IPC Global Advocacy Report
10/9/2020

Dear IPC Members:

IPC is geared up for a busy fall!

We are now less than 30 days away from the U.S. elections, and no matter how they turn out, there will be major ramifications for our industry in the U.S. and worldwide. What will it mean for your business? Click here to pledge to vote and stay involved in IPC advocacy after the election, and then plan to join our November 4 online discussion of the election results. 

In Washington, the debate over a new economic relief package has taken an unexpected turn. See TOP OF THE WEEK below.

In Europe, leaders are pushing for more “strategic autonomy” from the rest of the world, with specific mention of cultivating more electronics manufacturing; France is inviting proposals for public investments in the industry. Read the new IPC Blog by IPC’s Alison James.

We are also tracking a spate of new environmental regulations in South Korea and Taiwan; see ENVIRONMENT, HEALTH AND SAFETY below. And in case you missed it, IPC’s Kelly Scanlon explained to Chemical Watch why understanding where chemicals are used in the value chain is one of her top priorities. Read the article.

What are your top government policy concerns as we position IPC for influence in 2021? Please take our five-question survey or drop us a line. 

All the best and stay safe,

Chris Mitchell
Vice President, Global Government Relations


TOP NEWS OF THE WEEK

Will We See a New Coronavirus Relief Package? The on-again, off-again coronavirus relief discussions continued this week, with U.S. President Donald Trump abruptly halting all negotiations on Tuesday, only to change course hours later with calls on Congress to pass individual relief measures, including additional aid for airlines, an extension of the Paycheck Protection Program, and direct payments to individuals. It is anyone’s guess as to where the talks will go next. IPC has called for a recovery package with pro-manufacturing provisions, and we will keep you updated as negotiations continue. IPC Contact: Chris Mitchell.

 

IPC ADVOCACY AND YOU

Join IPC’s Pledge to Vote and Stay Alert on Advocacy Issues: The IPC Government Relations team is composed of experienced professionals working for you year-round. But our success depends on awareness and participation from IPC members like you. Please click here to pledge to vote in the U.S. elections and stay involved in IPC advocacy after the election. Then, plan to join IPC on Nov. 4 for a post-election analysis and discussion. Our friends Charlie Black and Scott Pastrick of Prime Policy Group – experienced insiders from both sides of the aisle – will share their insights on which issues and leaders are likely to come to the fore in 2021. Register now! IPC Contact: Ken Schramko.

And Speaking of the 2020 Elections: The IPC Political Action Committee (IPC PAC) serves as the collective voice of the industry. The IPC PAC pools our campaign contributions and supports pro-manufacturing federal candidates in both major parties. IPC invites you to learn more by visiting the IPC PAC website and filling out a prior authorization form. This form does not obligate you or your employees to support the IPC PAC; it simply authorizes us to send you information. Please note that a company can only authorize one association PAC per year; and the form must be signed by someone with the authority to do so, generally the CEO or another C-level executive. IPC Contact: Ken Schramko.
 
Are IPC’s Positions Dictated by Politics? You asked and he answered; IPC President and CEO John Mitchell recently took part in I-Connect007's “Just Ask” series, and to answer that first question: “IPC abides by a relatively simple principle. IPC only advocates for priorities that we would be willing to pursue in any other part of the world. Our goal is to empower our members to support policies that benefit them.” Check out John’s answers on other topics including the need to cultivate young engineers, opportunities in Asia and North America, and future tech. Then delve deeper in John’s column series, “One World, One Industry.” IPC Contact: John Mitchell.

 

DFEENSE AND SECURITY

U.S. Defense Bills Would Bring Greater Resiliency and Security to Electronics Supply Chains: The U.S. House and Senate versions of the annual National Defense Authorization Act include bipartisan provisions to bolster the resiliency and security of the electronics manufacturing ecosystem by requiring printed circuit boards and PCB assemblies used in defense systems to be acquired from trusted sources. Recently, several groups, including the U.S. Chamber of Commerce and Aerospace Industries Association, told Congress the measures would be overly restrictive and drive up costs. IPC responded to the opponents in this blog. High-level talks over the language occurred last week, and a resolution is expected shortly after the U.S. election. IPC will continue to 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

EPA to Review Risks of D4 Under TSCA: The U.S. Environmental Protection Agency has granted a chemical manufacturers request to conduct a risk evaluation of octamethylcyclotetrasiloxane (D4), which may used in the manufacturing of computer and electronic products, under the Toxic Substances Control Act.  D4 joins two phthalates, di-isodecyl phthalate and diisononyl phthalate, as the third manufacturer-requested risk evaluation. If you have information about its use and its criticality to the manufacturing process, please let us know. IPC Contact: Kelly Scanlon.

