Dear IPC Members:

I hope all is well with you, your colleagues, family, and friends.

This week’s newsletter includes items on the COVID-19 relief stalemate in the U.S. Congress and congressional action on defense-related legislation featuring several IPC-backed provisions. Meanwhile, in Europe, a fifth round of talks on future trade relations between the United Kingdom and the European Union ended without much progress.
 
We also have a host of global environment, health & safety (EHS) updates for you, including a new IPC blog on our recent flame retardants webinar and a look at the latest legislative updates on PFAS here in the U.S.

Meanwhile, June saw another month of strong demand for printed circuit boards (PCBs) in North America, suggesting growth for electronics manufacturing remains robust, according to IPC Chief Economist Shawn DuBravac. See more of the latest findings from the PCB Statistical Program here.

Also, please continue to refer to IPC’s coronavirus page as it offers valuable resources on worker safety and support, IPC virtual events, IPC advocacy efforts, and much more.

All the best and stay safe,

Chris Mitchell
Vice President, Global Government Relations

TOP OF THE WEEK

Senate Republicans Unveil COVID-19 Stimulus Package: U.S. Senate Majority Leader Mitch McConnell (R-KY) on Monday unveiled a $1 trillion coronavirus stimulus package amid deep disagreements over the contents of the bill. The Health, Economic Assistance Liability Protection and Schools (HEALS) Act contains several provisions of interest to our industry:

• Caps the unemployment insurance bonus at $200 for 60 days, with states to implement a system for 70 percent pay replacement;
• Establishes a liability shield for businesses, schools, and hospitals facing COVID-19 claims;
• Provides no aid to state and local governments; and
• Offers direct aid of $1,200 to adults and $500 per child.

The package also proposes nearly $30 billion for additional defense funding, including more for weapons programs and the defense industrial base. Democrats have decried the additional defense spending and launched a new Defense Spending Reduction Caucus in response. As this newsletter is being finalized, there is no bipartisan agreement in sight, raising fresh uncertainties for the economy. As Congress debates further relief measures, IPC will continue to urge U.S. government officials to adopt measures in IPC’s Roadmap to Economic Recovery. IPC Contact: Chris Mitchell.

Evolving Policies Reframe Discussion on Flame Retardants in Electronics: Last Friday, July 24, IPC partnered with Chemical Watch to discuss the latest scientific and policy developments around flame retardants used in the electronics industry from a European and North American perspective. Topics covered included:

• Emerging legislation and policies regarding flame retardants, including the European Union’s Circular Economy Action Plan;
• Industry standards that shape definitions of flame retardants;
• Industry data and information needed for better decision-making; and
• New innovations and technologies that could affect the need for flame retardants in electronics.

 For more information, check out this IPC blog item, and stay tuned for further IPC educational events on EHS issues relevant to our industry. IPC Contact: Kelly Scanlon.

DEFENSE

House to Vote on Defense Appropriations Measure This Week: The U.S. House of Representatives plans to vote on a six-bill appropriations package, which includes the FY21 defense spending bill, this Friday. The $695 billion bill, expected to pass, was approved by the House Appropriations Committee two weeks ago and will likely include funding for lead-free electronics research and development that IPC has sought. Please let us know if you have any questions or would like more information. IPC Contact: Chris Mitchell.

ICYMI: House and Senate Pass Pro-Electronics Measures in Defense Bills: Last week, the U.S. House and Senate passed separate versions of the annual National Defense Authorization Act (NDAA), with both bills including provisions of significant interest to our industry.

• New requirements for bare and assembled PCBs and PCBAs used in sensitive defense systems to be purchased from trusted U.S. or allied sources;
• An IPC-backed measure requiring the Defense Department to analyze certain materials and technology sectors – including PCBs and other electronics components – for possible action to address sourcing and industrial capacity risks; and
• Funding and tax credits to strengthen domestic semiconductor production.

House and Senate Armed Services Committee leaders will soon begin negotiations to iron out the differences in the two bills. IPC will continue to engage on this legislation and advocate for measures to shore up supply chains for electronics related to essential governmental functions including defense. IPC Contact: Chris Mitchell.

