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ACC Responds to Comments by Ambassador Katherine Tai on Status of Section 301 Tariffs and Product Exclusions

ACC Urges Administration to Launch New, Comprehensive Exclusion Process, Recognize Importance of Intermediate Inputs from China to the Biden ‘Build Back Better’ Agenda

Andrew Fasoli

WASHINGTON (October 7, 2021) – The following statement may be attributed to American Chemistry Council (ACC) Director of International Trade, Ed Brzytwa, in response to recent remarks by U.S. Trade Representative (USTR) Katherine Tai regarding the Biden Administration trade agenda:

“ACC’s top priority continues to be calling for comprehensive tariff relief – particularly on essential intermediate inputs – so that the chemical industry and our products are better positioned to support President Biden’s ‘Build Back Better’ agenda.

“The existing product exclusion list is several years old – and, as USTR has indicated, most of the exclusions have now expired. We have witnessed dramatic market shifts since USTR first imposed the Section 301 tariffs and granted exclusions. ACC urges USTR to launch a comprehensive new exclusion process that is fair, open, and transparent. Such a process would give U.S. manufacturers the opportunity to obtain tariff relief in response to those market shifts. Not updating a three-year-old list runs contrary to the USTR’s commitment to take stock of today’s economic and trading environment and the growing demand of U.S. manufacturers for necessary inputs to make products here at home.

“While many intermediate inputs must be imported from China, the net benefit they provide to the United States is enormous. Manufacturers rely on these inputs to make products right here at home; many of the products are consumed here, and many more are exported. Boosting exports is key to a worker-centric trade policy, particularly for our industry, as 25 percent of all U.S. chemical industry jobs already depend on exports. The data is clear: enhancing U.S. chemicals export competitiveness through the strategic importation of intermediate inputs is a proven formula for creating jobs, and for ‘Building Back Better.’”

American Chemistry Council

The American Chemistry Council’s mission is to advocate for the people, policy, and products of chemistry that make the United States the global leader in innovation and manufacturing. To achieve this, we: Champion science-based policy solutions across all levels of government; Drive continuous performance improvement to protect employees and communities through Responsible Care®; Foster the development of sustainability practices throughout ACC member companies; and Communicate authentically with communities about challenges and solutions for a safer, healthier and more sustainable way of life. Our vision is a world made better by chemistry, where people live happier, healthier, and more prosperous lives, safely and sustainably—for generations to come.

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