THE INDUSTRY CONSULTATIONS PROGRAM

INDUSTRY SECTOR ADVISORY COMMITTEE ON CHEMICALS AND ALLIED PRODUCTS

FOR TRADE POLICY MATTERS

Background Information
The Industry Sector Advisory Committee (ISAC) on Chemicals and Allied Products is comprised of industry representatives from the chemicals and allied products sector that includes organic, inorganic and agricultural chemicals, plastic materials and resins, and drugs and pharmaceuticals. Often referred to as the keystone industry since nearly every other sector of the manufacturing economy uses its products, U.S. chemical companies account for an estimated one-quarter of total world chemical production. In 1998, with about $391 billion in shipments, the chemicals industry represents 1.9 percent of Gross Domestic Product (GDP) and generates over 10 percent of the nation's total exports, estimated at $68 billion.

Industry representatives serving on the Chemicals and Allied Products ISAC provide advice on trade policy matters. Recently, members of the Chemicals and Allied Products ISAC have provided advice on a range of issues that included: the U.S.-China bilateral agreement, the World Trade Organization (WTO), the Asia Pacific Economic Cooperation (APEC), and the Free Trade Area of the Americas (FTAA). During preparations for the WTO Ministerial, Chemicals and Allied Products ISAC members provided advice on a completion deadline for the new round of negotiations. They also supplied information on various non-tariff agreements being implemented by WTO members as well as contributory information on the elimination of chemical tariffs. Chemicals and Allied Products ISAC members established specific recommendations for a Foreign Direct Investment (FDI) framework. The committee also made suggestions regarding data protection, marketing rights, protection standards, and adherence to patent compulsory obligations within the existing Trade Related Aspects of Intellectual Property Rights (TRIPS) agreement. Finally, the Committee provided advice on APEC and FTAA by discussing the creation of a Regional Core Inventory of Chemicals, and the pursuit of the Chemical Tariff Harmonization Agreement (CTHA).

Industry representatives serving on the ISAC on Chemicals and Allied Products have a voice in U.S. trade policy formulation through the Industry Consultations Program (ICP), which emerged from the 1974 Trade Act, to ensure that trade negotiators were coordinating with the private sector during trade negotiations. Based on the program's success, the ICP was renewed and expanded by the Trade Agreements Act of 1979 and the Trade and Competitiveness Act of 1988. The Department of Commerce, the Office of the United States Trade Representative (USTR), and other agencies work side-by-side with business leaders who serve as advisors to the U.S. Government. The Department of Commerce and USTR have joint responsibility for operating the advisory committees of the ICP.

Eligibility for Membership on the Chemicals and Allied Products ISAC
Committee members are U.S. citizens representing U.S. manufacturing or service firms in the chemicals and allied products industry, trade internationally, and have a special interest in and knowledge of international trade issues. Representatives of industry associations may also participate. Additional information can be found on the Industry Consultations Program's website at www.ita.doc.gov/icp or by contacting:

The Industry Consultations Program
U.S. Department of Commerce
14th & Constitution Avenue NW, Room 2015-B
Washington, DC 20230
phone:  (202) 482-3268; fax:  (202) 482-4452
e-mail: Trade_Advisory_Center@ita.doc.gov