Skip to main content
Sister Publication Links
  • Middle East Foam & Polyurethane
  • UTECH Asia/PU China
  • UTECH Europe
  • UTECH Las Americas
Subscribe
  • My Account
  • Login
  • Subscribe
  • Coronavirus
  • News
    • Asia
    • Americas
    • Europe
    • M & A
    • Financial results
    • Automotive
    • Wanhua completes MDI expansion in Yantai
      Sheela Foam suspends production at Jalpaiguri
      Slentex gains first industrial application
      Turkish sandwich panel maker expands to Azerbaijan
    • Casper 2020 sales up 9%, losses fall
      Coronavirus took 67% off Magna's seating earnings in 2020
      Fictiv raises $35m to expand digital manufacturing services
      Ingevity to make Capa polyols in Louisiana
    • iStock, 2019, automotive, interior,generic,original.jpg
      Adler Plezer in talks to buy Faurecia's AST interiors business
      Depressed automotive demand in 2020 hit Faurecia's numbers
      New conductive PU potting compound
      Kingspan profits up slightly in 2020
    • iStock, 2019, automotive, interior,generic,original.jpg
      Adler Plezer in talks to buy Faurecia's AST interiors business
      Turkish sandwich panel maker expands to Azerbaijan
      BPCL Polyol project in doubt
      PPG buys polyurea company Versaflex
    • Depressed automotive demand in 2020 hit Faurecia's numbers
      Casper 2020 sales up 9%, losses fall
      Coronavirus took 67% off Magna's seating earnings in 2020
      Kingspan profits up slightly in 2020
    • iStock, 2019, automotive, interior,generic,original.jpg
      Adler Plezer in talks to buy Faurecia's AST interiors business
      Depressed automotive demand in 2020 hit Faurecia's numbers
      Global car sales on rise in January 2021
      Coronavirus takes 14% off Lear's top line
  • Data
  • Information
    • Country Overview
    • Market Sector overviews
    • Technical articles
    • Company profiles and strategies
    • China’s PU industry on the path to recovery; plans for technology upgrades
      Chinese cold chains grow bigger
      Flexible foam rises to challenges in the Middle East and Africa
      Life at the cross-roads: what does the GCC offer PU?
    • Europe's flexible foam makers face rising prices as outages hit markets
      Western European car registrations rebound slowed in September
      Western European car registrations regained some ground in August
      Western European Car registrations rebound continued in July
    • Take out the VOC with hybrid release agents
      Batteries give pultrusions power
      Seeing a way through VOC and FOG
      Aromatic polyols for simpler rigid PU formulations
    • Hennecke and Frimo: an automotive partnership
      Pushing ahead: AutoRIM drives KM’s UK growth
      BASF opens it first ‘Creation Center’ in Mumbai with a PU twist
      Persistence pays off for CTM
  • Events
    • Exhibitions
    • Conferences
    • Webinars / Livestreams
    • Become a Speaker
  • Advertise
  • Contact Us
  • Issues
  • Subscribe
MENU
Breadcrumb
  1. Home
  2. News
March 14, 2018 12:00 AM

NAFTA ‘critical’ to future of US chemical manufacturers, ACC claims

Sarah Houlton
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print

    Washington DC – Withdrawal from the North American Free Trade Agreement (NAFTA) would create a tariff burden of up to $9 billion on US chemical exports.

    That stark warning comes in a recent report from the American Chemistry Council, entitled Withdrawal from NAFTA Would Erode US Manufacturing Competitiveness.

    The report foresees higher prices for manufacturers and consumers if the US left NAFTA. There is also the likelihood that Canadian and Mexican companies could turn to Chinese suppliers instead.

    In contrast, the report claims, if President Trump were to modernise NAFTA, the US chemical industry could capitalise on the strong competitive advantage created by the shale gas boom.

    Under a modernised NAFTA, the report predicts US chemical exports to Canada and Mexico could be a third higher by 2025. This would further support the chemical sector’s positive contribution to the US trade balance, said ACC.

    ACC’s analysis shows that NAFTA has helped economic growth and job creation in the US. Chemicals exports to its two closest neighbours grew from $13 bn in 1994 to a predicted $44 bn in 2018. They are projected to reach $59 bn by 2025 under NAFTA.

    ‘President Trump has the opportunity to help American manufacturers achieve enormous growth under a new, stronger and more modern NAFTA,’ said Cal Dooley, president and CEO of ACC.

    ‘In 2016, the chemical industry saved approximately $700 m in tariff relief on those exports, and $800 m in tariff relief on imports. The savings have helped drive economic growth throughout the manufacturing supply chain and lowered prices for manufacturers and consumers.’

    Trump: Proposing a range of tariffs

    Dooley added that 46,000 chemical industry jobs now depend on trade with Canada and Mexico.

    ‘Future growth depends on modernising this trade pact,’ he said.

    Dooley: opposing a range of tariffs

    ‘NAFTA has given chemical producers confidence to invest by providing certainty that increased volumes of US chemical and plastic products will be tariff-free for our NAFTA partners,’ said Emily Sanchez, director of economics and data analytics at ACC. She is also one of the lead authors of the report.

    ‘With a long capital cycle, certainty and confidence in future trade relationships are essential to justify future investment,' she said.

    ‘NAFTA has protected the US and our investors from extreme tariff uncertainty for more than two decades. Without those protections, tariff rates could rise dramatically, creating a domino effect that puts American businesses, investment, and jobs at risk,’ Sanchez added.

    Without NAFTA, chemicals and plastic products from China would be far more affordable, and attractive, to Canadian and Mexican companies. ACC believes the US could forfeit its North American market position to China.

    ‘Chemistry touches 96% of all manufactured goods, and when the price goes up, customers look for cheaper substitutes,’ Dooley explained. ‘Withdrawing from NAFTA will not strengthen America’s competitive advantage. It might even give trading partners the power to price us out of the market entirely.’

    Recommended for You
    Adler Plezer in talks to buy Faurecia's AST interiors business
    Adler Plezer in talks to buy Faurecia's AST interiors business
    Depressed automotive demand in 2020 hit Faurecia's numbers
    Depressed automotive demand in 2020 hit Faurecia's numbers
    Wanhua completes MDI expansion in Yantai
    Wanhua completes MDI expansion in Yantai
    Latest Issue
    Click HERE for Free Download
    View All Archives
    Get our newsletters

    Breaking news and in-depth coverage of essential topics delivered straight to your inbox.

    Subscribe today

    Register to access our archive of leading information on the polyurethanes industry.

    Subscribe now
    Connect with Us
    • Twitter
    • LinkedIn
    • Facebook
    • Youtube

    Follow us on social media for the latest polyurethanes industry news and event updates.

    Logo
    Contact Us

    Office 127,
    61, Willow Walk,
    London
    SE1 5SF
    E-mail us
    +44 (0) 203 287 5979

    Customer Service:
    +1 313 446 0450

    Resources
    • Advertise with Us
    • Media Kit
    • Staff
    • Careers
    • Ad Choices Ad Choices
    • Sitemap
    Legal
    • Terms and Conditions
    • Privacy Policy
    • Privacy Request
    Copyright © 1996-2021. Crain Communications, Inc. All Rights Reserved.
    • Coronavirus
    • News
      • Asia
      • Americas
      • Europe
      • M & A
      • Financial results
      • Automotive
    • Data
    • Information
      • Country Overview
      • Market Sector overviews
      • Technical articles
      • Company profiles and strategies
    • Events
      • Exhibitions
      • Conferences
      • Webinars / Livestreams
      • Become a Speaker
    • Advertise
    • Contact Us
    • Issues
    • Subscribe