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chemicals logo  OPPORTUNITIES FOR THE U.S. CHEMICAL SECTOR
 Trans-Pacific Partnership

U.S. Chemical Exporters Currently Face Barriers in New TPP Markets**

$8.2 Billion in U.S. Chemical Exports to New TPP Markets in 2015


Chemical Exports Face Tariffs in New TPP Markets Up to 35%


An Estimated $236 Million in Duties are Levied on U.S. Exports of Chemicals in New TPP Markets Every Year


Importance of the U.S. Chemical Sector

1.2 Million U.S. Chemical Workers in 2015

Accounted for 13% of Total U.S. Manufacturing Production in 2014

$148 Billion in U.S. Chemical Exports to the World in 2015

U.S. Chemical Exports to the World Grew by 33% between 2009-2015

48% of Total U.S. Chemical Exports to the World in 2015 Went to the TPP Region

The Chemical Sector includes products such as cosmetics, paints, rubber products, plastics, fertilizers, and organic/inorganic chemicals

Key Market Access Benefits

Japan will eliminate import taxes on 100% of U.S. chemical exports immediately

Malaysia will eliminate import taxes on 88.7% of U.S. chemical exports immediately and 92.8% within 4 years

Vietnam will eliminate import taxes on 87.5% of U.S. chemical exports immediately and 99.7% within 4 years.

New Zealand will eliminate import taxes on 83.2% of U.S. chemical exports immediately and 89.5% within 4 years

New TPP Partners are Significant Markets for U.S. Chemical Exports

Japan $7.0 Billion
Malaysia $928 Million
Vietnam $465 Million
New Zealand $301 Million
Brunei $4 Million

U.S. Chemical Exports Currently Face
High Barriers in New TPP Markets...

range of current tariffs per country: Brunei: 0.9; Japan: 2.5; Malaysia: 6.1; New Zealand: 1.4; Vietnam: 4.2.

...Which Will Be Eliminated Under TPP.

97.2% of U.S. Chemicals Exports to New
TPP Markets will Enjoy Duty-Free Access Immediately
(Share of Exports by Tariff Elimination Basket)
Percentages rounded up to nearest whole number.

percent of chemical exports that will be duty free immediately: Japan 100%; Malaysia 89%; Vietnam 88%; New Zealand 83%; Brunei: 96%.
percent of chemical exports that will be duty free in four years or less: Malaysia 93%; Vietnam Nearly 100%; New Zealand 89%;
percent of chemical exports that will be duty free in 11 years or less: Malaysia 100%; New Zealand 100%; Brunei: 100%.

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Move the slider to see the percentage of goods that will become
duty-free over a certain amount of time

Opportunities for Selected Chemical Products

cosmeticsPersonal Care Products and Cosmetics

Vietnam currently applies tariffs as high as 27% on U.S.-made cosmetics, such as make-up, skin soap, shampoo, and deodorant. Under TPP, those tariffs will be eliminated entirely within four years.

cosmeticsFertilizer and
Agro-Chem

The new TPP countries represent large (Japan) and growing (Malaysia and Vietnam) markets for U.S. fertilizer and agro-chemical exports. U.S. fertilizers and agro-chemicals in these markets face tariffs up to 30%. However, under TPP, nearly all U.S. exports of those products will see immediate tariff elimination.

plasticsPlastics

TPP countries represent a significant market for the highly competitive U.S. plastics industry. Under TPP, tariffs as high as 25% will be eliminated and U.S. plastics producers will enjoy reciprocal market access in the new TPP countries: Japan will immediately eliminate all tariffs on U.S. plastics and Vietnam will eliminate nearly all of its tariffs on plastics within four years.

• For more information on the HS lines included in this sector report, please see this document.

* TPP Countries: Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru,
Singapore, the United States, and Vietnam

** New TPP Countries: Countries with which the United States currently does not have preferential
market access - Brunei, Japan, Malaysia, New Zealand, and Vietnam

For more information on the methods and calculations used, please see this guide.

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