SOCMA Welcomes Congressional Passage of Free Trade Deals
FOR IMMEDIATE RELEASE
October 12, 2011
Senior Manager, Public Relations & Media
Washington, DC –Washington, DC – The Society of Chemical Manufacturers and Affiliates (SOCMA) tonight hailed the passage of the long-delayed free trade agreements (FTA) with South Korea, Panama and Columbia in Congress, saying the vote will bring immediate relief to chemical manufacturers by allowing them to expand sales to these key markets.
“With tonight's vote in the House and Senate, the United States is no longer sitting on the sidelines, but is actively creating opportunities for business and job growth,” said SOCMA President and CEO Lawrence D. Sloan. “Effective trade policy is highly important to the chemical manufacturing industry and has been among SOCMA’s legislative priorities since its inception. We are looking forward to a more active trade agenda, with increased engagement by the U.S. looking for additional trade partners to increase market access and provide opportunities for American manufacturers.”
Negotiated in 2007, each one of these agreements has been held up for different reasons, further exacerbating the fragile state of the U.S. economy. In a letter to Senate Finance Committee Chair Max Baucus (D-MT) and Ranking Member Orrin Hatch (R-UT) in July, SOCMA outlined the benefits of approving the FTAs to chemical manufacturers, saying that the Columbia deal, in particular, would boost the chemical industry.
“The benefits to chemical manufacturers as a result of approving FTAs are real,” SOCMA explained in the letter. “For example, the chemical industry paid $480 million in duties to Colombia between 2008 and 2010, the most of any other exporting sector. The FTA with Colombia would eliminate 80% of these duties once the agreement becomes effective and would eliminate the rest within 10 years. Clearly, this pending FTA will bring immediate relief to chemical manufacturing companies, allowing them to expand sales to this important market.”
Similarly, the FTAs with Korea and Panama would only strengthen relations and allow U.S. manufactures to compete with companies, such as those from the European Union. Korea is the seventh largest market for U.S. chemical exports, and from 2008-2010, approximately $892 million in duties were paid on chemical products to the country. Duties paid to Panama for the same time period were $34 million.
For the past 90 years, SOCMA has made international trade among its top priorities. SOCMA and its members have been strongly advocating for passage of the FTAs in recent years during meetings with administration and congressional officials and during events such as the annual Washington Fly-in.
SOCMA’s Trade Committee, chaired by Jim DeLisi of Fanwood Chemical, is charged with promoting fair and favorable trade policies that allow SOCMA members to produce, import and export goods competitively in the global market. The guiding principle of this committee is to advocate the passage of rational laws and regulations that allow members to operate in a productive manner as good corporate citizens.
SOCMA is the only U.S. based trade association dedicated solely to the batch, custom and specialty chemical industry. Since 1921, we have represented a diverse membership of small, medium and large chemical companies, making us the leading authority on this sector. SOCMA has a global membership of more than 200 companies. For more information on our services and products, please visit www.socma.com.
ChemStewards® is SOCMA’s flagship environmental, health, safety and security (EHS&S) continuous performance improvement program. ChemStewards was created from industry’s commitment to reducing our environmental footprint. Industry created ChemStewards to meet the unique needs of the batch, custom, and specialty chemical industry. As a mandatory requirement for SOCMA members engaged in the manufacturing or handling of chemicals, ChemStewards is helping participants reach for superior EHS&S performance. To learn more visit www.chemstewards.com.