IPC Global Advocacy Report
7/17/2020

Dear IPC Members:

As we move into the heart of summer in the northern hemisphere, policy debates are heating up across the globe. This week’s newsletter provides updates on the U.S. presidential election; the FY21 defense spending bill in the U.S. Congress; the Brexit transition plan in Europe; and the plans of the new German presidency of the European Council. As usual, we’re also tracking a host of environmental, health and safety (EHS) regulations.

If you’re looking for signs of economic recovery amid the COVID pandemic, join IPC Chief Economist Shawn DuBravac on July 28 for a discussion of the latest data, trends, and risks, and what they mean for the electronics manufacturing industry. Register here.
 
IPC will continue to monitor the coronavirus pandemic and will continue to provide you with relevant, actionable industry information here. Keeping our workplaces and communities safe is essential; please let us know if we can assist you in any way.

All the best and stay safe,

Chris Mitchell
Vice President, Global Government Relations


TOP OF THE WEEK

Biden Economic Plan Emphasizes Manufacturing, “Buy American”: U.S. Democratic presidential candidate Joe Biden “is proposing sweeping new uses of the federal government’s regulatory and spending power to bolster U.S. manufacturing and technology firms,” the Associated Press reported. Biden calls for a $400 billion, four-year increase in government purchasing of U.S.-based goods and services plus $300 billion in new research and development in U.S. technology concerns. With about 100 days to go until the election, Biden has opened a wide lead in the polls over President Donald Trump. What do you think of the candidates’ economic platforms? IPC contact: Chris Mitchell.

Did You Know? The U.S. electronics manufacturing industry employs 1.3 million people directly and supports 5.3 million jobs in all. That translates into approximately $165 billion in direct labor income and $407 billion in total labor income. Impressive, huh? For more useful facts on our industry’s economic impacts, check out IPC’s latest economic impacts report; then take a minute to share the report with your elected officials. IPC Contact: Chris Mitchell.


DEFENSE AND SECURITY

Defense Spending Measure Approved by Top U.S. House Committee: The U.S. House Appropriations Committee approved the FY21 defense spending bill this week, as House leaders continued to work toward their goal of passing all 12 annual spending bills by August. The Senate, meanwhile, has yet to advance any of its appropriations bills amid disagreements over coronavirus funding and other issues. Congress is now expected to rely on a stopgap spending bill to keep the U.S. government in operation from Oct. 1 until after the November election, after which any legislative action will hinge on the election results. IPC has enlisted the support of a cadre of Members of Congress to secure funding for lead-free electronics research and development (R&D). Please let us know if you have any questions or would like more information. IPC Contact: Chris Mitchell.

 

ENVIRONMENT, HEALTH AND SAFETY

Does Your Company Use PFAS to Make Electronics? Regulators in the United States and European Union are eyeing chemicals in the per- and polyfluoroalkyl substances (PFAS) class. Please let us know if you use PFAS in your electronics processes and products. IPC Contact: Kelly Scanlon.

U.S. Chemical Data Reporting – Now Open! June 1 marked the opening of the U.S. Environmental Protection Agency’s Chemical Data Reporting (CDR) submission period. The CDR rule requires manufacturers and importers of certain chemical substances listed under the Toxic Substances Control Act (TSCA) Chemical Substance Inventory to report data to the EPA every four years. There are several new reporting requirements you should be aware of, including changes related to byproducts, including exemptions; and an improved process for reporting co-manufacturing. The deadline for reporting is November 30. Let us know if you have any questions as your company goes through the reporting process. IPC Contact: Kelly Scanlon.

EU Environment Ministers Call for Climate-Focused Recovery Plan: During a European Union Environment Council (ENV) video conference held July 13-14, EU environment ministers affirmed their desire to see a European recovery plan in line with environmental and climate policy goals, such as the European Climate Law, the Biodiversity Strategy 2030, and the Circular Economy Action Plan. The ministers agreed that for the economic recovery “reforms to promote growth and competitiveness, maintaining and creating good jobs and fostering skills development must go hand in hand with ambitious and cost-effective climate action and environmental protection.” The meeting followed a public statement calling for a green recovery by the environment ministers. IPC Contact: Alison James.
 
European Parliament Adopts Resolution on Chemicals Strategy: On July 10, the European Parliament adopted a non-binding resolution on the chemicals strategy for sustainability, which “welcomes the zero-pollution ambition for a toxic-free environment” and “acknowledges the essential role of the chemicals sector in reaching the multiple targets of the Green Deal.” The resolution also called on the commission to “define the concept of and criteria for the ‘essential use’ of hazardous chemicals.” The resolution comes on the heels of 10 European Union Member States advocating for the elimination of substances of concern for non-essential use. The commission is expected to adopt a final communication on the chemicals strategy in October. IPC Contact: Alison James.
 
Chemical Regulation Spurs Substitution of SVHCs, ECHA Says: A new report from the European Chemicals Agency (ECHA) says the Registration, Evaluation, Authorization and Restriction of Chemicals (REACH) directive has been the most powerful force pushing companies to replace harmful chemicals with safer alternatives. Customer demand, corporate sustainability policies, and corporate image have also had a notable impact on companies’ substitution efforts. However, companies face many challenges in such efforts, especially those of a “technical nature.” To overcome these barriers and facilitate the substitution process, the ECHA suggests trade associations and regulators establish collaborative networks across supply chains and organize events where companies can share experiences and best practices. IPC Contact: Alison James.

