THE CHEMICAL Business is urging the Obama Administration to pursue new free-trade agreements, saying initiatives to open up foreign markets will assist USA producers capitalize on the sensational drop in all-natural gas costs within the last few couple of yrs.

"The U.S. chemical industry is now one of several lowest-cost producers on the planet," Calvin M. Dooley, chief executive officer concerning the trade group American Chemistry Council (ACC), noted at a Capitol Hill briefing final week.

The briefing marked the release concerning an ACC report that says the surplus of inexpensive all-natural gas recovered from shale formations?arich in the ethane required for chemical production?ahas lowered input costs for USA producers plus spurred demand in international markets for goods derived from chemical substances.

Exports of U.S.-made chemical substances and also plastics have increased by 15% because 2010, resulting inside a record$34.7 billion trade surplus for the industry final year, in line with the report.

To further expand chemical exports, ACC is calling to get a "robust comprehensive" trade pact using the European Union. America and EU trade officials have held preliminary talks and also are anticipated to give the go-ahead to start formal negotiations, maybe immediately after this spring.

"We are particularly excited about a potential U.S.-EU trade agreement, which would yield huge benefits for our business coupled with the broader manufacturing sector,"Dooley remarked. Eliminating tariffs on trade within the chemical sector across the Atlantic would produce annual savings for around $1.five billion, he said.

For enterprises with worldwide operations, "free-trade agreements are absolutely essential" to the capability to export products from the America, added Craig O. Morrison,CEO connected with Momentive Performance Materials and then chair for  board of trustees.

The report also calls for a more cost-effective regulatory atmosphere, expanded shale gas improvement, a lower corporate tax price, and additionally decreased freight rail transportation costs.
John J. Paro, CEO about ACC member HallStar , stressed that work to enhance United States export performance should begin by "enhancing competitiveness in the manufacturing ground floor and additionally then be met up top with open trade policies a level playing field for chemical companies looking to ship much more goods overseas."

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