Cargill is eager to begin work to modernize and improve the North American Free Trade Agreement (NAFTA), rather than dismantle it, according to David MacLennan, the company’s chairman and CEO.
“We have to avoid moves that slow down global trade and in the end will prove counterproductive,” MacLennan wrote in a recent blog on the Huffington Post website. “The benefits of trade go both ways.”
In the blog post, which also discussed immigration, national policy and education, MacLennan said Cargill is “fully in favor” of policies that work to achieve the goal of driving economic growth. In addition to the blog, dated February 3, MacLennan also spoke on these topics on February 1 before a congressional committee in Washington, on February 2 before a legislative panel in St. Paul, Minnesota, and on February 3 at a University of St. Thomas luncheon in St. Paul.
Cargill is the nation’s largest private company by sales and its largest food processer, shipper and trader. Therefore, many new policies enacted by President Donald Trump and the 115th U.S. Congress will likely affect the company.
“The events of the last two weeks and some of the policies that have been announced make it more compelling and more urgent that we be more public and more front-facing on things like trade, immigration, food innovation,” MacLennan said.
MacLennan said Cargill was disappointed that Trump withdrew from the Trans-Pacific Partnership (TPP) and that he thinks NAFTA is working, but “any deal can always be improved.”
“As we engage, we will make a strong case that trade is good for America,” he said. “Ninety-six percent of the world’s consumers live outside the U.S. We cannot afford to wall ourselves off from those markets.”
Cargill wants to work with “productively and effectively with the U.S. Congress and the new Trump administration” on U.S trade policy, MacLennan said. He added that he is optimistic about Trump’s appointees to lead the Commerce and Agriculture departments, as well as the U.S. Trade Representative.
Immigration policies
MacLennan also stressed the importance of legal immigration in the U.S. and how important it is for business.
“As workers across the U.S. age, keeping an open policy on legal immigration has never been more important. That is true of all types of workers, from those with blue collars to those with PhDs,” he said.
In response to the executive order signed by Trump that blocked the entry of alien nationals from Iraq, Iran, Libya, Somalia, Sudan, Syria and Yemen, MacLennan said: “To stay competitive, we need the ability to move our talented colleagues around the world. … Unfortunately, the current climate has many of our smartest people from outside the U.S. questioning whether they want to stay here.”
“We should also keep in mind that a legal immigration system that works is the best way to address illegal immigration. … Cargill only employs people who are legally allowed to work in the U.S. We also legally employ refugees, and they need policies that ensure certainty for themselves and their families. At the same time, we need improved visa programs to address labor shortages, and a system that effectively confirms the identity and work eligibility of applicants.”
Part of the executive order, known as the “travel ban,” has been blocked by a judge.
