K.P. NAYAR
Houston, Feb. 5: Lobbyists for outsourcing and H-1B visas have won the first round in their fight against potential policies of the Obama administration against such programmes that favour workers from India and other similarly placed countries.
Judd Gregg, who was nominated on Tuesday by President Barack Obama as his nominee for secretary of commerce, has favoured a complete elimination of any limits on H-1B visas which allow guest workers from abroad to be temporarily employed in the US.
A Republican who quit his Senate seat following his nomination, Gregg introduced legislation last year raising the limit on H-1B visas from 65,000 to 115,000. Gregg’s nomination comes even as Obama's pick for labour secretary, Hilda Solis is stuck in the Senate with opponents of big business blocking her confirmation over a range of her views, including her opposition to H-1B and outsourcing of American jobs.
Meanwhile, the US Senate yesterday voted to soften a “Buy American” clause in its $900 billion economic stimulus bill that would have affected the prospects of companies abroad that export to the US.
The Senate vote to soften the provision came after Obama expressed concern that it could trigger a global trade war with other countries blocking US goods from entering their markets.
Yesterday's amendment said the protectionist clause should be “applied in a manner consistent with US obligations under international agreements.”
While the softening of the provision will help Canada, Mexico, the EU and other US trade partners which have free trade agreements or similar pacts with Washington, it still leaves India out of any relief.
India has an extensive architecture for economic engagement with the US, but lacks any significant trade pacts that would protect it against protectionist US sentiment that is on the rise with the economic downturn.
Senator John McCain, who was the Republican presidential candidate last year, moved an amendment to altogether kill the “Buy American” clause, but that was defeated in the Senate by a vote of 65-31.
Coinciding with Gregg’s nomination as commerce secretary is the appointment of Diana Farrell as a member of Obama’s National Economic Council and deputy economic adviser to the President.
Prior to being tapped by the new administration, Farrell was director of the McKinsey Global Institute, which has argued on the basis of its research that outsourcing brings “substantial benefits” to the US.
The institute’s research has previously been a big weapon in the hands high tech industry here in support of the H-1B visa programme. Outsourcers and H-1B procurers in America were instantly delighted by Obama’s announcement that Gregg would be his commerce secretary.
The Business Software Alliance of America said the nominee “has the potential to be an outstanding secretary of commerce”.
Complimenting Gregg, the Information Technology Industry Council said “he has been a strong proponent of opening overseas markets to US exports, he backed a permanent R&D tax credit and has voted favourably on litigation reform”.
In his most recent public remarks on outsourcing and H-1B, the commerce secretary designate said: "It is not like we are taking jobs from Americans, which is what you hear from labour unions. We are actually creating jobs by bringing bright people into this country.”
http://www.telegraphindia.com/1090206/jsp/foreign/story_10493420.jsp Wonderful :sarcasm:
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