International Perspective: Changing Trade Patterns

Presented By:

Michael D. Taylor

Senior Director, International Affairs and Trade

AgendaOverview of the U.S. Plastics Industry Trade

U.S. Trade Policy Update

FF&B Trade Flows & Market Opportunities

Q&A

3

Positivetrade balanceof $12.6 billion

$49.5BPLASTICS 7.3%

2014 Trade Statistics

In 2014, the U.S. plastics industry exported goods valued at $62.1 billion, up 3.1 percent from 2013

$35.1BRESINS 1.8%

$25.0BPRODUCTS 5.1%

$528.3MMOLDS 10.1%

$1.7BMACHINERY 7.7%

Source: U.S. International Trade Commission

Top Industry Export Markets20

02

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

$0

$5,000,000,000

$10,000,000,000

$15,000,000,000

$20,000,000,000

$25,000,000,000

$30,000,000,000

$35,000,000,000

$40,000,000,000

Mexico Canada China Belgium Brazil All Others

U.S

. $ B

illio

ns

Top Plastics Industry Export Markets 2014

All Others $23.5 billion

Mexico $15.8 billion

Canada $13.2 billion

China $5.2 billion

Belgium $2.4 billion

Brazil $2.1 billion

Total $62.1 billion

Changes in U.S. Plastics Industry Exports

Mexico Canada China Belgium Brazil Japan South Korea

Germany United Kingdom

Hong Kong

World-30%

-20%

-10%

0%

10%

20%

30%

40%

9.5%

3.0%

-8.9%

-3.8% -4.8%-2.5% -2.2%

-9.5%

0.6%

-11.5%

0.0%

9.1%

0.4% 0.4%

12.0% 11.4%

-13.3%

14.2%

2.4% 1.9%

-5.8%

2.7%

5.9%4.4%

7.4%

3.0%

-8.3%

3.6%1.5%

5.8%

11.5%9.6%

3.1%

2012 2013 2014

Changes in U.S. Plastics Industry Exports for the Top 10 Exports Markets2012-2014

Source: U.S. International Trade Commission

Growth of Plastics – Industry Exports

NAFTA BRIC Free Trade Agreement Countries

Asia EU28 South America TOTAL-10%

-5%

0%

5%

10%

15%

6.3%

-7.5%

4.0%

-7.9%

-4.4%

2.4%

0.0%

4.9%

2.6%3.5%

-4.5%

3.7%

-3.1%

2.7%

5.2%

0.3%

3.9%2.6%

5.9%

-3.1%

3.1%

2012 2013 2014

Percentage Growth of Plastics Industry Exports2012-2014

Source: U.S. International Trade Commission

Trade Agreements Benefit U.S. Exports

• Exports to FTA partners are up 57% since 2009.• 46% of U.S. goods exports go to our trade agreement partners.• U.S. export growth to our FTA partners (57%) has grown more rapidly

than exports to the rest of the world (44%).• In 2013, 21 of 50 states had record-high exports to these partners.• As a share of goods export value, exports from SMEs exceed the

overall worldwide average of 33% in many FTA markets, including new partners South Korea, Colombia, and Panama.

• The U.S. has a $15.2 billion trade surplus in non-oil products with our FTA partners, nearly 70% higher than the 2009 value nearly 70% higher than the 2009 value.

• In 2014, the U.S. plastics industry had more than a $20.9 billion surplus with our twenty FTA partners.

Source: U.S. Department of Commerce

8

Trade Promotion Authority (TPA)

Trade Promotion Authority (TPA) also known as fast-track negotiating authority is legislation that:

1) Helps shape the principal goals the United States wants to accomplish in international trade negotiations with other countries

2) Establishes a framework for Congress and the Executive Branch to partner in pursuing trade agreements and enacting bills implementing the agreements into law

3) Includes a set of legislative procedures that allows the President to submit a bill implementing a trade agreement to Congress for an up - or - down vote within a set period of time, without amendments.

