ACC Report: NAFTA Critical to Growth and Job Creation by U.S. Chemical Manufacturers

By modernizing the North American Free Trade Agreement (NAFTA), President Trump can help the U.S. capitalize on the chemical industry’s strong competitive advantage created by domestic shale gas; boost U.S. chemical exports to Canada and Mexico by 34 percent by 2025; and support the chemical industry’s positive contribution to the U.S. trade balance, according to a new economic report released today by the American Chemistry Council (ACC). A U.S. withdrawal from the trade pact would have virtually the opposite effect, creating a tariff burden of up to $9 billion on U.S. chemical exports to Canada and Mexico, translating into higher prices for manufacturers and consumers and likely forcing the industry’s two largest trading partners to turn to lower-cost imports from China to satisfy their demand for chemicals and plastics.

NAFTA a Boon for U.S. Chemical Manufacturers

According to ACC analysis, NAFTA has been instrumental to the growth and job creation of the U.S. chemical sector. U.S. chemical exports to Canada and Mexico have grown from $13 billion in 1994 to $44 billion in 2018, the report says. They are projected to reach $59 billion by 2025.

NAFTA Is Working  “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 million in tariff relief on those exports, and $800 million in tariff relief on imports. The cost savings have helped drive economic growth throughout the manufacturing supply chain and lowered prices for manufacturers and consumers.”

Read More about NAFTA and the U.S. Chemical Industry at ACC

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