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CEA CEO to Detroit: Embrace Free Trade
date: February 26, 2008
SOURCE: Great Lakes IT Report
By: Matt Roush
The CEO of the Consumer Electronics Association appealed to a Detroit Economic Club audience for free trade, open technology standards and open competition as the keys to a prosperous future for Detroit, the nation and the world.
Gary Shapiro acknowledged that "free trade hurts people in the short run, but we must look at the big picture and what's best for our nation." He said free trade helped the high-tech industry add 25 million jobs in the last 15 years alone.
Shapiro's speech, titled "Technological Status Quo: The Oxymoron of Our Times," urged automakers to embrace free trade. To do otherwise, he says, sends the wrong message about Detroit and its products -- that they're not worth buying because they can't compete with the world.
“Change defines our era. It is the campaign theme of the remaining leading presidential candidates. But while candidates can only promise to change the world, technology guarantees it,” Shapiro said. “To the Detroit automakers, I say this: The technology industry is your opportunity.”
Citing new CEA research demonstrating increased consumer demand for in-vehicle electronics, Shapiro encouraged the automotive industry to work with consumer electronics manufacturers to develop a uniform, open standard for electronics connectivity within the car.
"The auto industry and the consumer electronics industry are increasingly intertwined," he said. But he said the open standard is needed to match the comparatively longer sales cycle of the automobile with the shorter sales cycle of consumer electronics. That way, consumers can feel confident they're buying a car whose electronic gizmos can be updated easily.
Future in-vehicle technologies, he said, are likely to include bioinformatics, sensors and location-based services, anything that tells a computer who's in the car and what they need.
"The next mobile wave will unleash new services, new jobs and phenomenal economic growth," Shapiro said.
He also said Detroit is uniquely qualified to take advantage of that wave: "with a highly skilled underemployed work force, availability of reasonably priced housing and commercial and industrial space, its phenomenal airport and beautiful area – this region has the ingredients for a turnaround," he said.
But he railed against "Michigan politicans and unions" that "fight loudly and strongly to protect Detroit from overseas competition. What America hears is that Detroit needs special help and can’t compete in the free market. I suggest a 180 degree switch in approach. Instead of fighting the Korean Free Trade Agreement, welcome it. Imagine if Detroit was to come out in favor of free trade. Say 'hit me with your best shot.' The world’s perception of Detroit would change."
Shapiro also said free trade offers the ability to export American values through music and film. And he said recent trade agreements have also contained worker and environmental protections.
In answering questions, Shapiro denied assertions that American wages have stagnated or declined under free trade, saying that Labor Department statistics show wages have risen 9 percent in real terms since 1992. And he said consumer electronics and the Internet have since then improved the quality of life for millions around the world.
Shapiro also said his organization is embracing mandatory electronics recycling initiatives. And he said that while electronics obviously use a lot of electricity, they also make possible energy-saving innovations like telecommuting and telemedicine.
Finally, Shapiro said that the gigantic International Consumer Electronics Show, held each January, would not be leaving Las Vegas. There were threats the show might move last month, over jacked-up hotel and labor rates during the event.
A complete transcript and podcast of the speech is available at www.ce.org.
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