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US opposed to restrictions on outsourcing
Thursday, June 12 2003 22:28 Hrs (IST)

Washington: The US is opposed and trying to resist restrictions on outsourcing of call centres and IT services as proposed by some American states, according to US Trade Representative Robert Zoellick.

Zoellick, at an in intensive three-hour session with Commerce Minister Arun Jaitley in Washington on June 12, told Jaitley the Federal government's stand on restrictions on outsourcing as proposed by New Jersey and four or five other States.

Jaitley informed Zoellick about Indian "concerns and sensitivities" at the level of both public and political opinion. India feels that such restrictions are "completely contrary to the spirit of market access," Jaitley said.

Jaitley also raised with Zoellick what is technically called restrictions on "the movement of natural persons" --the right of skilled and unskilled labour to move freely across borders to take advantage of job opportunities--pointing out that trade in services is as important as trade in goods, with India specially interested because it is becoming a "knowledge economy".

Jaitley, who had met Commerce Secretary Don Evans the previous day, also raised- with Zoellick several other issues of concern to India, which, if met, will benefit both India and the United States.

PTI

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