Pranab Mukherjee: Protectionism to Hurt Both U.S. and India

Monday, 30 January 2012, 23:07 IST
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Chicago: Worried over the adverse fallout of protectionism, Pranab Mukherjee, Finance Minister, said if the U.S. stops outsourcing jobs to India, profitability of both the economies will be hurt. "If U.S. stops outsourcing jobs from India to some extent profitability of the economies will be affected," Mukherjee told reporters here. Speaking at the end of a two-day visit, he said that nations were free to adopt policies that suited their requirements but the policies should not lead to protectionism. Moreover, he stressed, the World Trade Organization (WTO) too is working to free flow of goods and services across the globe. Barack Obama, U.S. President, had earlier said that the companies which provide jobs at home would get bigger tax breaks but those outsourcing work would have to pay more. Mukherjee, however, pitched for uninterrupted flow of good and services and removal of tariff and non-tariff barriers arguing that these measures have yielded desired results for all. "Protectionism ultimately does not help the country that resorts to it", he said, adding "there is merit in giving up protectionism and I do hope the countries will not resort to it." Mukherjee attributed the high growth in the past to liberalization of international trade by reduction in tariffs.
Source: PTI