RTR3G19Z
Andrew Mackenzie, CEO of BHP Billiton Ltd, speaks at the annual IHS CERAWeek conference in Houston, Texas March 4, 2014. REUTERS/Rick Wilking

BHP Billiton Chief Executive Officer Andrew Mackenzie urged the policy makers around the world to support free trade agreement and to lift the ban on crude oil export by the United States while addressing the U.S. Chamber of Commerce in Washington D.C on Wednesday. He also said that free trade agreement, as believed by the opponents of open markets, does not kill but creates jobs.

“The Trans Pacific Partnership and Trans-Atlantic Trade and Investment Partnership would both be strong steps forward,” he said. “And policy makers should also consider the measures their countries can take unilaterally to remove the barriers to trade.”

Mackenzie added that trade has been falling since 2007, the last time it reached its peak, and in the first half of 2015, it fell alarmingly low. This will lead to slow global growth, according to Mackenzie. However, he believes that country by country reforms and trade agreements like the trans-Pacific partnership can make way for better trade relations.

“Open markets promote job creation, economic growth and innovation,” he said. “All are jeopardised by the pressure placed on trade over the last decade when fears of competition, prompted by rapid growth in emerging economies, resulted in increased protectionism that was compounded by the financial crisis.”

But he also noted that there is no reason to fear the trade developments in China, India and other developing nations as continued growth in these countries would create jobs, increase productivity and uplift the global standards of living.

He pointed out that if U.S. revokes the remaining trade barriers to these countries, there are fair chances of the economy to grow by hundreds of billions of dollars and create around 1.5 million jobs. And the U.S. can consider taking the stand by repealing the ban on crude oil export and revising its natural resources policies.

Contact the writer at feedback@ibtimes.com.au, or let us know what you think below.