Outsourcing ban to figure in Indo-US talks

Doha round of pact unlikely in 2010, commerce secretary said

trithesh

Trithesh Nandan | September 13, 2010



The government has indicated that it will bring India's concerns over outsourcing bans and visa-fees hike to the table at the next round Indo-US meet in Washinton DC next week.

Commerce minister Anand Sharma will discuss these issues with US trade representative (USTR) Ron Kirk at a meeting of the joint trade policy forum in the US capital on September 21.

“They are sensitive to our concerns and have realised that is a problem and we are going to take it forward,” D K Mittal, additional secretary, ministry of commerce & industry told reporters at the sidelines of CII event on World Trade Organisation (WTO) talks.

India has already voiced its concerns over the recent Ohio outsourcing-ban and US president Barack Obama's remarks on outsourcing at the congressional election campaign in Ohio.

As the US is moving towards increased protectionism, India is also examining whether there is any violation of the WTO agreement on services. “The G20 leaders decided that we should not take up protectionism. But the fact remains that each country is free to take measures which are compliant with the WTO rules measure. Questions arise  only if any decision taken by any country is not per WTO rules. The first method is to discuss things with them,” Mittal said.   

However, Indian IT industry doesn't feel threatened by the Ohio ban as India doesn’t get much business out of the state but the trend is very disturbing. "We hope that the measures that government of India is taking would bring to the notice of the US government,” said Som Mittal, President Nasscom.

“Nasscom hopes the outsourcing ban is not extended to other states and that current government contracts should not be re-priced,” commented Mittal. 

The hike in H-1B and L1 visa fee hikes are violating of the  WTO norms, India maintains. Sharma had written to USTR early this month saying that the visa fee hike would cost Indian firms an additional $200 million a year, making them less competitive.

However, there is also indication that Doha pact will not be possible this year. India also blamed Washington for not advancing the WTO rounds of talks. “Doha Round of Talks at the WTO is unlikely to happen in 2010 because of unwillingness of US to conclude the deal,” said Dr. Rahul Khullar, Secretary, Ministry of Commerce & Industry.

He also said that there would be no major changes in India’s position at the WTO, including on issues like compulsory participation on sectoral negotiations. 

US president Barack Obama is likely to visit India from 9 to 11 November this year and India hopes that Washington should remove a slew of irritants that have cropped up in the last one month.

In a run up to the high level meeting between India and the US, the officials are meeting in next few days to lay out agenda. The Foreign Secretary Nirupama Rao is visiting to the US next week and Defence Minister A.K. Antony later this month to Washington DC.
 

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