The Hindu : U.S. resolution against spirit of free trade: BJP

Online edition of India's National Newspaper
Sunday, Jan 25, 2004

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U.S. resolution against spirit of free trade: BJP

By Our Special Correspondent

NEW DELHI, JAN. 24. The Bharatiya Janata Party today termed the resolution by the United States' Senate forbidding outsourcing of government contracts to companies outside the U.S. "against the spirit of free trade."

The party spokesperson, Prakash Javadekar, said that in the long run, free global trade can only help consumers, whether in India or the U.S, even if in the short term, outsourcing seems to create winners and losers.

"We hope there will be due deliberation and discussion in the U.S. on this... in the long run it is a losing proposition even for the U.S. and, certainly, it is against the spirit of free trade," Mr. Javadekar said, adding that he felt it was the result of "American election year compulsion."

He said that unlike some Southeast Asian and South Asian economies, India was not wholly dependent on American demand. While in some countries, exports accounted for some 60 per cent of their total GDP, in India they accounted for 10 per cent of the GDP.

"Our economy is strong. It is growing in all sectors — agriculture, industry, manufacturing and services. The Senate decision will not have much of an impact for it places restrictions on outsourcing only on government contracts," he said.

He hoped the Information Technology industry in India would take this as a challenge and surge ahead in European and Afro-Asian markets. The party hoped that the issue would be resolved amicably and that "free trade will win."

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