IPC president and CEO John Mitchell invites industry to join IPC’s Job Task Analysis Committee to help define key roles in the electronics industry and perform industry driven job task analysis for each of these roles. https://www.youtube.com/watch?v=lRBQEjVzYa4

By Nicolas Robin, Senior Director, IPC Europe On July 25, EU Commission President Jean-Claude Juncker and U.S. President Donald Trump struck an agreement on transatlantic trade during President Juncker’s visit to Washington D.C. after three and a half hours of negotiations. Most interestingly for IPC, both parties agreed to work together on a reform of the WTO to address unfair trading practices, including intellectual property theft, forced technology transfer, industrial subsidies, distortions created by state owned enterprises and overcapacity. These priorities have been clearly set having China in mind. The EU and U.S. also committed to work towards zero tariffs, zero non-tariff barriers and zero subsidies on non-auto industrial goods, strengthen their cooperation on energy and establish a dialogue on standards in order to ease trade, reduce bureaucratic obstacles and slash costs. President Juncker resisted US demands to include agricultural products in the scope of products that should be subject to zero tariffs, arguing he did not have the mandate from EU Member States for doing so while stressing the EU would ask for the abolition of the ‘Buy American Act’ in return. In addition, the two sides agreed to immediately set up an Executive Working Group to facilitate commercial exchanges and assess existing tariff measures. This body will be chaired by Commissioner for Trade Cecilia Malmström and the USTR Robert Lighthizer. Both parties pledged to hold off from imposing further tariffs on each other as long as negotiations are ongoing. Yet, no deadline has been set to finalise the negotiations to Juncker’s satisfaction, while this working group is due to finalise its work in the coming months. The view from Europe The news was welcomed by the European Automobile Manufacturers’ Association, which noted this is a step in the right direction towards de-escalation, adding that there are still a number of issues to be worked out. BUSINESSEUROPE, the group representing European employers, voided its support for a reform of the WTO with modern and more effective rules in order to improve the world trading system. Reactions at the Member State level varied, with Germany praising the deal as a breakthrough, while France voicing skepticism, focused on the continuing of “illegal tariffs imposed by the U.S on steel and aluminium”, as well as the closed US public procurement market. Towards a new TTIP? These announcements mark a detente in the transatlantic relationship, which have considerably deteriorated in recent months after President Trump imposed tariffs on nearly all U.S. imports of steel and aluminium, including those from the EU, and threatened to impose a 20% tariff on cars imported from the EU. The EU had responded by imposing retaliatory tariffs on roughly €2.8 billion ($3.3 billion) of U.S. goods, including products like blue jeans, motorbikes, boats and bourbon and by launching legal proceedings against the U.S. in the WTO. President Trump’s sudden openness to compromise seems to stem from the fact that EU, Chinese and Mexican countermeasures have impacted the revenues of U.S. car manufacturers and farmers, who called this week to put an end to ongoing trade wars. The points agreed between the EU and the US (reduced custom duties, bringing technical standards closer through regulatory collaboration and removing bureaucratic obstacles) strongly resembles those of the Transatlantic Trade and Investment Partnership (TTIP), halted after President Trump took office in January 2017. However, the scope of the agreement is limited to industrial goods and does not encompass agriculture and services. Moreover, it is not intended to include a chapter on investments and arbitration tribunals, a point receiving widespread condemnation by NGOs and civil society. In the meantime, questions remain in Europe over the legality of such an agreement, as the European Commission can only engage in trade talks, following a mandate by Member States. There are also questions as to the legal form this agreement will take. Once further elaborated, this transatlantic trade deal will still have to be endorsed by EU trade ministers and voted on by the Plenary of the European Parliament to enter into force. Following up from the July discussions between the two Presidents, Jean-Claude Juncker’s chief trade advisor Léon Delvaux and another senior EU trade official travelled to Washington on 20th August to advance preparations for bilateral trade talks. They sought to agree on the content and scope of the future trade agreement until November, so that actual negotiations can begin afterwards. Officials from different levels may be visiting the United States in the coming weeks. Could this be the beginning of a renewed EU-US trade dialogue? Will the two sides manage to iron out the details of their agreement and find a way to implement them? As the devil is in the details, there are key outstanding questions that could make or break the seemingly new rapprochement in transatlantic trade relations.

IPC D-70 E-Textiles Committee vice-chair Ben Cooper is running a new video series "30 in 30" through his IoClothes Forums. The forum discussions will showcase 30 videos in 30 days on topics that are critical to the continued growth of the smart textiles industry. A new video will be released every day for 30 consecutive days. If your company is developing smart textiles or has smart textiles on its roadmap, you will want to tune in for this “30 in 30” series. The videos series launched Monday July 23, so don’t miss another installment. Sign up for the platform is free. This will instantly give you exclusive access to IoClothes Forums and video series. IoClothes is an online platform dedicated to providing resources needed to build connections across industries that lead to breakthrough innovation in the apparel, footwear and textile industries. Specifically, its focus is enabling the “smart” or e-textile integration into body-worn soft-goods. Also, Ben is one of our key speakers at IPC E-Textiles 2018. Check out the agenda for this workshop and register today.

