UPS chief: Free trade is solution to crisis

Global - Adopting protectionist policies may be a sensible strategy in this economic climate but it would probably do more harm than good, said a top UPS executive.

Addressing the US Chamber of Commerce, UPS CEO Scott Davis said the US and its trading partners would be making a grave mistake if they responded to the current economic situation by adopting protectionist measures to restrict free trade.

"The need to support global trade grows more urgent by the day," he said. "Global trade is one of the most important tools we have to help lift us out of the financial crisis. No argument against free trade can justify the negative impact to economic and human development."

Davis said while the advantages of free global trade are clear, the political perceptions of those advantages are not so clear. He urged business leaders to cooperate with President Obama's efforts to create a bi-partisan consensus on trade. He cited WTO estimates that cutting trade barriers across agriculture, manufacturing and services by one third would add US$613 billion to the world economy.

Removing barriers to trade will also result in job creation Davis said, tapping on UPS's own experience. "Each time add 40 new international packages in the US - in other words, 40 packages imported or exported by our customers - we create another US job somewhere in our system."

The CEO added that global trade resulted in a "better, safer, more hopeful and more prosperous world," and brought millions out of poverty.

"Many countries in Eastern Europe, Asia and Latin America are prosperous and stable societies in large measure because of their determination to be players ni a free and open global economy."