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CEO Interview: Scott Davis of United Parcel Service

Free Trade, Freer Growth Scott DavisChairman and CEO, United Parcel Service For us, the biggest issue is the same as …

Free Trade, Freer Growth

Scott Davis
Chairman and CEO, United Parcel Service

For us, the biggest issue is the same as last year and the year before: global trade. Whenever you have a crisis, it’s natural for politicians to turn to protectionism, and that is still a concern. We’re a big proponent of free and open trade for the U.S. to compete in a global economy; in the U.S. we move 6 percent of the GDP every day in trucks and planes; and globally, it’s 2 percent.

Another huge issue is that, in the U.S. right now, we need to provide public-policy certainty to small business. We serve more than two million small-business customers in the U.S. alone, and a lot of owners have been sitting on their hands waiting for a better view of the rules of the road. This causes people not to hire employees as quickly. And when it comes to capital gains taxes, right now isn’t a good time to raise capital gains rates when you’re trying to get businesspeople to invest. We will see a similar environment next year to 2010. We see the U.S. economy continuing to grow at a moderate pace, probably below its potential. I don’t see a double-dip recession, just slower growth—and not enough to increase employment. Our company will grow a little faster than the economy. The strongest growth globally will be in Asia.

United Parcel Service, a $48 billion company headquartered in Atlanta, is the world’s largest package-delivery service.

About Dale Buss

Dale Buss
Dale Buss is a long-time contributor to Chief Executive, Forbes, The Wall Street Journal and other top-flight business publications. He lives in Michigan.