Frequently Asked Questions (FAQs)

Isn't it true that trade policy just supports exporting US jobs to lower-standard countries?

No – trade gives us access to key markets and fair rules for all companies to compete on a level playing field. Look at key investment destinations for US companies – like China and India, yes they are members of the World Trade Organization (which provides investment protection rules) – but the US does not have a Free Trade Agreement with these countries. This means that the US has to pay a large amount in tariffs in order to export to these countries. Companies invest to create markets – not to reduce standard of behavior.

Why doesn't the US do a better job making sure trading partners "play fair"?

The US Trade Reps’ office actively works with partner countries on all levels, from capacity building measures to increase their ability to enforce rules; to bringing dispute settlement cases to set legal precedent and vigorously enforce rules.

Aren't trade agreements better for the other partner than the US anyway? Don’t they need our market more than we need theirs?

Ninety-five percent of the world’s customers live outside the US. We need access to them, and their buying potential as well.

How does trade policy help Dow's business growth strategy?

By giving us access to customers and emerging markets like Eastern Europe, China, India
By enforcing a global level playing field for the industry
By fostering a high standard, high quality rule of law/investment climate for us to invest in countries with access to advantaged feedstock

Competition from unfair, subsidized products from emerging countries (like China) is hurting the US - what can be done about this?

There are a number of options, ranging from dialogue with trading partner countries to improving their domestic behavior, in order to promote market-driven rules and by bringing anti-dumping or counter-vailing duty cases through government as a last resort of enforcement for rules violations.

How is the chemical industry affected by trade?

The chemical industry benefits hugely from trade. In the US alone, we have been the number 1 exporting industry – a fact which has fallen off in recent years due to the high cost of energy and feedstocks.

Doesn't opening up our market to more foreign participation create a security risk?

No – the US has always been one of the most open markets in the world, and benefits greatly from foreign investment and access to foreign capital. The US system has rules to ensure that security measures do not pose a negative issue in any investment – relying on the inter-agency Committee on Foreign Investment in the US (CFIUS) to review deals of national importance and ensure safety first.

Trade does disadvantage some players – some workers and smaller companies – what is the US Government doing about that?

The government passed Trade Adjustment Assistance over a year ago to create a program where manufacturing workers who’s jobs are displaced by trade can access benefits and opportunities for training.

But the US Government definitely needs to do more – including funding better education to ensure that America’s workers are prepared for the 21st century economy.

How can trade advocacy support my business' growth?

By giving you access to key markets; removing barriers/costs/tariffs to supply of your product.

Wouldn't it be better if we just stopped the focus on trade and figured out a better model before we seek any new agreements?

US trade agreements work, and stepping out of the trade game only gives the advantage to other countries. Trade negotiations don’t stop because the US isn’t playing – other countries will negotiate preferential bilateral agreements and sew up key markets. US needs to lead this debate to ensure the highest standard of agreement; strong enforcement of the rules; and access for American companies to global consumers.