US NACD expects trade and EPA changes under a Biden presidency

HOUSTON (ICIS)–Under a Joe Biden administration there could be a removal on some of the section 301 tariffs and a protection of the Generalized System of Preferences (GSP) trade programme, said the president of the National Association of Chemical Distributors (NACD).

“This would be good for our chemical distributors who import products from countries around the world, including China and South America, and it will be one of our top priorities for next year,” said Eric Byer, president of the NACD, in an interview with ICIS.

In 2019, the NACD urged President Donald Trump to rethink its tariffs on Chinese goods imported to the US because of a negative impact on the chemical distribution industry. Many of the tariffs remain at 25%.

Votes are still being counted in key battleground states, with neither candidate reaching the 270 electoral votes needed to be the projected Electoral College winner. So far, Biden has won enough states for 264 electoral votes with Trump trailing behind with 214 electoral votes.

If Biden wins the presidency, he will have to fast-track a coronavirus (Covid-19) relief bill to save small businesses in the chemical sector that need a second round of the Paycheck Protection Program (PPP) funding to keep their business afloat in his first few weeks in office, said Byer.

The PPP is a US Small Business Administration loan that helps businesses keep their workforce employed during the coronavirus (Covid-19) crisis.

When it comes to implementing Biden’s extensive environmental policies, that will depend on who he appoints to head the US Environmental Protection Agency (EPA).

“[Biden] is moderate on some things and more liberal in others,” said Byer. “It really depends upon some of the key players that he appoints to the EPA. At this point we have to wait and see.”

The Biden transition team has not released a short list of names for those in consideration to head the EPA.

Biden’s EPA is expected to have a greater focus on sustainability, with revisions to the Clean Air Act and the Clean Water Act on the table.

“Our businesses are distributors. That leaves us in the middle. We’re waiting to see what happens to respond accordingly. As a distributor arm for the chemical industry, we try to move in partnership with our manufacturing partners,” said Byer.

During Trump’s term, tax reform has been a major priority for chemical distributors. The proposed Biden tax plan would repeal major tax reductions passed in 2017.

“For a lot of small companies being able to put money back into your business is a big deal, even during these challenging times. Being able to do that for years has allowed them to survive the last nine months,” said Byer.

Many chemical distributors shifted into the sanitizer marketplace earlier this year, and other companies affected by the coronavirus have begun to see a rebound, according to Byer. He sees that trend continuing no matter who wins the election.

“The economy is going to be pretty strong,” said Byer. “Catalyst-type bills such as infrastructure reform could provide road, rail and waterway improvements could help our businesses become more efficient when they transport products.”

Interview by Janet Miranda