US against restrictions on outsourcing

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,” he said. He 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 met the commerce secretary Don Evans on Wednesday, also raised with Zoellick several other issues of concern to India, which, if met, will benefit both India and the US.

On the issue of anti-dumping on shrimp exports, Zoellick explained that any anti-dumping issue raised has to have 25 per cent of domestic manufacturers or producers supporting it for consideration by the commerce department, and the alliance has not got that 25 per cent support. India is now the largest exporter of shrimp to the United States but an alliance of southern state shrimpers want anti-dumping invoked against Indian imports even though 88 per cent of the shrimp consumed in the US is imported. Jaitley said India would like to export its world famous mangoes to the US, where at present they are barred (on the ground that they may bring pests into the US).

On social security payments, he requested that IT professionals who are given 3-year visas with the possibility of extension for another three years pay (their own contribution plus company contribution) over $500 million towards social security. At present anyone who is not a diplomat earning in the US has to pay social security but if the person does not put in 10 years under social security, there is no benefit.

Jaitley urged that Indian professionals whose contributions to social security are mandatory even though they do not benefit because they do not stay for 10 years, may be allowed to withdraw what they have paid, as is done in the case of some other countries. This matter has been under discussion inconclusively for several years. Also, India does expect from the developed world, particularly the US, a response that is encouraging in terms of movement of “natural persons” (professionals).