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India Outsourcers Find Back Door in Canada
securitas writes "Metro International newspapers Toronto edition reports that more Indian companies are opening back doors into the United States by setting up shop in Canada. The issue of outsourcing, offshoring and nearshoring has become a hot issue, with the 2004 presidential election less than a week away. Candidate John Kerry has said he will close the tax loophole that makes it advantageous to outsource call centers."
He could of introduced plenty of bills supporting his current election platform as a senator, why didn't he? What makes you think he'll do it now if elected president? Just asking.
Why doesn't anyone ever talk about all the jobs being insourced? The real "Benedict Arnold" companies are those that move their headquarters overseas -- in the form of a rented office in Bermuda -- to avoid paying US taxes, not US-based companies with manufacturing centers in other countries. Those are the real tax cheats.
Bungo!
I think what we might be dealing with is fallout from the Free Trade Agreement with Canada whereby the Indian company sets up an office in Canada which then negotiates with the American company as a Canadian firm with all of the FTA related breaks but the work is actually carried out in India.
I'm sure the Canadians view this as pretty ironic given that a similar trick was used by the Americans to destroy the Canadian car industry vis using the two FTAs with Canada & Mexico to sell Mexican built cars to the Canadians as if they were American for the purposes of tarriffs.
And John Howard has just signed Australia up for an FTA with America - smart move John, we'll be thanking you for that one for the next 50 years. The only hope Australia's got IMHO is to sign a FTA with China & threaten America with mutually assured destruction if they try to play fast & loose with the terms of the contract. Note - first ever correct usage of the word "loose" in the history of slashdot
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