New Substances Added to the SVHC Candidate List: On June 25, the European Chemicals Agency (ECHA) added four new substances to the Registration, Evaluation, Authorization and Restriction of Chemicals (REACH) Candidate List of substances of very high concern (SVHC). One in particular, 2-methylimidazole (CAS number 693-98-1), is used in electronics manufacturing as a hardener for epoxy resin systems for semiconductor potting compounds and soldering masks and as a component of numerous polymers including epoxy resin pastes. Beginning in January 2021, companies will need to notify the ECHA’s upcoming Substances of Concern in Products (SCIP) database if they have products containing SVHCs. IPC urges companies to check their legal obligations relating to the safe use of these substances. IPC Contact: Kelly Scanlon.

Commission Asks for Feedback on Impact of REACH Registration Deadline: The European Commission launched a survey to gain a better understanding of the impact of the final Registration, Evaluation, Authorization and Restriction of Chemicals (REACH) registration deadline on businesses. The survey seeks feedback on the costs and benefits of the registration exercise, which began in 2018. The questions are intended for businesses who registered chemical substances and stakeholders with experience in the process. The survey will close on August 10. IPC Contact: Alison James.

Thailand Publishes Online Existing Chemical Inventory: Thailand’s Department of Industrial Works (DIW) recently published a new inventory of existing chemicals. While further details of obligations for the listed chemicals are yet to be confirmed, it is likely the inventory will be associated with the upcoming Chemical Substances Act, which has been proposed to replace Thailand’s current Hazardous Substances Act. Chemical regulation in Thailand is currently transitioning from “hazard-based to risk-based," and “the development of a national chemical inventory is an essential step needed in the country’s establishment of its new chemical law.” IPC Contact: Kelly Scanlon.

Interested in Chemical and Product Regulations in Asia? Please check out these new white papers from IPC on evolving chemicals regulations in China, Japan, and South Korea. These papers provide a detailed look at the history of the policies, recent regulatory updates, and the regulatory trends in the respective countries. IPC Contact: Kelly Scanlon.

 

EUROPEAN UNION

Germany Outlines Council Presidency Priorities to European Parliament: Over the last week, German government ministers began briefing the various European Parliament committees on the priorities of Germany’s presidency of the European Council, which began on July 1. Addressing the Committee on Internal Market and Consumer Protection (IMCO), German Economic Affairs and Energy Minister Peter Altmaier affirmed support for the European recovery plan to emerge from the coronavirus pandemic. Justice and Consumer Protection Minister Christine Lambrecht said the German presidency would aim to protect consumers from disinformation and unsafe products and focus on effective enforcement of EU consumer laws. On July 16, Altmaier discussed Germany’s priorities for industrial policy, including small and medium-sized enterprises (SMEs), information and communications technology (ICT), and energy. IPC Contact: Alison James.

 

TRADE AND SUPPLY CHAIN

EU Publishes Guidelines on Brexit Readiness: On July 9, the European Commission published readiness guidelines to ensure businesses, governments, and citizens are prepared for the end of the Brexit transition period on December 31. The communication came as the latest round of talks on a potential trade agreement closed with “significant divergences,” according to the EU’s chief negotiator. The guidelines include a section on trade in goods and related customs issues. The communication warns that increased administrative obligations for businesses will put significant pressure on existing supply chains. IPC Contact: Alison James.

EU Seeks to Expand Retaliation Powers: On July 6, the European Parliament Committee on International Trade (INTA) voted to strengthen the deterrent effect of European Union countermeasures in trade disputes, including expanding the scope of EU retaliation powers to companies that export services and intellectual property. Marie-Pierre Vedrenne, the committee rapporteur, said the vote “sends a signal to all trade partners, the U.S. but also China, to respect the rules of the game,” and that “we [the EU] cannot let a country hit us illegally and unilaterally without us being able to react immediately. We have to make sure that everyone adheres to the rules of international trade.” The draft report may be voted upon by the full parliament within days, after which parliament negotiators must reach an agreement with the European Council on a final version of the amended regulation. IPC Contact: Alison James.

UPCOMING EVENTS

CMMC Will Affect Your Business: What You Need to Do: Virtual event, July 23, 2020. Cybersecurity Maturity Model Certification (CMMC) will be a requirement for more than 350,000 vendors in the Department of Defense (DoD) supply chain. If you do business with the DoD — or if you do business with anyone who does — you will need to become CMMC-certified by passing an independent CMMC audit. Join our webinar on Thursday, July 23 at 2:00 pm EST to understand what you need to do and to start preparing now. IPC Contact: Chris Mitchell.

Interested in Emerging Policies on Flame Retardants in Electronics? Virtual event, July 24, 2020. Please join IPC and Chemical Watch for a free webinar on the latest on flame retardants used in the electronics industry. During this one-hour webinar, speakers including IPC’s Kelly Scanlon, director of environment, health & safety (EHS) policy and research, will discuss the latest scientific and policy developments around flame retardants used in the electronics industry from a European and North American perspective. IPC Contact: Kelly Scanlon.
 
Mid-Year U.S. Economic Outlook: Will Headwinds Curtail the Recovery? Virtual event, July 28. In this free webinar, IPC Chief Economist Shawn DuBravac will examine the prospects for an economic recovery in the coming months, including a deep dive into the latest data, trends, and risks, and what they mean for the electronics manufacturing industry. Register here.

 

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