WASHINGTON (May 5, 2026) – Jason Bernstein, Director of International Trade and Supply Chain, at the American Chemistry Council (ACC), testified today before the Office of the U.S. Trade Representative (USTR) at its hearing on Section 301 investigations into structural excess capacity in global manufacturing sectors.
The U.S. chemical industry is one of the nation’s most vital economic engines, forming the foundation of nearly every manufacturing sector. Chemical production supports millions of American jobs directly and indirectly and enables the production of critical goods that power the broader U.S. economy. From advanced materials and energy infrastructure to medical products and electronics, chemicals are indispensable to innovation, national security, and economic growth.
Free and fair trade is fundamental to the competitiveness of the U.S. chemical industry. American chemical manufacturers operate in highly integrated global value chains, exporting a significant share of their production while relying on imported raw materials, intermediates, and specialized equipment not produced domestically. Competitive access to international markets enables U.S. producers to achieve scale, support continued investment, and supply downstream industries ranging from automotive and construction to pharmaceuticals, agriculture, and national defense.
Structural excess capacity distorts this system by displacing U.S. chemical and plastic producers and blocking fair market access for U.S. chemical exports in third‑country markets. Addressing these challenges through pro-growth, targeted trade policies is essential to ensuring that U.S. chemical products can compete on a level playing field both domestically and internationally.
In his testimony, Bernstein emphasized that excess capacity driven by unfair, non‑market policies is undermining U.S. chemical and plastics production, distorting global markets, and threatening critical industrial value chains that depend on chemical inputs. He urged USTR to adopt a value‑chain approach that addresses the root causes of excess capacity and genuine challenges faced by U.S. chemical and plastics produces while preserving access to essential raw materials and supporting U.S. exports.
“Excess capacity fueled by unfair trading practices is undermining U.S. chemical production, displacing American producers at home and abroad, and creates long‑term risks for investment, innovation, and supply chain security,” said Bernstein. “A value‑chain approach will allow trade policy to confront these distortions decisively, while safeguarding access to critical inputs and supporting U.S. reindustrialization, exports, and high‑paying jobs.”
Bernstein also highlighted the importance of coordinating with trusted trading partners on structural excess capacity, enforcing and updating existing chemical provisions under trade agreements such as the USMCA to address current issues, and ensure that any trade actions taken do not unintentionally increase U.S. exposure to excess capacity by constraining raw materials or intermediate inputs. He also emphasized that ACC is willing to take the lead and organize a workshop on excess capacity with government support.
ACC continues to support trade policies that strengthen U.S. manufacturing, address unfair global distortions, and reinforce America’s leadership in chemicals and plastics production. The Council looks forward to continued engagement with USTR and the Administration as these investigations move forward.
