IPC Global Advocacy Report
12/18/2020

Dear IPC Members:

I hope all is well with you and yours.

2021 is less than two weeks away and the U.S. Congress is in the throes of its usual end-of-year rush to complete old business before members depart for the holiday break.

Fresh off the veto-proof approval of the National Defense Authorization Act (NDAA) in both chambers of Congress last week, legislators now are laboring over the annual spending bills and a revived coronavirus recovery bill. Read on below and stay tuned to IPC’s social media accounts for the latest updates.

As always, your voice can help push these priorities over the finish line and keep us on a strong track going into 2021. Head over to the IPC Action Alert Center to get involved, and please let us know if you have any questions and suggestions.

Also, this will be our last issue until the week of January 4. From all of us here at IPC, please have a safe, happy holiday and a happy new year! We look forward to building off our successes in 2021, and we hope you will join us.

All the best,

Chris Mitchell
Vice President, Global Government Relations


TOP NEWS OF THE WEEK

U.S. Spending Package Talks Continue; COVID-19 Relief Imminent: The U.S. Congress has yet to release final versions of its 2021 annual spending bills, including the defense spending bill, and time is running out before the December 18 deadline. Meanwhile, a new coronavirus relief package is also nearing agreement and is likely to be attached to the final government funding bill. The nearly $900 billion package is expected to include smaller stimulus checks and additional federal unemployment insurance, but will exclude aid for state and local governments and business liability protections, according to reporting from Bloomberg. IPC has been advocating for federal officials to take additional actions to support the electronics manufacturing sector and drive the nation’s economic recovery. We will update you as the situation progresses. IPC Contact: Chris Mitchell.

What Does a Biden Administration Mean for U.S. Manufacturing? During an IPC-moderated online discussion this week, Gilbert Kaplan, a former Undersecretary of Commerce for International Trade in the Trump administration, shared his insights on the outlook for U.S. manufacturing competitiveness and what we should expect from the Biden administration, from “Made in America” to investments in advanced technologies, taxes, trade, and regulation. On Biden’s manufacturing plan, Kaplan noted, “it’s the most extensive program on manufacturing I’ve ever seen from any presidential campaign.” While manufacturing policy has generally been an afterthought for most presidents, Kaplan said this seems likely to change with the Biden administration. For further insight, check out my IPC blog on what the incoming Biden administration could mean for electronics. Let us know if you have any questions, suggestions, or want to get involved in IPC’s advocacy work. IPC Contact: Chris Mitchell.

As Supply Chains Reshore, Regional Networks Will be Key to Resiliency: "The future of manufacturing will require industries to reevaluate how their products go from raw materials to consumers' hands,” writes IPC President and CEO John Mitchell’s in his latest op-ed, featured in Supply Chain Drive, on supply chain trends. Also, in case you missed it, the Wall Street Journal published an in-depth analysis of the future of U.S. manufacturing, identifying three major themes that will not only carry manufacturing out of the current doldrums but to new prosperity: a quick recovery from the recession; localization of supply chains, or onshoring; and technological advancements that level the playing field between the U.S. and countries with lower labor costs.” IPC Contact: Chris Mitchell.

COVID-19 Vaccine: How Does the Rollout Affect the Manufacturing Industry? Pfizer, Moderna, and other companies have started, or are preparing, to distribute coronavirus vaccines to U.S. states and territories. We have more questions than answers regarding the roll out of the vaccine, but here’s what we know now:

  1. The Center for Disease Control and Prevention (CDC) and federal agencies will continue to provide guidance on the allocation and administration of the COVID-19 vaccines. IPC will work to keep you abreast of these regulatory notices to understand how best to support your employees getting vaccinated. 
  2. While the federal government is helping to coordinate the distribution of the vaccines to states, governors will determine the allocation of vaccines within their own states. IPC is beginning to communicate with governors about the importance of appropriately prioritizing vaccinations for manufacturing workers.

