UPS chairman and CEO, Scott Davis, yesterday criticised delays to US free trade deals withseveral emerging markets and called on US firms to focus more on exports to help boost the country’s
economy.He was speaking just days after a UPS-commissioned survey showed that high-tech companies arepessimistic that US President Obama’s target of doubling exports in the next five years can beachieved.
Davis, a member of the President’s Export Council, told the American Competitiveness Forum inAtlanta: “In my view, global trade is the quickest and surest way to accelerate global growth,create new jobs and improve living standards. We’ll have to regain prosperity the old fashionedway, not by household borrowing and spending but instead by earning it through innovation,increased production and aggressive marketing in other countries.”
More than 95% of the world’s potential customers are located outside the United States, the CEOtold the audience. “Frankly, given the massive scale of this world economy, I’m astonishedthat US businesses aren’t more vocal in demanding better access to this huge wave of globalconsumers.”
Davis expressed deep concern about Congress’ failure to approve negotiated trade agreements withSouth Korea, Columbia and Panama, which the US Chamber of Commerce says has cost the country some380,000 jobs at a time when there is 9.6% unemployment.
“In the halls of Congress, compelling arguments for trade get overwhelmed by noisy heatedattacks on globalisation,” Davis said, referring to recent mid-year election campaigns. “For theeconomy’s sake, we need to stop the foot dragging and move quickly on these pending deals.”
The UPS CEO also criticised recent “Buy America” provisions that block foreign firms frombidding on major contracts with the federal government. “These provisions put very important tradepartnerships at risk – an outright deal killer” for US companies seeking to sell internationally,he added.
Unilateral constraints on trade by the USA ultimately cost American businesses, Daviscontinued. He urged American businesses to “defeat the tyranny of protectionism” by promotingfree trade around the world.
