He's a case study of what happens when you determine to make the opposition your friend and start playing politics and compromise with them instead of continuing to stand steadfastly for the right and against the opposition who would water fundamental principle down and ultiamately destroy it.

[vikingcelt]

"If this is true, this is one conservative who is voting for ANYBODY BUT BUSH next election." Seconded here. This, coupled with the fact that he won't protect us from the invasion by illegal aliens, just about does it. He's destroying our country, our culture, our freedoms and our right to make a living in the land of our birth. ENOUGH!!!

[George W. Bush]

IMHO, Hatch has lost his mind on this one.

Hatch is, at best, senile. A few weeks back, he shocked even the RIAA by suggesting they adopt methods to destroy the hardware on any computer that was suspected of holding pirated MP3's. Strange, crazy, weird old guy.

[LayoutGuru2]

I just spent the last 6 months training my replacement who happens to reside in India. Just waiting for the other shoe to drop now. My company can hire three people in India for what it costs to retain me.

I guess it just makes good business sense. Bleh!!!

Any ideas on a good 'outsourcing-proof' choice for my next career? No, I don't want to manage my local Dairy Queen.

[The Green Goblin]

Bush knows this is an issue that could split his base. It would also focus the election more on the economy, and away from national defense - the opposite of his campaign strategy. The politics here have nothing to do with Bush's opinion about offshoring. It all about next year's campaign. This is an issue he doesn't want anyone talking about. He wants it on the back burner at least until the election is over. So he wants to maintain the status quo and move on to other issues.

Bush is a fool. Odds are that some Democrat will seize this issue (as Christopher Dodd is already starting to) and win the election with a broad base of middle class support.

[scottlang]

If this is true, this is one conservative who is voting for ANYBODY BUT BUSH next election.

I agree, people vote their pocket books. If they fear for their jobs, and a dem promises to do something about it the center will go for it.

[dennisw]

Hatch is, at best, senile............

I've seen off the wall stuff coming out of him for years. He was still 95% good but with a real flake quotient.

[George W. Bush]

Let me understand this... all of you so-called "good conservatives" are upset because Bush is against using the powers of the government to dictate to businesses how they can and can't operate?

Bush is using federal power to restrict the rights of states to regulate business and employment practices. What about states' rights? Why not let them restrict the outsourcing if they want and then the free market can correct it if necessary by doing outsourcing in other states.

Or would you object to the free market working this out on a state-by-state basis?

[VeniVidiVici]

Funny how we consider the NYTimes as a step above (or below) The Enquirer, but the India Times is gospel.

[Delphster]

Let me understand this... all of you so-called "good conservatives" are upset because Bush is against using the powers of the government to dictate to businesses how they can and can't operate?

Lets see for starters EEOC ( affirmative action ), OSHA, EPA, Social Security taxes. It is great the Federal Governemnet does not interfere with American Business.

[freeeee]

all of you so-called "good conservatives" are upset because Bush is against using the powers of the government to dictate to businesses how they can and can't operate?

It's not a level playing field. Indian programmers entire pay is less than what American programmers pay in taxes alone. That coupled with the enormous cost of complying with innumerable government regulations makes us non-competetive. The American wage is inflated as a result.

This problem was caused by the government to begin with. "Retarded libertarians" indeed.

[jjm2111]

I agree w/ you. Hatch lost it there.