Trans-Pacific PartnershipTrans-Atlantic Trade & Investment Partnership

Global Opportunities

9

• 2014: U.S. plastics industry exports to the 11 TPP countries were more than $34B

• Since 2000: plastics exports to TPP countries increased more than 91%

• 2014: plastics industry trade surplus with TPP countries was $13.7B

• A high-standard TTIP would advance trade and investment liberalization and address regulatory and other non-tariff barriers

• Based on 2011 trade flows, the U.S. plastics industry would be one of the top benefiting sectors with a total potential tariff savings of $465M

Trans-Pacific Partnership (TPP) by the Numbers

• 698 – The U.S. exported $698 billion in goods to TPP markets in 2013.• 97 – Small and medium-sized enterprises accounted for 97 percent of all

U.S. companies exporting goods to TPP countries in 2011.• 45 – TPP markets accounted for 45 percent of all U.S. goods exports in

2012.• 4 to 50 – America's share of imports into TPP countries varies considerably,

accounting for as little as 4 percent of Vietnam's total imports to as high as 50 percent of Mexico's total imports.

• 1.4 to 5.5 – TPP countries include both developed and developing countries, with projected growth rates ranging from 1.5 percent (Japan) to 5.5 percent (Peru).

• 38.5 – The U.S. plastics industry exported goods worth more then $38.5 billion to the TPP countries in 2014 up 4.6 percent from 2013.

U.S. Plastics Trade Balance by Segment

Source: U.S. International Trade Commission

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

-10,000,000,000

-5,000,000,000

0

5,000,000,000

10,000,000,000

15,000,000,000

20,000,000,000

25,000,000,000

Resin Products Machinery Molds

U.S. Plastics Trade Balance with FTA Countries by Segment

Source: U.S. International Trade Commission

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

-2,000,000,000

0

2,000,000,000

4,000,000,000

6,000,000,000

8,000,000,000

10,000,000,000

12,000,000,000

Resin Products Machinery Molds

Classification Codes

• North American Industrial Classification System (NAICS) Codes– 326 Plastics and Rubber Products Manufacturing

• 3261 Plastics Product Manufacturing– 32611 Plastics Packaging Materials and Unlaminated Film and Sheet Manufacturing

» 326111 Plastics Bag and Pouch Manufacturing» 326112 Plastics Packaging Film and Sheet (including Laminated) Manufacturing» 326113 Unlaminated Plastics Film and Sheet (except Packaging) Manufacturing

• Harmonized Tariff Schedule Codes– Chapter 39 Plastics and Articles Thereof

• 3919 Self-Adhesive Plates, Sheets, Film, Foil and Strip, of Plastics, whether or not in Rolls

• 3920 Other Plates, Sheets, Film, Foil and Strip, of Plastics, Non-Cellular and Not Reinforced, Laminated, Supported or Similarly Combined with Other Materials

• 3921 Other Plates, Sheets, Film, Foil and Strip, of Plastics

13

U.S. Exports of Film & Sheet (Except Packaging) 2000-2014

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

0

200,000,000

400,000,000

600,000,000

800,000,000

1,000,000,000

1,200,000,000

1,400,000,000

Canada Mexico China United Kingdom Belgium Germany

Japan Brazil Singapore Dominican Republic

U.S

. $

Mill

ions

U.S. Exports of Film & Sheet (Except Packaging) 2000-2014

200

0

200

1

200

2

200

3

200

4

200

5

200

6

200

7

200

8

200

9

201

0

201

1

201

2

201

3

201

40

50,000,000

100,000,000

150,000,000

200,000,000

250,000,000

United Kingdom Belgium Germany Japan Brazil Singapore

Dominican Republic

U.S

. $

Mill

ions

U.S. Imports of Film & Sheet (Except Packaging) 2000-2014

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

0

200,000,000

400,000,000

600,000,000

800,000,000

1,000,000,000

1,200,000,000

1,400,000,000

Canada Mexico China Germany Japan Oman South Korea

Taiwan United Kingdom Israel

U.S

. $

Mill

ions

U.S. Imports of Film & Sheet (Except Packaging) 2000-2014

200

0

200

1

200

2

200

3

200

4

200

5

200

6

200

7

200

8

200

9

201

0

201

1

201

2

201

3

201

40

100,000,000

200,000,000

300,000,000

400,000,000

500,000,000

600,000,000

Mexico China Germany Japan Oman South Korea Taiwan

United Kingdom Israel

U.S

. $

Mill

ions

U.S. Exports of Non Self-Adhesive Plates, Sheets, Film 2000-2014

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2,000,000,000

4,000,000,000

6,000,000,000

HTS 3920 HTS 3921

U.S

. $

Bill

ions

Top U.S. Markets for Other Plate, Sheet, Film Non-Cellular Not Supported 2000-2014

