UPS Chief Operating Officer David Abney has praised Canada for actively engaging in global tradeto boost its economy and criticised the USA for not exporting enough.
Addressing the Economic Club of Canada in Toronto yesterday, Abney referred to the new UPSsurvey on trade showing that Canadian business leaders “are optimistic and outwardly focused.”
“Canadians … are ready and eager to compete in a global economy with your eyes fixed farbeyond your traditional trading partners in the States,” he said.”What does this mean for youreconomy? It’s growing and you’re creating jobs. There’s a lesson for the United States.”
Abney further said it had taken several years for Canadian business leaders to reach the pointof looking beyond Canada and the U.S. for commercial growth with the country now reaping thebenefits of recognising the emergence of “the new consumers”. They have emerged with thedevelopment of middle classes in Asian and Latin American countries.
“These consumers have two things that any growing business wants to see – discretionary incomeand a thirst for spending,” he stated.
Abney stressed the importance of attracting these customers especially in view of the differentpace at which the developed world and emerging markets are growing. According to the InternationalMonetary Fund, growth in emerging economies is expected to reach 5.75% this year, which is nearlyfour times greater than the 1.5% expected of advanced economies.
The UPS executive also praised the Canadian government leaders who have secured six free tradeagreements in the last five years, most of them in South and Central America and Europe. “Lookingahead, Canada is negotiating free trade agreements with India, Japan, the European Union, SouthKorea, Singapore and others. The stakes are enormous.”
“There is much that could be done to open the U.S.-Canada border more broadly and reducefriction in the movement of goods and services driving economic growth in both countries,” hestressed.
He suggested using The Transpacific Partnership (TPP) negotiations to modernise trade rulesacross US borders with both Mexico and Canada. He considered it an encouraging move by the USA toadd Mexico and potentially Canada to those negotiations, which currently include ninecountries.
“NAFTA was based on old trade paradigms that no longer reflect the realities of trade today.Including Mexico and Canada in the TPP is the right way to ensure that we have a modern tradeagreement in place governing the flow of goods and services across our borders.”
He highlighted the potential of global trade for the USA implying that boosting exports wouldbenefit the national economy. “That result would be good not just for the United States, but alsoCanada and the rest of the world.”
