APR Among Industry Organizations to Speak at USTR Hearing

Why It Matters

The surge of cheap PET imports threatens U.S. recycling infrastructure, jeopardizing jobs and undermining efforts to build a circular plastics economy.

Key Takeaways

• APR reports 25% drop in U.S. PET recycling capacity in 15 months
• Imports from India surged 1,200% between 2021‑2025, prices fell 60%
• Indonesia PET imports rose over 1,100% in same period
• Thailand PET imports jumped 2,278%, intensifying market oversupply
• APR urges USTR Section 301 action, exempting Mexico and Canada

Pulse Analysis

The USTR’s Section 301 hearings have become a focal point for U.S. manufacturers confronting foreign overcapacity, and the plastics sector is now front‑and‑center. APR’s testimony underscores how a wave of inexpensive PET resin from Asia is distorting market fundamentals, driving domestic recyclers out of business despite operational efficiency. By framing the issue as a trade distortion rather than mere competition, APR seeks to leverage trade remedies that could impose duties or quotas on low‑priced imports, a strategy that mirrors past actions in steel and solar industries.

Data submitted by APR reveal staggering growth in PET imports: India’s volumes surged over 1,200% from 2021 to 2025, Indonesia more than 1,100%, and Thailand an eye‑popping 2,278%. These inflows have slashed prices by 60% or more, eroding profit margins and prompting plant closures that collectively represent a quarter of U.S. PET recycling capacity. The price compression is compounded by China’s continued overproduction of virgin plastics, which exerts downward pressure on recycled‑plastic pricing worldwide. This confluence of high volume, low price imports creates a structural imbalance that domestic firms cannot absorb without policy intervention.

If the USTR acts under Section 301(b), the industry could see targeted duties that level the playing field, while preserving integrated supply chains with Mexico and Canada. Such measures would help stabilize prices, protect jobs, and sustain the domestic recycling infrastructure essential for meeting circular economy goals. Conversely, inaction risks a permanent loss of capacity, higher reliance on virgin plastics, and missed environmental targets, underscoring the urgency of a calibrated trade response.