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Commodities have a significant global impact

 Washington, DC – Wrapping up World Trade Month, the Institute of Scrap Recycling Industries extolled the important role scrap materials play in global trade, both for the U.S. and foreign countries. Scrap materials are in the top 5 U.S.’s exports based on value, helping to supply the world’s growing demand for all commodities, including metals, plastics, electronics, rubber and more.

“Global trade is integral to the recycling industry, resulting in hundreds of thousands of jobs and billions of dollars in revenue,” said Robin Wiener, president of ISRI. “In any given year, 30 to 40 percent of scrap is processed for export. In 2013, commodity grade scrap products were exported to 160 countries worldwide, generating nearly $24 billion in export sales and significantly helping the U.S. balance of trade.”

Nearly 40 percent of the more than 460,000 jobs in the recycling industry in 2013 involved the process and sale of scrap for export. This amounted to nearly 185,000 workers, including 56,000 people processing and brokering materials, 52,000 suppliers of either materials, machinery, or services to the processors, and 76,000 suppliers of general goods and services to those working in the industry. In addition to job creation, the exporting of scrap creates revenue. On top of the nearly $24 billion in sales in 2013, scrap exports generated $3.5 billion in tax revenues for federal, state, and local governments.

“The benefit of exporting scrap goes well beyond the U.S. economy,” said Wiener. “Around the world, people gain access to used electronic products that might not otherwise be available. New recycling technologies and best management practices are shared across borders. Safe and responsible recycling infrastructures are built in developing nations. Hundreds of thousands of jobs are created in importing nations, all thanks to recycling.”

The Institute of Scrap Recycling Industries has long been a supporter of the free trade of goods and services around the world and continues to support the removal of barriers to trade. Earlier this month, ISRI submitted comments to the U.S. International Trade Commission’s investigation of the economic impacts of removing tariff barriers on a wide range of environmental goods including scrap commodities and scrap recycling equipment. ReMA supports the World Trade Organization’s recently announced plans to launch talks aimed at eliminating tariffs on the trade of environmental goods between 14 countries that represent 86 percent of the global trade in environmental goods.

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