Trade - American Chemistry Council

Over the past century, the U.S. chemical industry has become a major exporter of chemical products to markets throughout the world. Today, the chemical manufacturing sector is one of America’s top exporting industries, accounting for around 10 percent of all U.S. exports.

Chemical imports are an important part of competitive domestic business and represent a significant portion of U.S. trade: more than half of U.S. chemical imports are inputs into domestic production.

U.S. trade in chemicals (both imports and exports) has grown steadily over the years and the U.S. chemical industry has maintained a positive trade balance (exports are larger than imports). Due to access to abundant and affordable shale gas, U.S. chemical manufacturers continue to face comparatively lower production costs, enhancing competitiveness in key segments of the industry.

Chemicals Trade Balance by Segment

Top Trade Partners

Over the past quarter century, Canada and Mexico have consistently been top trade partners of the United States, with Canada retaining the #1 spot.

China quickly rose to the #3. India and Ireland have played increasingly larger trade roles in recent years, where trade between the U.S. and the United Kingdom and France has declined.

Many other U.S. trade partners have maintained positions within the top ten (based on total trade value), including China (which was #9 25 years ago, but has maintained the #3 spot since 2007), Germany, Japan, South Korea and Brazil. India and Ireland have played increasingly larger trade roles in recent years.

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Largest export markets for U.S. chemical exports in were Canada ($29 billion) and Mexico ($28 billion)

Chemistry Exports by State

Not surprisingly, Texas and Louisiana are the largest chemical exporting states due to their large industry presence and access to export infrastructure. Together, they account for more than 40% of U.S. chemical exports. Other large exporting states include New Jersey, California, Illinois, and Ohio.

40%

Of chemical exports come from Texas and Louisiana, the two largest chemical producing states.

The U.S. Enjoys a Comparative Advantage in Complex Chemistries

A nation is said to have a revealed comparative advantage in producing a good if it exports more than its fair share to satisfy world demand. The complexity* of a nation’s export basket largely explains differences in economic growth and per-capita wealth across nations. Over the past two decades, the U.S. has seen its comparative advantage in the most complex traded goods gradually decline. Looking more closely at the two sectors with the most complex traded goods, we see the United States lagging in machinery, whereas chemicals remain a persistent bright spot.

*Complexity measures the level of productive knowledge that is required for the manufacturing of a good. (Atlas of Economic Complexity)

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