US govt has 'wrongheaded' ideas: protection and visa restrictions

New Delhi, Apr 13 : US Chamber of Commerce President and CEO Thomas J Donohue today argued that the United States government must desist from pursuing some ''wrongheaded ideas'' like protectionism and imposing further restrictions on immigration adding that the cobwebs need to be cleared relating to the Indo-US civil nuclear deal so that commercial business can start.

''We should make the free flow of capital, people, ideas and products between India and the United States a model for the rest of the world,'' Mr Donohue said in an address to the Indian business community.

''There has never been a better time and opportunity,'' he said.

The event was organised by Confederation of Indian Industry (CII) and in the Chair was Civil Aviation Minister Praful Patel.

''We have fallen short in the effort to modernise our immigration and visa policies, and some legislators are proposing even more restrictions on visas,'' he said.

Talking about the nuclear liability Bill that was withdrawn by the UPA government, Mr Donohue said, ''legislation is badly needed here that is fair, reasonable and which lives up to past commitments.

This is not only important to foreign investors, it is critical to any Indian company that hopes to be part of a major expansion of clean, safe nuclear energy''.

He said it was incumbent on the United States government to streamline export control rules dating from the Cold War that inhibits transfer of technology.

The Indian government, on the other hand, must lift FDI caps in defence, insurance and other key sectors, remove the ten per cent voting rights cap for investment in banks, consummate a Bilateral Investment Treaty and modernise regulations in mining and other realms of energy, including power, reduce tariffs and taxes ranging from medical technology, internet services, transportation equipment to aviation technology.

Mr Donohue called for India adopting a modern Postal Law that attracts more investment from the world class express delivering and logistics companies.

''We have viable, clean alternatives available already. We don't need to invent nuclear energy in the United States. We already have it and need more of it. So does India. So let's get busy making the most out our civilian nuclear agreement. This was the historic achievement,'' he said.

Taking about taking the Indo-US Partnership to the next level, Mr Donohue lauded India's Open Skies agreement. Mr Donohue said American business companies on the country's bold plans to expand India's entire aviation network.

''There is no lack of desire on the part of American companies from many sectors and all sizes to do business in India,'' he said.

''I am deeply concerned that America's capital markets are losing their competitive edge. I am not convinced that our government and regulators are proposing the right solutions to strengthen our markets in the wake of the global financial collapse. In fact, much of what is being proposed by our Congress will make things worse,'' Mr Donohue said.

''We are also very concerned that the United States is piling up unsustainable debt and will likely increase taxes substantially in coming years. We are pressing the government to control spending, avoid punitive taxes, and help business expand exports policies that will help put our fiscal house in order,'' he said.

''All of us in business must also be concerned about rising levels of protectionism, in the United States and around the world. Our elected officials have passed 'Buy American' provisions that repel investment and anger even our closest trading partners,'' he said.

He lamented that the Congress has let three excellent trade agreements with Korea, Colombia and Panama languish.