The Hindu Business Line : No UK move to curb outsourcing, says Jack Straw

THE visiting Secretary of State in the Foreign and Commonwealth Office of the UK, Mr Jack Straw, on Friday said there is no move in Britain to curb outsourcing to India.

Mr Straw indicated this at his meeting with the Union Commerce and Industry Minister, Mr Arun Jaitley, here on Friday evening.

Mr Jaitley, on his part, said that even at his Thursday meeting with the Aspen Group from the US, he had pointed out that moves in this regard in the US were of a protectionist nature and went against the spirit of free trade.

On multilateral trade issues, Mr Jaitley briefed Mr Straw about India's perspective on the ongoing trade negotiations and appreciated the UK's support to India on key WTO issues. He pointed out how India had been proactive in the multilateral trade negotiations over the last couple of years.

On market access, he said, "We have the greatest sensitivities because almost 650 million people in the country are dependent on it. One tariff line could affect a few million people. For India, therefore, it is not only subsidies, it is market access. We cannot open our door straightway (in agriculture), even as in services and in manufacturing, we are opening our doors. We are participating actively in the multilateral forum. However, in agriculture, our flexibilities are limited."

Mr Straw spoke of the possibilities for enhanced bilateral trade and economic cooperation. In this context, he raised several bilateral issues, such as the perceived high level of tariffs on beverages and spirits and some issues pertaining to air services. He also urged greater opening up of legal services, as it could be mutually beneficial for both the countries.

Mr Straw said that in the EU, the UK had been consistently supportive of India's position on multilateral and other trade issues — a point that Mr Jaitley acknowledged and appreciated.

The UK is the second-largest trading partner of India and the largest in the European Union. Indo-UK bilateral trade exceeded $5 billion in 2002-03, and the trend for the current fiscal up to September 2004 shows an upswing of more than 5 per cent over the same period last year, according to an official release.

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