Exports are key, says UPS boss
A boost in exports is the catalyst that the US economy needs to rebound, according to Scott Davis, UPS’s chairman and CEO. “In my view, global trade is the quickest and surest way to accelerate global growth, create new jobs and improve living standards,” Davis said in remarks at the American Competitiveness Forum.
“We’ll have to regain prosperity the old fashioned way, 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 CEO told the audience. “Frankly, given the massive scale of this world economy, I’m astonished that US businesses aren’t more vocal in demanding better access to this huge wave of global consumers.”
Davis, a member of the President’s Export Council, expressed deep concern about Congress’ failure to approve negotiated trade agreements with South Korea, Columbia and Panama, which the US Chamber of Commerce says has cost the US some 380,000 jobs at a time when there is 9.6% unemployment.
“In the halls of Congress, compelling arguments for trade get overwhelmed by noisy heated attacks on globalisation,” Davis said, referring to recent mid-year election campaigns. “For the economy’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 from bidding on major contracts with the federal government. “These provisions put very important trade partnerships at risk – an outright deal killer” for US companies seeking to sell internationally, he added.
Unilateral constraints on trade by the US ultimately cost American businesses, Davis continued.
Davis urged American businesses to “defeat the tyranny of protectionism” by promoting free trade around the world.
