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Texas urged to adopt deposit refund system amid unstable plastic import market

Texas urged to adopt deposit refund system amid unstable plastic import market

A new study by Dr. Raymond Robertson from Texas A&M University highlights the instability of U.S. plastic waste imports, particularly with changes in tariffs. The study, titled “Plastic Trade, Tariffs, and The Case For A Deposit Refund System,” emphasizes the need for Texas to establish a deposit refund system to stabilize its manufacturing base and consumer prices.

The research indicates that even minor tariff increases can significantly affect U.S. plastic waste imports, which could disrupt manufacturing supply chains and hinder environmental progress. Although tariffs have been implemented to protect U.S. industries and encourage local sourcing of recycled materials, without developing in-state collection capabilities, manufacturers remain at risk.

Maia Corbitt, President of Texans for Clean Water Inc., said, “This research proves that our recycling system is too dependent on unpredictable foreign waste streams.” She emphasized the importance of a deposit refund system in Texas to ensure local collection and recycling of bottles and cans while mitigating rising costs for families.

During the 89th legislative session, House Bill 2048 by Representative John Lujan (R-San Antonio) would have established a bottle deposit system in Texas. According to the Texas Legislature Online, the bill was approved unanimously out of the House Committee on Environmental Regulation and was placed on the General State Calendar but did not receive a vote of the full House of Representatives.  

The impact of tariffs extends beyond environmental concerns though, says Robertson. Tariffs on metals have already increased packaging costs for food and beverages, with plastics facing similar challenges due to new tariff rules on recycled PET plastic imports. Joe Trotter, Director of Texans for Clean Water Inc., noted that while tariffs help balance trade, they require robust domestic collection systems to be effective.

“Dr. Robertson’s work shows the danger of relying on volatile imports. Texas can lead by pairing tariffs with a deposit refund system that secures the material our manufacturers need while cleaning up our rivers and communities,” said Trotter. 

Texans for Clean Water Inc. advocates for a market-driven deposit refund system based on successful state and international models. They argue that such a system would retain valuable recyclable materials within Texas, reduce litter, and strengthen local supply chains against global economic fluctuations.