The federal government, in concert with state and local authorities, are mounting a vaccination program of unprecedented speed and scale. Although many questions about the process remain, IPC will work with you to elicit answers from federal and local authorities to keep our industry operating. For more information, please consult my latest IPC blog. IPC Contact: Chris Mitchell.

ICYMI: IPC Applauds Congressional Approval of Defense Policy Act: Both chambers of the U.S. Congress last week passed the National Defense Authorization Act (NDAA) with a veto-proof majority. The bill includes pro-electronics-industry language sought by IPC, namely new restrictions on the sourcing of printed circuit boards and assemblies for defense electronics. “The pandemic was a big wake-up call,” IPC President and CEO John Mitchell commented in FCW on the push to bring back domestic electronics manufacturing. We now call on President Donald Trump to sign the NDAA into law without delay. Read our full statement here. IPC Contact: Chris Mitchell.

 

IPC ADVOCACY AND YOU

IPC APEX EXPO 2021 Goes Virtual: With safety in mind and facing renewed restrictions around travel and in-person conferences, IPC determined IPC APEX EXPO 2021 will now take place in an all-virtual format and will be held March 8-12. Just as your companies are innovating to overcome the challenges of this pandemic, we are adapting as well. Registration for IPC APEX EXPO 2021 is now open. To view the schedule at a glance and exhibitor list, visit www.ipcapexexpo.org. IPC Contact: Chris Mitchell.

Pledge to Stay Involved in IPC Advocacy in 2021: 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. With the November elections now behind us, our 2021 advocacy efforts are just beginning. Please click here to pledge to stay involved in IPC advocacy. IPC Contact: Ken Schramko.

 

QUOTE OF THE WEEK

Europe has all it takes to diversify and reduce critical dependencies, while remaining open. We will therefore need to set ambitious plans, from design of chips to advanced manufacturing progressing towards 2nm nodes, with the aim of differentiating and leading on our most important value chains. Today’s highly welcomed joint effort is an important leap forward - it will pave the way to the launch of an industrial alliance.”
– European Commissioner for Internal Market Thierry Breton on the newly released European initiative on processors and semiconductor technologies.

 

DFEENSE AND SECURITY

Military Prowess Requires an Embrace of Lead-Free Electronics: The U.S. defense community’s continuing reliance on lead-based electronics – and the widening gap between the commercial and defense markets – puts the military’s technological superiority and readiness at risk, IPC President and CEO John Mitchell explains in a recent op-ed featured in both Defense News and Military Times. IPC calls on the U.S. Congress to make a greater investment in research and development into lead-free electronics for the defense industry. Give the op-ed a read, and let us know what you think. IPC Contact: Chris Mitchell.

 

EDUCATION AND WORKFORCE

IPC Student Chapters Gear Up for Competitions Amid COVID-19: With in-person events still months away, the IPC Education Foundation (IPCEF) has had to get creative to deliver competitions and team-based projects to members of the 38 IPC student chapters across the United States. This has been a challenge for an industry that relies so heavily on physical products. Check out this recent article from IPC Education Program Manager Aaron Birney for more on how the IPCEF is handling this challenge. IPC Contact: Charlene Gunter.

U.S. House Passes Apprenticeship Legislation: On November 20, the U.S. House of Representatives passed The National Apprenticeship Act of 2020, which would amend and expand the national apprenticeships system by authorizing nearly $4 billion in spending over the next five years on registered apprenticeships that are approved by the Department of Labor. Although expanding apprenticeships has bipartisan support, only 20 Republicans voted in favor because the bill does not include funding for President Donald Trump’s Industry-Recognized Apprenticeship Programs. With limited time left on the legislative calendar and only weak Republican support, Senate action on the bill is considered unlikely. Please let us know if you have an interest in promoting apprenticeship programs. IPC Contact: Ken Schramko.

