The Hindu : U.S. stand on outsourcing retaliatory, says Sinha

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

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National

U.S. stand on outsourcing retaliatory, says Sinha

NEW DELHI, FEB. 2. India tonight termed as ``retaliation'' the U.S. contention that restrictions would be imposed if India does not open up its markets.

``It smacks of retaliation that if you (India) don't open up, we (the U.S.) are going to impose restrictions. That is not the way to go about it,'' the External Affairs Minister, Yashwant Sinha, told reporters here.

On the U.S. seeking a commitment from India to open up its markets to ensure that trade is a two-way street in the wake of the recent controversy over outsourcing, Mr. Sinha said ``The U.S. has to realise that by outsourcing, the companies manage to remain competitive. So, it saves some jobs. If they don't outsource, they risk becoming not competitive.''

``This is where they have to realise their own interest''.

American business was realising this and that was why they were against U.S. laws, including the recent one restricting Government outsourcing to contractors who would do the work in the U.S. itself, thereby excluding India and other countries from getting sub-contracts.

The U.S. Charge d'Affaires, Robert Blake, earlier told reporters that Washington sought ``greater balance and greater liberalisation'' on India's part to ensure that U.S. investors had as many opportunities here as Indians had in the U.S.

The U.S. believed that free trade and open market brought benefits to all countries that committed to them.

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

PTI

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