Ten European Countries Call for Ambitious Chemicals Strategy: The European Commission is working on a new Chemicals Strategy for Sustainability, and on September 29, the environment ministers of 10 countries called on the commission to deliver “an ambitious and long-term chemicals strategy that will...enable a sustainable toxic-free circular economy.” The ministers’ requests included accelerating the substitution and phase-out of chemicals of concern; measures to drive industry to develop safe-by-design chemicals; addressing issues of concern such as endocrine disruptors, combination effects, and per- and polyfluoroalkyl substances (PFAS); and more. The final strategy is set to be released on October 14. IPC Contact: Alison James.

No Delay in SCIP Implementation: On September 24, despite urging from IPC and others, the European Chemicals Agency (ECHA) announced that that the Substances of Concern in Products (SCIP) database will formally open during the last week of October as originally planned. At this point, the ECHA has ruled out the possibility of a deadline extension and encouraged companies to continue their preparations. Under the current timeline, the database is set to come into effect on January 5, 2021 despite the absence of a usable, final SCIP database today. IPC recently joined with 40 other industry groups in requesting a delay in implementation and asking for a full impact assessment here. IPC’s advocacy on this issue will continue. IPC Contact: Alison James.

Soldering Flux Chemical Facing Regulation from ECHA: The European Chemicals Agency has proposed tetraethylene glycol dimethyl ether (CAS 143-24-8) be added to the Registration, Evaluation, Authorization and Restriction of Chemicals (REACH) Candidate List of substances of very high concern. The chemical is used in the manufacturing of soldering fluxes and solder pastes used in electronic equipment. The public comment period on the proposal runs until October 16. Let us know if you have any questions or input. IPC Contact: Kelly Scanlon.

EC Considering Extending REACH Requirements to Polymers: The latest draft Chemicals Strategy for Sustainability confirms that the European Commission is actively considering extending the registration requirements under Registration, Evaluation, Authorization and Restriction of Chemicals (REACH) to polymers. According to a recent study, an estimated 33,000 polymers could be targeted. Meanwhile, on September 11, an expert group advising the commission on this matter held its first meeting, discussing effective grouping, identification, and registration of chemicals. The group’s proposal will likely be published by 2022. How would this potential move impact your business? IPC Contact: Alison James.

EC Launches Consultation on Sustainable Products Initiative: On September 14, the European Commission opened a consultation on its Sustainable Products Initiative, which “will establish minimum sustainability and information requirements for products sold in the European Union,” according to reporting from the National Law Review. Notably, the initiative, which will also revise the Ecodesign Directive, plans to address the presence of harmful chemicals in electronics and ICT equipment, among other products. The commission is expected to present a legislative proposal by Q4 of 2021. The feedback period will close on November 2. IPC Contact: Alison James.
 
EPA Takes Next Steps on TSCA Risk Evaluations, Fees: The U.S.  Environmental Protection Agency (EPA) recently released the final list of businesses subject to fees for risk evaluations on the 20 high-priority substances listed under the Toxic Substances Control Act (TSCA) Fees Rule. Businesses on the final list must notify the EPA regarding their intention to join consortia to pay fees that defray the costs of risk evaluations. At the same time, the EPA released the final scope documents for the risk evaluations of the 20 high-priority substances. These documents outline a three-year process for determining unreasonable risk for various conditions of use of high-priority substances. IPC has already engaged with the EPA during the review period for the draft scope documents on Tetrabromobisphenol A and formaldehyde, and we will be reviewing all of the final scope documents to determine their applicability to the electronics sector. We welcome your review and insights on the use of these chemicals and the fee obligations. IPC Contact: Kelly Scanlon.

Upcoming Chemical Regulations of Concern in Asia: There are a host of upcoming chemical regulations in Asia that have potential ramifications for the electronics industry. In South Korea: 

  • Effective October 22, a technical safety standard for plastic products will be implemented. Concentrations of lead, cadmium, benzyl butyl phthalate, dibutyl phthalate, and Di(ethylhexyl) phthalate in synthetic resin product will be limited.
  • On July 1, 2021, the second list of 468 priority control substances, including furan and lead acetate, comes into effect. All substances must be reported.
  • December 31, 2021 is the registration deadline for carcinogenic, mutagenic, or toxic to reproduction substances.

