WORLD: ACC testifies to USITC on importance of pending Trans-Pacific Partnership

Chemical producers are poised to capitalize on the economic opportunities made possible by increased regulatory cooperation and the elimination of tariffs under the new Trans-Pacific Partnership (TPP), Greg Skelton, senior director of regulatory and technical affairs for the American Chemistry Council, told the U.S. International Trade Commission (USITC).

Testifying on the role TPP can play in boosting chemical exports, Skelton said: “For the chemical industry, and for the broader U.S. economy, TPP has the potential to provide a significant boost to growth and job creation, which in turn would promote innovation and strengthen the international competitiveness of U.S. exporters. The growing competitive advantage of U.S.-based chemical production and its positive impact on the competitiveness of the broader manufacturing sector . . . makes initiatives such as TPP even more important.”

TPP countries Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the U.S. and Vietnam are expected to sign the deal next month. The implementation will mean, among other things, the phasing out of thousands of import tariffs and other trade barriers and the establishment of uniform rules on companies’ intellectual property.

To take full advantage of the chemical industry’s ability to drive export growth, TPP must follow through on eliminating trade barriers and enhancing regulatory cooperation between the 12 nations, Skelton explained. “Although tariffs on chemicals with TPP partners are relatively low for certain chemistries, for other chemistries, tariffs are as high as 25 %, particularly for plastics. Removing these remaining barriers will help to reduce the costs of production for U.S. chemical manufacturers and expand exports,” he concluded.

Source: Weekly “PetroChemical News”, Durham, NC, USA; 25 Jan 2016
(Syed Rashid Ali, Karachi, Pakistan)