Donohue Urges Congress To Resist Outsourcing Legislation

By Zach Patton, National Journal

The outsourcing of U.S. jobs has become a hot-button issue in this election year, but Congress and the Bush administration should refrain from any measures that would restrict companies' ability to move jobs overseas, U.S. Chamber of Commerce President Thomas Donohue said Monday.

Donohue called on lawmakers to defeat proposals aimed at preventing outsourcing, such as denying federal contracts to companies that outsource jobs. Although he said he expects the House or Senate to pass some anti-outsourcing legislation this year, "It isn't going anywhere."

Donohue said he is more concerned about what President Bush may do in response to critics who claim he has done nothing to stem the flow of jobs to other countries. "My major work is not on possible legislation," Donohue said. "It's on what the administration would or could do to demonstrate its bona fides, to show that it's protecting jobs."

Bush faces intense political pressure to support outsourcing restrictions, Donohue said, but bowing to those pressures could exacerbate U.S. economic losses.

"When people are attacked, they respond. But they'd better not respond in a way that makes it worse," Donohue said. "We know you're running for election, but don't screw this up while you are."

Legislating against outsourcing could spur detrimental retaliatory efforts from other countries, Donohue said. He encouraged Bush and Congress to consider the long-term effects of such legislation. "We've taken a very short view on this so far," Donohue said.

Donohue also announced Monday that the Chamber is stepping up its partnership with the Indian government and private companies there. Donohue traveled last week to India last week, where he met with senior government and private-sector leaders, he said.

He said he would focus on enabling small- and medium-sized U.S. companies to enter the Indian market and on increasing India's purchases of U.S. products. Over the next year, the Chamber will organize trade missions, video conferences, seminars and shared Web sites to accelerate trade.

Also, Donohue said, the Chamber will work with the Federation of Indian Chambers of Commerce and Industry to study, analyze and fight counterfeiting, intellectual property theft and piracy.