 

ENVIRONMENT, HEALTH AND SAFETY

Does Your Company Produce, Import, or Supply Products to the EU? If so, Substances of Concern in Products (SCIP) database requirements may apply to your company, and the deadline to comply with the information obligations is now just a little over two weeks away. The obligations require manufacturers across supply chains to disclose significant new information about chemicals used in their products, with a potentially sizable impact for manufacturers in the U.S. and around the world. Under the current timeline, the database is set to come into effect on January 5, 2021, just 10 weeks after it was unveiled for the first time. For more information on the SCIP database and how it can impact your company, check out this IPC resource page. Let us know if you have any questions about the notification process. IPC Contact: Kelly Scanlon.

ECHA Calls for Evidence on Chemical Common to Plastics and Resins: The European Chemicals Agency (ECHA) has requested comments and evidence regarding a possible restriction on Bisphenol A (BPA) and structurally related bisphenols of similar concern for the environment. Information on the chemical’s “life cycle, emissions to the environment, and the use in articles and occurrence in polymers" is also of interest. The deadline for providing input is January 15, 2021. Is BPA essential to your electronics-related processes? Do you have any data or information to submit to ECHA? Please us know. IPC Contact: Kelly Scanlon.

EC’s Pollution Plan to Address PFAS: According to European Commission official Cristina de Avila, who spoke at a recent international conference on per- and polyfluoroalkyl substances (PFAS), the upcoming zero pollution action plan will address PFAS and will, unlike the chemicals strategy for sustainability, focus on “remedy rather than prevention.” The action plan is expected in Q2 of 2021. Expect European legislators to get tough on PFAS in 2021. As always, please feel free to share any data and information that would be helpful to industry advocacy as we continue our PFAS journey. IPC Contact: Alison James.

What Do EU Citizens Think About Nanomaterials? European Union citizens are demanding clear labelling of everyday products containing nanomaterials, according to the results of an EU Observatory for Nanomaterials (EUON)-commissioned survey. The survey also highlighted rising awareness about the risks and benefits of products containing nanomaterials, a trend that is expected to continue. Meanwhile, the European Commission has promised to further regulate nanomaterials in its chemicals strategy for sustainability and has committed to finalize the nanomaterials review by the end of 2021. IPC Contact: Alison James.

What OSHA's Increasing COVID-19 Inspections Mean for You: As the coronavirus pandemic has persisted, the U.S. Occupational Safety and Health Administration (OSHA) has increased its worker health protections and the number of workplace inspections, resulting in more citations for violating certain standards. This recent OSHA publication provides all the latest information on the frequently cited standards related to COVID-19; we encourage you to use it to benchmark your company’s practices and protocols. Check out a new blog from IPC’s Kelly Scanlon for more information on how to navigate these obligations. The health and safety of our members remains a top priority for IPC. IPC Contact: Kelly Scanlon.

EPA Moves Forward on Risk Evaluations of DIDP and DINP: On November 27, the U.S. Environmental Protection Agency (EPA) announced the availability of the draft scope documents for Toxic Substances Control Act (TSCA) risk evaluations of diisodecyl phthalate (DIDP) and diisononyl phthalate (DINP). DIDP and DINP join 20 high-priority chemical substances under evaluation. However, these phthalates were added at the request of manufacturers as opposed to the agency’s TSCA prioritization process. Both DINP and DIDP phthalates may be used as a plasticizer in polyvinyl chloride in addition to other applications that may affect electronics manufacturing. The comment period on the draft scope documents is open until January 11, 2021. Let us know if you have any thoughts on this. IPC Contact: Kelly Scanlon.

