Chemical Makers Applaud Proposal to Eliminate Tariffs

11/26/2002

From: Chris VandenHeuvel of the American Chemistry Council, 703-741-5587, Email: chris_vandenheuvel@americanchemistry.com

ARLINGTON, Va., Nov. 26 -- The American Chemistry Council (ACC) congratulated the Bush Administration today on its groundbreaking proposal to eliminate tariffs worldwide by 2015, as announced by U.S. Trade Representative Robert Zoellick and Commerce Secretary Donald Evans.

In its submission to the World Trade Organization, the Bush Administration proposed a method for WTO countries to reach agreement on reducing and eventually removing tariffs on non-agricultural products, including a provision for the elimination of chemical tariffs by 2010. Chemical makers, the number one exporters in the United States, have long pushed for the global elimination of tariffs and the leveling of the competitive playing field.

Exports of U.S. chemicals in 2001 were subject to $3.9 billion in tariffs around the world. Reaching as much as 63 percent, these tariffs make U.S. chemical products more expensive for foreign customers and effectively close some markets to U.S. goods. "We are very pleased that the Administration is taking such a strong U.S. position into the Doha Round," said ACC's President and CEO Greg Lebedev, referring to the upcoming trade negotiations at the WTO. "This tariff elimination proposal will open markets around the world and help all countries achieve the benefits of economic growth by more fully participating in the global economy."

"Tariff elimination also is key to the continued growth of U.S. business," Lebedev continued, "by expanding markets and improving competitiveness through lower export prices. This proposal is a crucial element of the nation's long term economic health."

A key sector of the nation's economy, the business of chemistry in the U.S. is a $454 billion enterprise and represents 26 percent of global chemical production. As the nation's largest exporter, with $80 billion in exports in 2001, the business generates 10 cents out of every dollar in U.S. exports.

------ The American Chemistry Council (ACC) represents the leading companies engaged in the business of chemistry. ACC members apply the science of chemistry to make innovative products and services that make people's lives better, healthier and safer. ACC is committed to improved environmental, health and safety performance through Responsible Care (,common sense advocacy designed to address major public policy issues, and health and environmental research and product testing. The business of chemistry is a $450 billion enterprise and a key element of the nation's economy. It is the nation's largest exporter, accounting for ten cents out of every dollar in U.S. exports. Chemistry companies invest more in research and development than any other business sector. Safety and security have always been primary concerns of ACC members, and they have intensified their efforts, working closely with government agencies to improve security and to defend against any threat to the nation's critical infrastructure.

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