US against protectionism, says Obama

US President Barack Obama on Monday said his country was against protectionism and would work with India to make global economic recovery strong and durable.

In his address to Members of Parliament, Obama said: "Together, we can resist the protectionism that stifles growth and innovation. The US remains - and will continue to remain - one of the most open economies in the world."

Seeking reciprocity to break trade and investment barriers, Obama said: "By opening markets and reducing barriers to foreign investment, India can realise its full economic potential as well."

Image: US President Barack Obama at a ceremonial procession with Vice President Mohd. Hamid Ansari, Speaker, Lok Sabha, Meira Kumar and Prime Minister Manmohan Singh, to address the joint session of Parliament.

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The Indian industry has been voicing concerns over protectionist measures such as hiking visa fee for IT professionals and ban on outsourcing on government business by some states in the US to protect jobs, while the US has been seeking greater access to India's financial, retail and other markets.

In a speech that was greeted with cheers several times by the MPs, Obama said: "As global partners, we can promote prosperity in both our countries... Together, we can create the high-tech, high-wage jobs of the future.

"As G-20 partners, we can make sure the global economic recovery is a strong and durable recovery," he said, adding the two nations are ready to implement civil nuclear agreement that will help meet India's growing energy needs and create thousands of jobs for both the US and India.

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Recalling the success of green revolution, which was implemented with help of the US in the sixties, Obama said America, being leader in agricultural research and productivity, will work with India again for a new "evergreen" revolution.

"The US is a leader in agricultural productivity and research. Now, as farmers and rural areas face the effects of climate change and drought, we will work together to spark a second, more sustainable Evergreen Revolution," Obama said.

On the sticky issue of Doha round of global trade negotiations, he said India and the US can strive for a global trade deal which is ambitious and balanced. However, he said the two countries should show the "courage" to make "compromises".

India and the US are on the opposite sides of the World Trade Organisation (WTO) negotiations for a trade opening deal. Differences revolve mainly around the demand by the developed countries to get market access in the developing countries like India, which want to protect its farmers.