Canadian chemicals still in trouble

The Canadian chemical industry's dream of becoming a major factor in the world petrochemical market may come true in time. But it will be delayed. For the moment, the industry, along with most other Canadian industries, is in big trouble. The Canadian economy is in a shambles. Gross domestic product has been falling since the second quarter of last year. Unemployment has remained persistently high. Housing starts are down. Other industries that are important outlets for chemicals—pulp and paper, for instance—are retrenching. Although there are signs that these problems may be starting to ease, inflation has been running at an average, annual 10.5 to 11%. The Canadian dollar remains weak relative to the U.S. dollar. All of this has had an obviously adverse impact on the Canadian chemical industry. And, to make matters worse, the worldwide petrochemical glut is making it increasingly difficult for the industry to export. Canadian chemical exports declined in the second ...