Chemical Manufacturing

• Polyethylene resins
• Potassium hydroxide
• Industrial gases
• Fertilizer intermediates
• Synthetic rubber

1. 1

   Accelerate investment in carbon capture for chemical production facilities

2. 2

   Develop circular chemistry capabilities using recycled and bio-based inputs

3. 3

   Pursue bilateral chemical regulatory mutual recognition agreements

4. 4

   Expand Alberta petrochemical capacity to capture downstream value from bitumen

5. 5

   Establish strategic storage and logistics for cross-border supply continuity

Chemical products generally receive duty-free treatment under CUSMA, but Section 232 tariffs on feedstock metals and anti-dumping duties on specific chemical categories create indirect cost pressures. Alberta's petrochemical expansion benefits from CUSMA market access but faces uncertainty around carbon border adjustment mechanisms. Cross-border regulatory harmonization on chemical safety standards remains incomplete.

Alberta and Ontario chemical producers are deeply integrated into US Gulf Coast supply chains for both feedstock sourcing and downstream distribution. Pipeline capacity constraints and rail transportation bottlenecks can strand production during peak demand periods. Environmental regulatory divergence between provinces and US states complicates compliance for cross-border shipments.

Canada's chemical sector leverages abundant natural gas feedstock and growing petrochemical capacity in Alberta. US Gulf Coast producers maintain cost advantages from scale and infrastructure maturity. Emerging demand for low-carbon chemicals and circular economy feedstocks creates differentiation opportunities for Canadian producers.