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Former US trade representative calls for more open market
New Delhi, Apr 05: Former US trade representative Carla Hilla of the super 301 fame is still passionate about opening up Indian market for US goods and services. Today again Hills said India should open up its markets for US companies to soften the backlash against offshoring.
New Delhi, Apr 05: Former US trade representative Carla Hilla of the super 301 fame is still passionate about opening up Indian market for US goods and services. Today again Hills said India should open up its markets for US companies to soften the backlash against offshoring.
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Former US trade representative calls for more open market
New Delhi, Apr 05: Former US trade representative Carla Hilla of the super 301 fame is still passionate about opening up Indian market for us goods and services. Today again Hills said India should open up its markets for US companies to soften the backlash against offshoring.
Conceding that outsourcing and offshoring is good for US economy, she said we have to get the message across to Americans that India is opening up its markets for its goods and services.
Hills, who was US trade representative between 1998 and 1993 and was moving force behind measures like super 301 to eliminate barriers to us goods in economies like India, said that opening of the economy would help India too.
''By reducing tariff and regulatory barriers foreign direct investment (FDI) gets a boost and economic activity is generated,'' she said. Hills, while addressing a seminar on outsourcing organised by Confederation of Indian Industry (CII), said that backlash against outsourcing in US was serious.
She did not rule out more political reaction to outsourcing. ''At last count 15 states were contemplating legislative action against outsourcing. The state of Indiana, which scrapped 15 million dollar Tata Consultancy Services (TCS) contract, is now paying eight million more to get the same job done,'' Hills informed.
''The backlash against outsourcing and offshoring will not die down after elections. Barring outsourcing would hurt US economy but opening up of markets for US goods will to an extent take care of the backlash. As jobs move US government would to take have the responsibility to retrain workers,'' she said
CII president Anand Mahindra, who opened the debate, said that India was ahead of schedule so far as bringing down tariffs is concerned. ''If we are made whipping boys there will be an internal reaction in India that can retard the process of opening up of Indian economy,'' Mahindra said.
Norman J Ornstein, resident scholar, American enterprise institute, said : ''The voices against job loss is us this time are more harsh. Jobs were lost to Mexico after signing of north America free trade area (NAFTA) but they were low paying manufacturing jobs. This time white collar jobs are at risk and this class is more active politically.''
Ornstein also blamed the internal policies in America like shifting of tax base from saving and investment to payroll as one of the reasons for jobs moving out.
''During tough times jobs moved because companies needed to cut jobs. Now as the recovery sets in the new jobs that are being created are part-time jobs. Even the regular jobs are being made part-time as payroll tax burden on companies increase. By offshoring they also cuts down on benefits they have to pay to the employees,'' he said.
''We have to adopt a constructive approach to the issue of outsourcing and I am hopeful that the debate will be kept within the bounds of reason,'' Ornstein said.
Bureau Report
New Delhi, Apr 05: Former US trade representative Carla Hilla of the super 301 fame is still passionate about opening up Indian market for us goods and services. Today again Hills said India should open up its markets for US companies to soften the backlash against offshoring.
Conceding that outsourcing and offshoring is good for US economy, she said we have to get the message across to Americans that India is opening up its markets for its goods and services.
Hills, who was US trade representative between 1998 and 1993 and was moving force behind measures like super 301 to eliminate barriers to us goods in economies like India, said that opening of the economy would help India too.
''By reducing tariff and regulatory barriers foreign direct investment (FDI) gets a boost and economic activity is generated,'' she said. Hills, while addressing a seminar on outsourcing organised by Confederation of Indian Industry (CII), said that backlash against outsourcing in US was serious.
She did not rule out more political reaction to outsourcing. ''At last count 15 states were contemplating legislative action against outsourcing. The state of Indiana, which scrapped 15 million dollar Tata Consultancy Services (TCS) contract, is now paying eight million more to get the same job done,'' Hills informed.
''The backlash against outsourcing and offshoring will not die down after elections. Barring outsourcing would hurt US economy but opening up of markets for US goods will to an extent take care of the backlash. As jobs move US government would to take have the responsibility to retrain workers,'' she said
CII president Anand Mahindra, who opened the debate, said that India was ahead of schedule so far as bringing down tariffs is concerned. ''If we are made whipping boys there will be an internal reaction in India that can retard the process of opening up of Indian economy,'' Mahindra said.
Norman J Ornstein, resident scholar, American enterprise institute, said : ''The voices against job loss is us this time are more harsh. Jobs were lost to Mexico after signing of north America free trade area (NAFTA) but they were low paying manufacturing jobs. This time white collar jobs are at risk and this class is more active politically.''
Ornstein also blamed the internal policies in America like shifting of tax base from saving and investment to payroll as one of the reasons for jobs moving out.
''During tough times jobs moved because companies needed to cut jobs. Now as the recovery sets in the new jobs that are being created are part-time jobs. Even the regular jobs are being made part-time as payroll tax burden on companies increase. By offshoring they also cuts down on benefits they have to pay to the employees,'' he said.
''We have to adopt a constructive approach to the issue of outsourcing and I am hopeful that the debate will be kept within the bounds of reason,'' Ornstein said.
Bureau Report