UPS CEO: Updated NAFTA better than no treaty

DETROIT - The top executive of United Parcel Service said on Wednesday he is optimistic the U.S., Canadian and Mexican governments can successfully renegotiate NAFTA, and said not having a free-trade agreement in place would not be good for the three countries' economies.

'I'm still optimistic, but I think we're going to have to go through some difficult times just because each of the countries has issues specific to them,” UPS CEO David Abney told Reuters.

If a renegotiated treaty stimulates the economy, creates jobs and levels the playing field for the United States 'then the North American market as a whole will be much stronger than without a free-trade agreement,” he said.

'Not having a free-trade agreement would not be something we feel anyone would benefit from,” Abney added.

On Tuesday trade ministers from the United States, Canada and Mexico wrapped up a contentious round of talks on the North American Free Trade Agreement dominated by aggressive U.S. demands.

They agreed to extend the talks into the first quarter of 2018.

President Donald Trump, who made trade a centerpiece of his 2016 presidential campaign, repeatedly has threatened to terminate NAFTA if Mexico and Canada refuse major changes.

UPS is the world's largest package delivery company and favors modernizing NAFTA, including adding provisions for e-commerce and clarifying rules for small businesses to operate across borders.

'The supply chains are heavily intertwined between these three countries and I believe there's a deal to be had that would be a win-win-win,” Abney said.