Scott Davis Chairman and Chief Executive Officer, UPS, USA
As an industry, express carriers and supply chain providers have a unique perspective into trade’s positive impact on growth and prosperity. Lowering tariffs does stimulate trade, but it pales in comparison to the economic growth seen when supply chain barriers to trade are reduced or eliminated. This study shows decreasing these barriers could increase world GDP six times more than merely eliminating tariffs.
To reduce barriers to trade, the global business community needs to be innovative and put forth best practices that can be coordinated among small and medium-sized businesses, as well as large multinationals throughout many industries. In tandem, governments need to prioritize investments and ensure collaboration across countries, benefitting consumers through lower costs and more efficient global supply chains.
Reducing these trade barriers, such as customs clearance delays, lack of standardized procedures and poor infrastructure, will not be easy to achieve. However, by recognizing that we are now a global market and focusing on the “whole of the supply chain”, we can collectively create a more stable global economy.
Trade, and in particular, breaking down barriers to trade, provides the type of positive stimulus that will benefit generations to come and serves as a path for further regional and multilateral economic cooperation.