The Hindu : Liberalise more aggressively, U.S. tells India

Online edition of India's National Newspaper
Tuesday, Feb 03, 2004

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Liberalise more aggressively, U.S. tells India

By Sandeep Dikshit

NEW DELHI, FEB. 2. Reacting to the disappointment to the American curbs on outsourcing of jobs to countries such as India, a top United States official today asked the country to liberalise more aggressively.

While the U.S. appreciated the steps taken so far by India to open its markets, the U.S. official indicated that Washington expected a greater convergence of views and actions from New Delhi.

The most important step India can take to counter efforts to restrict outsourcing is to continue to open its markets in return, the U.S. Charge d'Affaires, Robert Blake, told newsmen here.

From the perspective of the Bush administration, outsourcing helps American companies to improve competitiveness and profitability and offers U.S. consumers lower cost, high quality service.

"But the commit to and benefits of trade must be reciprocal. To succeed, trade must be a two-way street," Mr. Blake said.

At the same time, he appreciated the steps taken by New Delhi. "The Government of India, in the last month, has taken some important steps in this direction. The tariff, tax and investment liberalisation announced by the Finance Minister is a welcome step."

Mr. Blake also wanted India to shed its confrontationist attitude at multilateral trade talks.

"The U.S. and India also need to work together in the Doha Round and elsewhere to identify ways to open new markets rather than close those that are already open. India can help in this task by accelerating its programme of trade liberalisation and by helping build positive momentum in the Doha Round talks and setting ambitious goals for new commitments."

Mr. Blake stressed that one of the signs of strong bilateral ties was the ability to manage differences in a business-like manner without rancour.

Indo-U.S. talks on Iraq were a good example and the problems on outsourcing could be sorted out in a similar manner.He took a positive view of Indo-U.S. economic ties and pointed out that U.S. is India's largest trade partner and bilateral trade grew by 13 per cent in 2003. "Nevertheless, our bilateral trade gap expanded," he conceded.

He highlighted the growing strategic partnership between the U.S. and India and pointed out that this growing partnership was recently reinforced by the statements by the U.S. President, George W. Bush, and the Prime Minister, Atal Bihari Vajpayee, on the next steps in strategic partnership between the U.S. and India in the areas of high technology trade, civil, nuclear and space cooperation and missile defence.

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