ENVIRONMENT, HEALTH AND SAFETY

Climate a Key Focus of Proposed Democratic Platform; COVID-19 Recovery: Combating the climate crisis and pursuing environmental justice will be focal points of a Democratic administration, according to a draft platform that largely aligns with Joe Biden’s climate and environmental plan. Meanwhile, a coalition of mayors from across the United States recently launched a recovery strategy that prioritizes an equitable and sustainable recovery from the coronavirus pandemic. IPC Contact: Kelly Scanlon.

How to Properly Disinfect Electronic Equipment Amid COVID-19: The International Electronics Manufacturing Initiative (iNEMI) recently published a guide on how to mitigate the risk when disinfecting electronic equipment and assemblies. “Many commonly recommended disinfection substances and/or application methods could potentially cause failures in electronic equipment if the internal electronics were inadvertently exposed to them,” said iNEMI CEO Marc Benowitz. The next time you disinfect your workplace, we want you to do it safely! For more information, check out IPC’s recent blog here. IPC Contact: Kelly Scanlon.

Does Your Company Use PFAS to Make Electronics? Regulators in the United States and the European Union are eyeing chemicals in the per- and polyfluoroalkyl substances (PFAS) class. For the latest U.S. legislative developments on PFAS, check out this new IPC PowerPoint. Please let us know if you use PFAS in your electronics processes and products. IPC Contact: Kelly Scanlon.
 
U.S. Chemical Data Reporting – Still Open! The U.S. Environmental Protection Agency’s Chemical Data Reporting (CDR) submission period remains open through November 30. 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, exemptions; and an improved process for reporting co-manufacturing. Let us know if you have any questions as your company goes through the reporting process. IPC Contact: Kelly Scanlon.

South Korea Seeks to Strengthen Chemical Directive: The South Korean Ministry of Environment announced a new proposal to expand restrictions on the use of hazardous substances in electrical and electronic products, and add new restricted substances to their national chemical directive. The proposed legislation, based on the European Union’s Restriction of Hazardous Substances Use (RoHS) guidelines, aims to minimize potential risks of hazardous chemicals to public health and the environment. 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

EU Leaders Agree on COVID-19 Recovery Plan: After four days of intense negotiations, European leaders reached an agreement on a €750 billion ($857 billion) coronavirus recovery package on July 21. The EU’s new recovery fund, “Next Generation EU,” will be composed of €390 billion ($450 billion) in grants and €360 billion ($416 billion) in loans and will be attached to the new €1.1 trillion ($1.3 billion) Multiannual Financial Framework -- the EU's regular, seven-year budget -- bringing the total financial package to €1.8 trillion ($2 trillion). "It is an ambitious and comprehensive package combining the classical [budget] with an extraordinary recovery effort destined to tackle the effects of an unprecedented crisis in the best interest of the EU," the EU leaders said in a joint declaration. The package will now go to the European Parliament for ratification. IPC Contact: Alison James.

TRADE AND SUPPLY CHAIN

No Brexit Agreement in Sight: The fifth round of talks on a new trade relationship between the European Union and the United Kingdom concluded last week with both sides admitting they were still far from agreement. While the risk of no deal is increasing, Frost said an agreement could still be reached in September, leaving enough time for ratification on both sides and for the U.K. to leave the EU on December 31. Meanwhile, EU leaders agreed on a €5 billion ($5.9 billion) Brexit Adjustment Reserve, offering funds to countries and sectors worst-hit by the U.K.’s departure from the EU, as part of the recent €750 billion ($857 billion) coronavirus recovery plan. IPC Contact: Alison James

Commission Appoints First Chief Trade Enforcement Officer: On July 24, the European Commission appointed Denis Redonnet to the new role of Chief Trade Enforcement Officer (CTEO) for the European Union, an important step in strengthening the EU's implementation and enforcement agenda. As CTEO, Redonnet will help EU exporters gain more value from partner markets and will strengthen the enforcement of sustainable development commitments, particularly regarding climate issues and labor rights. IPC Contact: Alison James.

KEEP IN TOUCH WITH US

Subscribe to IPC Global Advocacy Report: If you’re a member of IPC, manage your e-mail preferences and opt in to receive “Advocacy” updates. If you are not an IPC member – or you’re not sure – please send a note to friends@ipc.org, and our staff will add you to the list.

Follow us on Twitter.

Contact one of us if you have any questions or insights to contribute.

Tell us how government policies affect your business.

See prior editions of Global Advocacy Report.

Explore our IPC Government Relations information online.