Sign in Subscribe
European Union

ACC and Cefic Welcome Understanding on Transatlantic Chemicals Trade

Strategic Insights

— 1 min read

The American Chemistry Council (ACC) and the European Chemical Industry Council (Cefic) have welcomed the understanding reached by U.S. President Trump and European Commission President von der Leyen on July 27th regarding the transatlantic trade and investment relationships in the chemicals sector. This agreement aims to avoid measures that could have significantly affected the deeply integrated transatlantic trade and investment relationships. The chemicals industry fuels the competitiveness of almost all manufacturing value chains, including automotive goods, defense, agriculture, and consumer products.

Key Takeaways:

  • The ACC and Cefic have expressed encouragement that the understanding avoids measures that could have significantly affected the deeply integrated transatlantic trade and investment relationships in the chemicals sector.
  • The chemicals industry fuels the competitiveness of almost all manufacturing value chains, including automotive goods, defense, agriculture, and consumer products.
  • The EU-U.S. chemical industry has strong and longstanding ties in terms of investment, complementary production chains, research and development, and trade flows.
  • Most EU-U.S. chemicals trade is made up of intracompany and intercompany transfers that sustain jobs on both sides of the Atlantic.
  • A binding sectoral agreement on chemical products would benefit both sides by increasing bilateral market access for exports and ensuring a level playing field.
  • The U.S. and EU are both original signatories to the Chemical Tariff Harmonization Agreement (CTHA), which addresses and reduces tariff disparities on chemicals between the two jurisdictions.
  • Tariffs above CTHA rates risk disrupting the closely integrated transatlantic industry.
  • Regulatory cooperation and simplification, as well as support for new value chains like mechanical and advanced/chemical recycling, waste management, biomaterials, and carbon capture and utilization solutions, are also expected to be enhanced.

Statistics:

  • The understanding reached by U.S. President Trump and European Commission President von der Leyen aims to maintain the deeply integrated transatlantic trade and investment relationships in the chemicals sector.
  • The chemicals industry fuels the competitiveness of almost all manufacturing value chains, including automotive goods, defense, agriculture, and consumer products.
  • The EU-U.S. chemical industry has a significant trade flow, with most trade comprising intracompany and intercompany transfers.
  • The U.S. and EU are both original signatories to the Chemical Tariff Harmonization Agreement (CTHA), which addresses and reduces tariff disparities on chemicals between the two jurisdictions.

Sources:

  • American Chemistry Council (ACC)
  • European Chemical Industry Council (Cefic)

Read more