“Buy American” is a Deal Killer

Provisions that block foreign firms from bidding on major contracts with the federal government will stifle trade, says UPS

<p>The Americas Competitiveness Forum (ACF) is the most relevant event for leaders from the 34 countries in the Western Hemisphere to exchange knowledge on the issues and challenges facing the world today. <i>Pictured: Scott Davis, UPS’s chairman and CEO, who spoke at the ACF in Atlanta.</i></p>

The Americas Competitiveness Forum (ACF) is the most relevant event for leaders from the 34 countries in the Western Hemisphere to exchange knowledge on the issues and challenges facing the world today. Pictured: Scott Davis, UPS’s chairman and CEO, who spoke at the ACF in Atlanta.

in the News

State of Logistics 2016: Pursue mutual benefit
Despite mixed Q2 results, transportation & logistics deal making prospects look bright
Managing Global Transportation: How NVOCCs can operate more profitably
STB rolls out proposed reciprocal switching regulations
Climate Change Bringing More Rain Will Complicate Supply Chains
More News
By ·

A boost in exports is the catalyst that the U.S. 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 yesterday at the American Competitiveness Forum in Atlanta, Georgia.

“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 percent 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 U.S. 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 U.S. Chamber of Commerce says has cost the U.S. some 380,000 jobs at a time when there is 9.6 percent unemployment.

“In the halls of Congress, compelling arguments for trade get overwhelmed by noisy heated attacks on globalization,” 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 criticized 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 U.S. companies seeking to sell internationally, he added.

Unilateral constraints on trade by the U.S. ultimately cost American businesses, Davis continued.

Davis urged American businesses to “defeat the tyranny of protectionism” by promoting free trade barriers.

For more Logistics Management coverage on UPS click here.

 


About the Author

Patrick Burnson, Executive Editor
Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review magazines and web sites. Patrick is a widely-published writer and editor who has spent most of his career covering international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. You can reach him directly at [email protected]

Subscribe to Logistics Management Magazine!

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your entire logistics operation.
Start your FREE subscription today!

Article Topics

Exports · Global Trade · Imports · Trade · UPS · All Topics
Latest Whitepaper
Managing Global Transportation: How NVOCCs can operate more profitably
Global transportation isn’t getting any easier to manage. With new rules and regulations to learn, new compliance requirements to adhere to, and new customers and business partners to onboard, navigating the complexities of the global market can be difficult for any company. To fully leverage their global supply chains, firms need a robust, global transportation management system that helps them navigate this ever-changing environment.
Download Today!
From the July 2016 Issue
While it’s currently a shippers market, the authors of this year’s report contend that we’ve entered a “period of transition” that will usher in a realignment of capacity, lower inventories, economic growth and “moderately higher” rates. It’s time to tighten the ties that bind.
2016 State of Logistics: Third-party logistics
2016 State of Logistics: Ocean freight
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!
Latest Webcast
Getting the most out of your 3PL relationship
Join Evan Armstrong, president of Armstrong & Associates, as he explains how creating a balanced portfolio of "Top 50" global and domestic partners can maximize efficiency and mitigate risk.
Register Today!
EDITORS' PICKS
Regional ports concentrate on growth and connectivity
With the Panama Canal expansion complete, ocean cargo gateways in the Caribbean are investing to...
Digital Reality Check
Just how close are we to the ideal digital supply network? Not as close as we might like to think....

Top 25 ports: West Coast continues to dominate
The Panama Canal expansion is set for late June and may soon be attracting more inbound vessel calls...
Port of Oakland launches smart phone apps for harbor truckers
Innovation uses Bluetooth, GPS to measure how long drivers wait for cargo