In Taiwan:

  • On January 1, 2021, certain products containing mercury will be restricted from importation, in line with an international agreement which aims to gradually reduce global mercury pollution. Products restricted include switches, relays, high-pressure mercury lamps, and measuring devices such as barometers and thermometers.

Please contact us if you have any questions about these upcoming chemical regulations, and check out IPC’s white papers on evolving chemicals regulations in China, Japan, Singapore, South Korea, Taiwan , and Thailand. IPC Contact: Kelly Scanlon.


EUROPEAN UNION

“Policy Going Forward Will be Viewed Through the Lens of Recovery”: Interested in what’s happening in IPC Europe? The IPC Blog staff recently chatted with Alison James, IPC’s senior director for Europe, about the bloc’s response to the coronavirus pandemic, as well as other issues facing our industry, from the “Green Deal” to chemicals regulation to supply chain resiliency. Read the full blog post here, and reach out to Alison if you have any questions.IPC Contact: Alison James.

EU Leaders Affirm Importance of Bloc’s Strategic Autonomy: European Union leaders affirmed the bloc’s belief that “achieving strategic autonomy while preserving an open economy is a key objective of the Union,” at the recent European Council summit held October 1-2. Leaders noted that the “EU must pursue an ambitious European industrial policy to make its industry more sustainable, more green, more competitive globally and more resilient,” and called on the European Commission to identify and address various strategic dependencies by diversifying production and supply chains, “especially for microprocessors,” as well as by fostering production and investment in Europe. The council plans to further address strategic autonomy and industrial policy during the March 2021 summit. Check out a new IPC blog for more information here. IPC Contact: Alison James.
 
French Recovery Plan Includes Electronics Manufacturing Among Strategic Industries: On September 3, France unveiled a €100 billion ($118 billion) recovery plan aiming to fuel investments in the reshoring and strengthening of key industrial sectors, including electronics manufacturing. To help accomplish this, on August 31, France announced a call for specific investment proposals. Projects aimed at strengthening the capacity of electronic manufacturing companies to respond to crisis situations will be given priority. Companies can submit applications until November 17. Read the new IPC blog for more information, and let us know your thoughts. IPC Contact: Alison James.

EC Launches European Raw Materials Alliance: On September 29, the European Commission launched the European Raw Materials Alliance (ERMA) as part of an “action plan” designed to secure Europe’s access to critical raw materials. The alliance will seek to increase the European Union’s strategic autonomy in metals and rare earths used for batteries, electric and electronic devices, and more. Currently, the EU is largely dependent on imports for many raw materials and can be exposed to vulnerabilities along the supply chain, as the commission outlined in a September study. IPC Contact: Alison James.

 

TRADE AND SUPPLY CHAIN

Decoupling: Separation or Divorce? Here in the United States, the Trump administration has recently been encouraging U.S. companies to leave China and remove Chinese products from their supply chains, while also blocking Chinese investment in the U.S. The dilemma for U.S. companies, particularly in the ICT sector, is that China is simultaneously their best customer and their biggest threat. Experts believe “decoupling” is likely to continue regardless of possible changes in leadership on both sides. Read more on this issue from our friends at the Center for Strategic and International Studies and let us know your thoughts. IPC Contact: Chris Mitchell.

“Demand is Anything but Certain”: On September 22, IPC Chief Economist Shawn DuBravac released IPC's September Economic Outlook Report. The industry continues to appear to have weathered the pandemic rather favorably, with production up in recent months and positive on a year-over-year basis in both the United States and Europe. However, DuBravac cautioned that “economies are extremely fragile right now, and any policy blunders will stymie the recovery.” Please let us know if and how you use this research and what else you would like to see from IPC. IPC Contact: Shawn DuBravac.

 

UPCOMING EVENTS

The 2020 U.S. Election Outcome – What Does It Mean for Your Business? Online, Nov. 4. Join IPC on Wednesday, November 4, the day after Election Day, for a post-election analysis and discussion with our friends Charlie Black and Scott Pastrick of Prime Policy Group. Register now! IPC Contact: Ken Schramko.

IPC IMPACT Europe: Virtual, By Invitation, Members-Only Event, November 18-19. IPC IMPACT Europe is our opportunity to connect with EU policy makers, learn about current policy priorities, and discuss how these changes may impact our industry. IPC Contact: Alison James.

IPC APEX EXPO Moved to March: With safety in mind and facing new considerations around conferences and travel, IPC decided to move IPC APEX EXPO 2021 to March 6-11. Just as your companies are innovating to overcome the challenges of this pandemic, we are adapting as well. Mark your calendars and watch for more details coming soon.

 

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