WHEN: Today, Friday, December 9th
WHERE: CNBC's "Squawk on the Street"
Following are excerpts from the unofficial transcript of a FIRST ON CNBC interview with FedEx Chairman and CEO Fred Smith on CNBC's "Squawk on the Street" (M-F, 9AM-11AM ET) today, Friday, December 9th. Following is a link to the video on CNBC.com: http://video.cnbc.com/gallery/?video=3000574975.
All references must be sourced to CNBC.
SMITH ON TPP
Our recommendation is to take TPP and improve it. You've got to understand that the Chinese are now the second largest economy in the world. They have their own version of TPP. It's called RCEP. If we completely abandon TPP and don't improve it, if we cancel it rather than improve it, then we're going to see leadership in the trade area and in Asia to China. That's a very bad thing in my opinion.
SMITH ON TRADE
About 28 percent of our economy today is trade. That's up from 9 percent 40 years ago. The problem is we have allowed ourselves to be outmaneuvered with some other countries using mercantilist policies. And there are things in the current trade agreements which are not good. Where we have free trade agreements, which is what the President supports, which we have with 20 countries, we actually have a trade surplus with those countries as a whole.
SMITH ON TRUMP
I think it's fabulous. I mean he's talked about lowering corporate tax rates, going to a territorial system. That's one of the biggest reasons that our exports aren't greater. We do not have a competitive tax system. It'd be like playing basketball, and on the goal you shoot out its two feet taller…I think that the President's policies are very sound. He's articulating them very well. And I think that's what you're seeing in the rise of the stock market. An anticipation of higher growth.
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