UPS CEO argues against protectionism

UPS chairman and CEO Scott Davis has told government and business leaders that the world won’t get out of the recession without reliance on global trade and that protectionism is “the worst response at the worst time”.

UPS chairman and CEO Scott Davis has told government and business leaders that the world won’t get out of the recession without reliance on global trade and that protectionism is “the worst response at the worst time”.

“As many as 57m Americans are working for companies engaged in global trade,” Davis said, at the Detroit Economic Club’s National Summit. “One in every five manufacturing jobs is linked to exports of goods and services.”

But Davis also noted the world must address several issues revolving around global trade. This includes the creation of a system of trade that not only is fair and rational but compassionate; deploying technology to reduce the friction that slows down the flow of commerce; and moving immediately to rebuild transportation infrastructures, he said.

“Trade is a major force for good, for growth and for jobs,” Davis said. “The threats are from both economic turmoil and the protectionist impulses it drives. We must argue that protectionism is the worst response at the worst time. We can’t let political expediency cloud global reality.”

He called on countries to improve their response to workers displaced by global trade.

“We are going to have to pay more attention to those displaced,” Davis said. “I see a very encouraging step in that direction with the return of the expired Trade Adjustment Assistance Act as part of the stimulus package. With this we can reposition the American work force and give our workers the skills to stay in the global game.”