Any move by Washington to solve the current economic crisis with protectionist restrictions on free trade would hamper the U.S. recovery, as well as harm freight and logistics companies, was stated by the CEO of the world’s largest transport company.
‘The future of the global economy depends upon a rational and open system of free trade,’ UPS Chairman and CEO Scott Davis, seen here, told a business audience at the U.S. Chamber of Commerce. ‘No argument against free trade can justify the negative impact to economic and human development that we would face without free trade. None.’
In fact, Davis said, the need to support more global trade ‘grows more urgent by the day.’ Every day UPS moves more than 13 million packages, whose value accounts for about 6% of U.S. Gross Domestic Product and 2% of the world’s GDP. UPS earned $3 billion on $51.5 billion revenue last year.
Davis admitted that UPS is biased in this case. As the second-largest U.S. private-sector employer with 425,000 employees, Davis admitted that UPS has ‘an obvious interest’ in increasing fair trade. More than half of UPS employees are members of the Teamsters, that union’s largest employer.
Labeling his company “the global conveyor belt for commerce,” Davis said the U.S. can have it both ways — both a leader in the world market place and a society that cares about those who may be displaced because of effects of globalization.
Logistics Management reported that Davis said, global trade can actually create U.S. jobs, citing UPS’s own experience. He said for every 40 new international packages UPS carries, it creates one new job. International cargo is UPS’s fastest-growing unit, increasing by more than 10% last year.
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