Corporate India wants Obama to remove protectionist measures
As US President Barack Obama prepares to land in India next week, corporates there want him to address protectionist measures, adopted by America in the last 18 months, which have hurt their business interests.world Updated: Oct 27, 2010 13:59 IST
As US President Barack Obama prepares to land in India next week, corporates there want him to address protectionist measures, adopted by America in the last 18 months, which have hurt their business interests.
Noting that in the last 2 years, there has been an "undeniable rise" in the protectionist tide arising from the US, deputy director of the Confederation of Indian Industry (CII) Kiran Pasricha said that protectionism has not been restricted to rhetoric alone.
"Whether it was the 'Buy America' provisions in the Recovery Act of 2009 that restricted the import of iron and steel or the Border Security Bill that doubled visa fees for...or Ohio State government's recent ban on off-shoring IT projects, (Indian) industry is watching and going through the adverse impact of such policies," she said.
Pasricha said CII hopes that Obama will recognise India as a true economic and strategic partner and acknowledge the contribution that Indian companies are making in the US.
"I hope, for long-term, mutual benefit, both countries will stay committed against protectionism in trade, investment and movement of skilled professionals," she added.
Meanwhile, a CII report, in run up to Obama visit, has also expressed concerns over growing signs of protectionism in the US economy as it is seen as closing in, in order to safeguard its economic well-being and prevent job losses.
It has said that from 2009 to 2010, various bills and clauses have been passed by the US Administration, which have irked global industry members and posed a threat of retaliatory trade wars.
Topping the list is the American Recovery and Reinvestment Act of February 2009, which requires that all the iron and steel for infrastructure projects be produced in US.
Since Iron & Steel rank among India's top exports to USA, CII has said that the country will be adversely affected as a result of this protectionist provision.
Besides, the Act also requires that the uniforms, used by employees managing security at all American airports, be made in America.
In Indian exports to the US, textiles rank second and account for over 21 per cent of all export commodities
CII has also said that India has attracted the second highest number of anti-dumping cases from the US after China and US has levied 20 anti-dumping cases on Indian goods during 2000-2009.
These cases have been found mainly in sectors like chemicals, iron and steel and processed and marine food. Indian shrimp exports have been facing tough times ever since anti-dumping duties were imposed, five years ago.
First Published: Oct 27, 2010 13:57 IST