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

0

200,000,000

400,000,000

600,000,000

800,000,000

1,000,000,000

1,200,000,000

1,400,000,000

Canada Mexico China United Kingdom Belgium Germany

Japan Brazil Singapore Dominican Republic

U.S

. $

Mill

ions

Top U.S. Markets for Other Plate, Sheet, Film Non-Cellular Not Supported 2000-2014

200

0

200

1

200

2

200

3

200

4

200

5

200

6

200

7

200

8

200

9

201

0

201

1

201

2

201

3

201

40

50,000,000

100,000,000

150,000,000

200,000,000

250,000,000

300,000,000

350,000,000

400,000,000

450,000,000

China United Kingdom Belgium Germany Japan Brazil

Singapore Dominican Republic

U.S

. $

Mill

ions

Top U.S. Exports of Other Plate, Sheet, Film Non-Cellular Not Supported 2000-2014

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

0

200,000,000

400,000,000

600,000,000

800,000,000

1,000,000,000

1,200,000,000

1,400,000,000

1,600,000,000

Polymers of Ethylene Other Plastics NESOI PET

Polymers of Propylene Polymethyl Methacrylate Polymers of Vinyl Chloride NESOI

U.S

. $

Mill

ions

The Distribution of U.S. Exports of Other Plate, Sheet, Film Non-Cellular Not Supported 2014

26.8%

18.1%

12.6%

11.1%

5.7%

5.6%

20.1%

Polymers of Ethylene

Other Plastics NESOI

PET

Polymers of Propylene

Polymethyl Methacrylate

Polymers of Vinyl Chloride NESOI

All Other

Top U.S. Markets for Other Plate, Sheet, Film by 2000-2014

200

0

200

1

200

2

200

3

200

4

200

5

200

6

200

7

200

8

200

9

201

0

201

1

201

2

201

3

201

40

100,000,000

200,000,000

300,000,000

400,000,000

500,000,000

600,000,000

700,000,000

800,000,000

900,000,000

Mexico Canada China United Kingdom Hong Kong

Japan South Korea Germany France Italy

U.S

. $

Mill

ions

Top U.S. Exports of Other Plate, Sheet, Film 2000-2014

200

0

200

1

200

2

200

3

200

4

200

5

200

6

200

7

200

8

200

9

201

0

201

1

201

2

201

3

201

40

100,000,000

200,000,000

300,000,000

400,000,000

500,000,000

600,000,000

700,000,000

Cellular Polyurethanes Cellular Other PlasticsEx Cellular Ex Flexible NESOI Non-Cellular Combined w/ TextilesEx Cellular Flexible NESOI Cellular Vinyl Chloride

U.S

. $

Mill

ions

The Distribution of U.S. Exports of Other Plate, Sheet, Film 2014

23.3%

20.9%

16.6%

12.5%

10.7%

6.6%9.4%

Cellular Polyurethanes

Cellular Other Plastics

Ex Cellular Ex Flexible NESOI

Non-Cellular Combined w/ Textiles

Ex Cellular Flexible NESOI

Cellular Vinyl Chloride

All Other

In Conclusion…

• Notable Export Markets from 2013 to 2014 and 2015 YTD include:– Germany– United Kingdom– Netherlands– Japan– India

• Other Markets to Watch:– Taiwan– Singapore– Czech Republic– Italy– Finland– Belgium– Mexico– Canada

26

Thank You!谢谢 Merci Vielen Dank Grazie ありがとうございました 감사합니다 Obrigado Спасибо Gracias Teşekkürler

Questions & Answers

Michael Taylormtaylor@plasticsindustry.org202-974-5232