FedEx CEO: Trump should reform, not reject trade agreements

FedEx Express Chairman and CEO Fred Smith said the President-elect should seek changes in the Trans-Pacific Partnership agreement negotiated among the United States and 11 other countries, rather than outright reject it.

   FedEx Express Chairman and CEO Fred Smith said President-elect Donald Trump should seek changes in the Trans-Pacific Partnership agreement (TPP) negotiated among the U.S. and eleven other countries, rather than outright reject it.
   “We urge the Trump administration to put its stamp on a revised TPP by addressing any concerns it sees, and making any additional improvements to promote trade, rather than restrict it,” he said during a speech last week before the U.S. Council on Competitiveness’ National Competitiveness Forum.
   Similarly, he advised that the North American Free Trade Agreement (NAFTA) with Mexico and Canada be updated and strengthened.
   Withdrawal from the agreement “would have massive economic repercussions,” Smith said.
   Global trade is a path to jobs and economic growth, Smith contended.
   “Trade has
made America great, and expanding trade has been a bi-partisan pursuit
for over 80 years,” he said. “The failure to continue to do so would be a severe
mistake with enormous consequences for America and the world.
   “Trade equals more markets and greater opportunities for U.S. companies, especially small and medium businesses, which comprise about 97 percent of U.S. exporters. The U.S. wins when we enter free trade agreements.”
   FedEx said that according to the Department of Commerce, the 20 countries that the U.S. has free trade agreements with buy nearly half of the nation’s exports. “The U.S. enjoys a surplus with those trading partners in manufacturing, and has global surpluses in services and agriculture,” Smith said.
    According to the U.S. Trade Representative, the 20 countries are: Australia, Bahrain, Canada, Chile, Colombia, Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras, Israel, Jordan, Korea, Mexico, Morocco, Nicaragua, Oman, Panama, Peru and Singapore.
    Smith said on a per-capita basis, these 20 countries buy 13 times as many U.S. goods and services as other countries.
    “This is because free trade agreements remove barriers to our goods and services and make our exports more competitive,” Smith said. “These free trade agreements are the solution to trade deficits, not the problem.”