STATEMENT

Contact: Tracy Cullen
(202) 974-5282
Email: tcullen@socplas.org

SPI STATEMENT ON CONGRESSIONAL PASSAGE OF THE U.S.–OMAN FREE TRADE AGREEMENT

WASHINGTON, D.C. (July 24, 2006) – On July 20, 2006, by a vote of 221–205, the U.S. House of Representatives approved the U.S.–Oman Free Trade Agreement (FTA). Following Senate passage of the deal by a vote of 60–34, the U.S.–Oman FTA will now go to President Bush for his signature. Passage of the U.S.–Oman FTA is a component of the President’s Middle East Trade Initiative, which envisions a U.S-Middle East Free Trade Area in the next several years.

William R. Carteaux, SPI President and CEO, issued the following statement:

“The Society of the Plastics Industry (SPI) supports passage of this newest bilateral free trade agreement. This is the first FTA signed in recent years in which all U.S. manufactured goods receive immediate duty-free entry as soon as the deal enters into force. For the U.S. plastics industry, this means that Oman’s current tariffs of 5 percent on imported resins, processed goods, plastics-working machinery, and molds will be reduced to zero. This enhanced market access opens the way to boost U.S. plastics exports to Oman, which last year were valued at $5.8 million.

“Despite its small size, Oman has been a solid market for plastics products. With other U.S. FTA partners, we typically see strong exports for U.S.-produced resins. In this case, however, during last year, our plastics goods exports – $4.1 million – were almost three times the value of our resin exports – $1.7 million. Pipe and tube products were our top export product to Oman, accounting for more than 40% of all U.S. plastics exports to the country. With immediate duty-free access for all plastics industry goods, the U.S.–Oman FTA stands out as a deal that offers concrete benefits for all segments of our industry.

“While we continue to stand by the need for greater liberalization of plastics trade via the multilateral process under the World Trade Organization, we believe that this FTA establishes the benchmark for obtaining real market access for our industry’s products in overseas markets. We’d like to see similar strong results in the FTA talks with South Korea and Malaysia.

“Opening markets for plastics industry goods falls squarely under SPI’s trade agenda, and we are pleased that this particular deal won approval by this nation’s lawmakers. But for the plastics industry, free trade is only one side of the equation. Our manufacturers also need urgent attention to the principles of fair trade. Plastics companies continue to confront – on a daily basis – the erosion of their market position, not because they sell goods of lesser quality, but because they can’t compete against the pervasive and massive influx of Chinese imports that are under-priced due largely to the imbalance in the yuan-dollar relationship. Thus, while we are steadfast supporters of an aggressive free trade policy, we implore the Administration and Congress to support effective mechanisms to expeditiously remedy this particular unfair trade practice. Today’s plastics industry needs an equal commitment to free and fair trade.”

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Founded in 1937, The Society of the Plastics Industry, Inc., is the trade association representing one of the largest manufacturing industries in the United States. SPI's members represent the entire plastics industry supply chain, including processors, machinery and equipment manufacturers and raw materials suppliers. The U.S. plastics industry employs 1.3 million workers and provides nearly $345 billion in annual shipments.

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