GE CEO: 'President Trump is right' on trade

pulse

May 5, 2017 8:25 PM

GE CEO Jeff Immelt shared his thoughts on the shortcomings of globalism, why protectionism is not the solution, and what U.S. companies need from Trump.

General Electric Co Chairman Jeff Immelt gestures as he answers a question during a news conference in New Delhi, India, September 21, 2015.

During an event at Georgetown University on Thursday, CEO of General Electric Jeff Immelt shared his thoughts on the shortcomings of globalism, why protectionism is not the solution, and what US companies need from the Trump administration.

Here are some of the highlights:

On the end of globalization:
What changed:
How did an ideal so connected to American influence and success become so demonized? In retrospect, there were key changes along the way."
China has changed the game: "
Globalists became too elite:
We made globalization its own political party. The 'party' saw globalization as a theory, rather than understanding the impact on normal people, or the critical investments needed to build competitiveness."
Trade deals weren't explained to the public properly:
ur government failed to convince people of the important role that trade plays in building US strength around the world. TPP, after all, was even more important geopolitically than it was economically."
On the Trump administration's trade stance:
Companies need to invest locally, tax reform is needed:
ur current policy favors foreign companies operating in the US over American companies operating abroad; and
favors American companies who import goods manufactured outside the US over companies that manufacture in the U.S. and export. In a country that wants to grow manufacturing jobs and exports, our tax system does the opposite."
The US must continue to shape the terms of trade:
Rather than withdrawing from trade deals, we should work to modernize and improve them. NAFTA presents an opportunity for the U.S. government to do just that. We have an opportunity to create an integrated North American energy bloc which could drive down costs and incentivize US manufacturing. And, with the right reforms, Mexico should be a huge market for American products."