The Hindu Business Line : `34 US States for anti-offshoring law'

AS many as 34 US States, including Alabama, Arizona, Illinois, and New Jersey, have proposed legislations restricting offshoring to low-cost destinations, according to a recent Unctad report.

"In response to expansion of offshoring of services, there have been vocal reactions in both US and Europe. Concern has been expressed that growth of white-collared jobs in export-oriented services in countries such as India, the Philippines and the Caribbean, signals employment losses in the developed countries and potential to harm these economies," said the Unctad World Investment Report.

The States that proposed legislation restricting offshoring in 2004 include California, Florida, Georgia, Hawaii, Indiana, Kansas, Kentucky, Maryland, Michigan, Minnesota, New Mexico, New York, Pennsylvania, and Washington.

The Bills propose State contract restrictions on overseas work and ban on State contracts with foreign call centres. The Unctad report said that while it might be tempting to hold back offshoring to avoid adjustment costs, this would be short-sighted politically and economically.

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`34 US States for anti-offshoring law'