UPS: Pacific trade deal is ‘vital’ to the economy

Shipping giant also posted increased Q2 profits.

As Sandy Springs-based UPS reported a $1.27 billion profit for the second quarter, its CEO weighed in on the controversial Trans-Pacific Partnership trade deal.

“We are mindful of the current political commentary on trade,” UPS chief executive David Abney said during an investor conference call Friday. “Trade legislation to accelerate economic expansion like the Trans-Pacific Partnership is vital to the health of the U.S. economy. We encourage our political leaders to support and pass pending trade legislation.”

TPP, as the trade deal is known, has been criticized by candidates from both parties at political conventions in the last two weeks. President Barack Obama pushed for the deal between 12 countries to eliminate trade barriers and tariffs, but Congress has yet to ratify it. Opponents worry the deal would cost American jobs.

UPS has been a long-time advocate for free trade and a TPP supporter.

UPS said following ratification of trade deals, it typically sees about a 20 percent increase of U.S. exports in its network to the countries involved.

“These free trade agreements allow small- and medium- size enterprises to start competing with other companies, and they’re exporting more,” said the company’s chief financial officer Richard Peretz.

UPS said quarterly results were solid “despite continued uncertainty in the macro economy.”

The shipping giant’s profit was up 3.2 percent from the same period a year earlier, when it earned $1.23 billion.

UPS said lower fuel surcharge rates reduced its revenue per package growth.

The company had $14.6 billion in revenue in the quarter, up 3.8 percent from a year earlier. Operating expenses also rose 3.8 percent.

DAVID GOLDMAN / ASSOCIATED PRESS 2014 A UPS truck makes a delivery. CEO David Abney encouraged U.S. lawmakers to support and pass the Trans-Pacific Partnership legislation.