The Hindu Business Line : `US business houses opposed to curbs on outsourcing'

US business houses by and large are opposed to any curbs on outsourcing, as this was nothing but a "political proposal" in an election (Presidential) year. And the matter has become a political issue in the US, not allowing economics to work.

Participating in an interactive session on `Globalisation, technology and the impact of dynamic changes in the workplace with focus on India', organised by The Bengal Chamber of Commerce and Industry (BCCI) here, Dr Harry Harris, President, Global Management Associates, USA and Prof of International Affairs at University of California at Berkeley, said: "India is only being made a scapegoat and there is no chance of any such legislation being passed by the Congress, that is, both the House and the Senate."

He clarified that US chambers and many other national bodies, including those representing the information technology sector, have severely opposed any such legislation for bringing in curbs on outsourcing that may threaten US jobs.

On the contrary, companies involved in outsourcing can become more productive, he pointed out. Dr Harris stated that the proposed anti-outsourcing legislation in US was strictly for political reasons. Even if it is passed by the Congress, the US President will veto it.

Reiterating that he himself was opposed to any such legislation, Dr Harris, who has also served at the White House as a professional staff member, said outsourcing was an issue that concerned the involved companies themselves, and how productive they become at the end of the day.

The key problems in the US now were economic issues (especially the agricultural subsidies) and other matters pertaining to healthcare, foreign policy etc. According to him, the three basic planks of globalisation in today's context were spread of technology, (India being singled out as a major example of this with its technological strengths), role of individual and foreign institutional investors, especially in the capital markets and dissemination of global information through the Internet.

Talking specifically on improved Indo-US bilateral relations, especially on the economic cooperation front, he said trade has grown substantially to $ 18 billion during 2003, with India enjoying the favourable balance. Some $ 500 billion will be added to world trade by 2009.

Stressing on the importance of trade ties in the above context in days ahead, he felt the areas of concern were actually the politically intractable problems such as environment and global warnings. "We need to stimulate the global trade engines, as globalisation has now come to stay."

Admitting the presence of trade protection issues in the US context, he lauded India's leadership role, championing the cause of the developing nations, at the Cancun WTO ministerial last year. He also clarified that all trade talks have this hang-up of agricultural subsidies. Stating that he was opposed to all forms of subsidies, D Harris said India, US and other developing countries should address this issue jointly.