Protectionism no way to counter offshoring, Bush says

IDG News Service - President George Bush today ruled out protectionist measures by the U.S. to counter the loss of jobs in the country because of offshore outsourcing.

"We don't fear competition," said Bush, addressing students at a business school in Hyderabad, India. People do lose jobs as a result of globalization, and it is painful for those who lose jobs, but protectionism would not be the right way for the U.S. government to respond, he said.

Globalization provides great opportunities, and the 300-million-strong middle class in India provides a classic opportunity for American farmers, entrepreneurs and small businesses, Bush said.

A large number of U.S. technology companies, including Microsoft Corp., Oracle Corp., Hewlett-Packard Co. and IBM, have set up software development, support and business process outsourcing operations in India.

India's software and services exports are estimated to grow by 32% to $23.4 billion in the fiscal year that ends March 31, according to data released last month by the National Association of Software and Service Companies (Nasscom) in Delhi. The country is on track to achieve $60 billion in exports by 2010, Nasscom said.

About 70% of the country's software and services exports are to the U.S., according to Nasscom.

A number of trade organizations in the U.S. have been protesting the loss of jobs in the U.S., and this was a key item of the campaign by 2004 Democratic presidential nominee Sen. John Kerry (D-Mass.). The Washington Alliance of Technology Workers (WashTech) in Seattle, for example, objects to outsourcing of jobs to India or any increase in H-1B visas for workers from India coming to the U.S.

In a news conference yesterday in Delhi, Bush said he would like more H-1B visas to be issued to Indian engineers, scientists and physicists. The current H-1B visa limit of 65,000 a year has proved inadequate for India's outsourcing industry, according to the industry.

Reprinted with permission from

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