EPA Takes Next Steps on TSCA Fees: On November 25, the U.S. Environmental Protection Agency (EPA) released an updated list of companies subject to the Toxic Substances Control Act Fees Rule. This list is expected to be final, with the first payments expected in January 2021. IPC also expects to see a notice of proposed rulemaking regarding amendments to the fees rule soon; we will share all the relevant details with you upon its release. IPC is staying engaged throughout the rulemaking process and has recently met with both the EPA’s fees rule team and the Office of Management and Budget to share the electronics industry’s concerns regarding the existing fees rule. As always, we welcome your insights on fee obligations and what it would mean for your business. IPC Contact: Kelly Scanlon.

EPA Moving Toward Key Deliberations on Toxic Chemicals: The U.S. Environmental Protection Agency (EPA) is approaching a critical phase of deliberations under the Toxic Substances Control Act, and the next steps in the process will have major ramifications for electronics manufacturers. Currently, the EPA is nearing the completion of 10 risk evaluations, and is just beginning evaluations of an additional 20 high-priority chemical substances. The EPA is seeking input from IPC and our members, and our expertise will be critical in forging smart solutions that protect human health and the environment and enable our industry to thrive. If you have information that is relevant to these proceedings, we need to hear from you. Check out this IPC blog for more information. IPC Contact: Kelly Scanlon.

U.S. Chemical Data Reporting Deadline Extended through January: The U.S. Environmental Protection Agency (EPA) is extending the Chemical Data Reporting submission period through January 29, 2021. The CDR rule requires manufacturers and importers of certain chemical substances listed under the Toxic Substances Control Act 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.

 

EUROPEAN UNION

EU Member States Join Initiative to Strengthen Electronics Industry: Eighteen European Union Member States signed a joint declaration on December 7 to establish a European initiative to “foster research and development across the entire [electronics] technological chain, from semiconductor manufacturing to the assembly of electronics and embedded systems,” according to reporting from TechSpot. The declaration, which paves the way for the launch of an upcoming industrial alliance on processors and semiconductors, also commits to providing upskilling and reskilling opportunities for workers. Let us know if you have an interest in tracking this initiative along with us. IPC Contact: Alison James.
 

IPC Members Gear Up for New Competitive Landscape at IMPACT Europe 2020: Senior executives from across the European electronics manufacturing value chain on November 18-19 met virtually with European Commission officials to advocate for pro-industry policies in a dynamic regulatory landscape. IPC’s IMPACT EUROPE 2020 came at a critical time, with the European Union ramping up consideration of new policies affecting international trade, industrial strategy, environmental policy, and corporate conduct. To all who participated, thank you for your active engagement and for helping to make this event a success! To those of you who missed this opportunity but would like to learn more or become involved, please contact Alison James, IPC’s Senior Director, Europe, and read a full recap of the event here.

 

TRADE AND SUPPLY CHAIN

U.S. Treasury Department Designates Vietnam as Currency Manipulator: On December 16, the U.S. Treasury Department released its long-awaited report on the foreign currency exchange policies of U.S. trading partners and determined that Vietnam and Switzerland met the criteria to be designated as currency manipulators. For companies conducting business in Vietnam, this designation is concerning. It comes amid an ongoing Section 301 investigation launched by the U.S. Trade Representative in October alleging that Vietnam was manipulating its currency and could be subject to increased tariffs on imports. IPC will continue to monitor the situation and will provide updates as we have them. For more information, read a new IPC blog here. IPC Contact: Chris Mitchell.

U.S.-China Trade Relations Remains Rocky: Following the breakdown in bilateral talks earlier this year, the United States and China continue to engage in a tit-for-tat trade dispute. In 2020 alone, the Trump administration has taken 159 policy actions aimed at “countering China's growing power.” On November 12, Trump signed an executive order barring Americans from investing in Chinese companies that support China’s military, with Trump insiders signaling that there are more punitive actions against China to come. Meanwhile, the U.S. Department of State recently issued a report asserting that China is seeking to displace U.S. leadership and is “a mounting challenge to free countries that adhere to the international, rules-based system.” IPC will continue to monitor all developments between the two nations, including the posture of the incoming Biden administration. IPC Contact: Chris Mitchell.

 

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