Acid. Acid Rain And U.S. Copper Competitiveness The Mexican-American Smelter Agreement

In July 1985, as the U.S. copper industry contracted and the Mexican industry expanded, a trans border pollution agreement was signed which included smelter air pollution control in the "Gray Triangle": Cananea, Nacozari and Douglas. Since then the Douglas smelter has been closed, a year earlier than initially required; though its new smelter is operating, S02 collection and acid disposal at Nacozari is yet to come; and the Cananea smelter has been un-touched. Nacozari and Cananea copper mining have expanded while a reduced U.S. copper industry has rationalized to a point of fragile profitability. As a paradigm of U.S. copper competitiveness, this paper attempts to explain the differential fortunes of copper in the two countries, to project the future of the smelter agreement as a function of acid disposal, and to consider the consequences of the politicized application of smelter pollution control in Arizona.