Chamber Seeks Informed Debate on Trade and Jobs; Outsourcing Report Cites Dangers of Restrictive Proposals.

Business Editors/Political Writers

WASHINGTON--(BUSINESS WIRE)--April 14, 2004

A new report from the United States Chamber of Commerce found little hard data to support claims of an impending exodus of U.S. jobs overseas and called fears about outsourcing misplaced. The Chamber report says critics of outsourcing often overlook the benefits - and the jobs created here - when foreign firms open operations in the U.S.

"American businesses are the most successful competitors in any market - and that success has generated a standard of living that is the envy of many others," said Thomas Donohue, Chamber President and CEO. "The alarms being sounded about the loss of jobs to foreign countries are motivated by political need rather than facts."

The U.S. Chamber, in a report to members of Congress and the administration, noted the significant benefits to the U.S. economy from foreign multinationals operating in the United States compared to the relatively small number of American jobs that are moved offshore. Further, the report outlines the substantial benefits from this country's leadership role in the worldwide economy.

"The American economy did not become a world leader in creating wealth, jobs and prosperity by clinging to the past," said Donohue. "Protectionism is a poor substitute for innovation."

State legislatures and the federal government are considering proposals that would punish U.S. multinational companies that outsource by denying them contracts or changing the tax code. Government market interference would stifle competition, drive up costs, and eliminate more jobs than are ever likely to be outsourced, according to the Chamber.

"Building a wall around this country by limiting business options is a failed economic model and a violation of our own trade agreements, which could start a trade war," said Donohue. "Political need cannot change economic reality."

The way to spur job creation here at home is by reducing indirect business costs - excessive and duplicate regulations; junk lawsuits; lingering tax and accounting uncertainties - and by expanding research and development initiatives, according to the Chamber.

The U.S. Chamber of Commerce is the world's largest business federation representing more than three million businesses and organizations of every size, sector and region.

The Chamber report, "Jobs, Trade, Sourcing, and the Future of the American Workforce," is online.

http://www.uschamber.com/media/pdfs/outsourcing.pdf