Protect us from protection, industry leaders urge

DETROIT — America’s recovery is not going to be a result of economic nationalism.

In fact, in the opinion of Charles "Chip" McClure — CEO of truck components maker ArvinMeritor — a "buy America" policy might even "alienate our [America’s] allies in commerce."

"Innovation is a global process, not just because of costs," he said, but "the ability to tap into regional talent and to learn from customers in new markets."

McClure made the comments as part of a panel discussion on "Competitiveness in Manufacturing," which was part of a economic conference todaystrucking.com attended in Detroit called "The National Summit."

Other presenters with McClure were Citicorp CEO Vikrim Pandit, John Engler, the CEO of the American National Association of Manufacturers and Deborah Wince-Smith, the president of the Council of Competitiveness.

McCLure’s comments were echoed time and again by fellow panelists at the National Summit, including his co-panelist Engler, a former Michigan governor.

The Consensus is in: Restrictions on
foreign trade don’t protect Americans,
leaders of large US companies insist

Engler told the audience that the American government might also look at mirroring Ottawa, which has just opened up free-trade discussions with the European Union.

The buy-American policy, Engler said, is "particularly painful" in a place like Michigan, where the industries on either side of the river are completely enmeshed.

UPS Inc. Chairman & CEO D. Scott Davis reiterated the anti-protectionist theme. In a seminar that included Jayson Myers, the president of the Canadian Manufacturers & Exporters

American prosperity is completely dependent on global trade, which Davis called a "positive force" at a time when "we are operating without a map and without precedent."

"Every 40 packages that go into and out of the U.S., creates one American job," he continued. "The threats are from both economic turmoil and the protectionist impulses it drives. We must argue that protectionism is the worst response at the worst time. We can’t let political expediency cloud global reality."

He also encouraged the implementation of technology to eliminate the delays that come with paper customs forms. "Global competitive advantage means the right product at the right place, at the right time and at the right cost," he said.

Arvin’s McClure agrees wholeheartedly. Restoring America’s flailing manufacturing sector depends more on creating an environment that nurtures innovation, and that means eliminating roadblocks. Especially things like "Card Check," or as its Orwellianly named by legislative sponsors, the Employee Free Choice Act. 

Card Check is a pro-union proposal that would enable American employees to organize a union if a majority of employees sign authorization cards, taking away the ability of businesses to require a secret-ballot election.

According to McClure, "Card Check will significantly impact the cost base for manufacturers and it could eliminate up to 600,000 jobs in an already weakened economy." 


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