By Nicolas Robin, IPC Senior Director, Europe The European Chemicals Agency (ECHA) added lead metal on its Candidate List of Substances of Very High Concern (SVHCs), on 27 June 2018, owing to its properties as a reprotoxic substance. What does Candidate Listing mean for IPC Members? Companies may have legal obligations resulting from the inclusion of lead metal in the Candidate List. Candidate Listing means that EU suppliers of articles containing more than 0.1% by weight of lead - including lead-based batteries, architectural lead sheet, engineered lead products and those manufactured with lead containing alloys - must provide information to the recipients which allows for safe use. Note that in the case of complex objects (i.e. objects made up of more than one article joined or assembled together), the 0.1% threshold applies to each article. As a minimum, the information provided by the article supplier must contain the name of the substance, if present above the 0.1% threshold. The information must be provided in writing and free of charge. There is also a requirement to notify ECHA. This notification must be submitted by the importer/producer no later than 6 months after the substance was included in the Candidate List. EU and EEA suppliers of substances on the Candidate List must provide their customers with a safety data sheet (SDS), including relevant exposure scenarios where relevant. Lead producers should already be doing so, but an update is recommended to notify their customers of the inclusion of lead metal in the Candidate list as a Substance of Very High Concern. The obligation to provide a SDS also applies to mixtures including solders and (pre-fabricated) alloys; however, if the mixture does not meet the criteria for classification as hazardous under CLP, the SDS needs only to be provided at the recipient’s request. What are the next steps? The next regulatory step after Candidate Listing is the inclusion of the substances on the so-called Authorization List. Once included on the Authorization List, companies wishing to use the substance will have to apply for application-specific permissions from ECHA. a) 2019: With lead metal included on the Candidate List in June 2018, it could be included in ECHA’s prioritization exercise in 2019, with a formal recommendation likely to be submitted by ECHA to the European Commission the same year. b) 2021: If the REACH Committee of Member State representatives agrees to include lead metal in Annex XIV, the Authorization List, the substance could be added as early as 2021; a transitional period would apply, potentially giving rise to a ‘sunset date’ (after which REACH Authorization would be required to use lead metal, unless exemption applied) in 2024. c) Before 2024: Companies applying for authorization to use lead metal in the EU would need to submit their application at least 18 months before the sunset date to prevent supply chain disruption. Authorization would only be granted if the risks to human health or the environment from the use of metallic lead on its own or in a mixture above the relevant concentration threshold is proven to be adequately controlled or, in the case where adequate control cannot be demonstrated that the financial benefits of continued use outweigh the societal costs of the health and/or environmental impacts and that there are no suitable alternative substances or technologies for the use. What can IPC and its members do? IPC will be engaged in an advocacy campaign in partnership with an Eurometaux/ILA cross commodity platform. The goal of this campaign will be to stop the inclusion of lead in the authorization list, or if not possible to advocate for exemptions. Engage with lead cross commodity platform (September 2018-2019) 1. Map out the use of lead across the industry and assess where the risks areas and potential adverse effects are and in which applications substitutions to lead are possible. 2. If lead metal were to be prioritized for Authorization, a 90-days public consultation will be opened to gather views on transition periods, case studies and examples highlighting where REACH Authorization would lead to regulatory overlap or inconsistency. Data will need to be collected from IPC membership to develop a socio-economic analysis. Focus efforts on R&D funding for substitution: Both ECHA and the European Commission are very keen on fostering R&D efforts on substitution, for which the EU offers a specific budget line. IPC will assess the possibility to get funding opportunities for research on leadfree electronics and has already initiated preliminary contacts with the European Commission service in charge of R&D. If you have any questions or comments please contact me at NicolasRobin@IPC.org.

U.S. Trade Policy and Your Business | June 29, 2018 | 11:00 am EDT As you’ve seen in the news, the Trump Administration has established an aggressive trade agenda, with significant developments occurring almost daily. Many of these developments will impact the electronics industry. For example, an additional 25 percent tariff on more than 800 Chinese products is scheduled to go into effect on July 6. Those tariffs disproportionately target the electronics supply chain. Likewise, new duties and countervailing duties on aluminum will also increase costs for U.S. manufacturers, including the U.S. printed circuit board industry. The IPC Government Relations team is monitoring these developments and weighing in with policy makers. IPC members, please join us for a U.S. trade policy webinar on Friday, June 29 at 11:00 am EDT featuring trade law practitioners Nova Daly and Tim Brightbill of Wiley Rein LLP. They will discuss both the recent or proposed imposition of new tariffs as well as proposed investment restrictions to be announced later this month. This free informational webinar is designed to help you make sense of the dizzying pace of trade developments and the impact these developments may have on your business. IPC members, register now! 

As an industry-driven association, IPC exists to help its member companies innovate, compete, and succeed in the electronics industry. Effective government relations is crucial to our collective success, because many of the policy debates taking place in world capitals have wide-reaching impacts on our industry. That’s why senior executives from top electronics companies recently gathered for “IMPACT Washington, D.C. 2018” to advocate for a pro-growth, pro-electronics policy agenda. During the two-and-a-half-day event, member executives met with leaders of the Trump Administration and members of Congress to share their views on issues including strengthening the defense industrial base; ensuring a skilled workforce; and advancing free and fair trade. Participants met with leaders of the Trump Administration, including: • Andrew Wheeler, Deputy Administrator, Environmental Protection Agency; • Alexander Gray, Deputy Director, White House Office of Trade and Manufacturing; • Ian Steff, Deputy Assistant Secretary for Manufacturing, International Trade Administration; • Eric Chewning, Deputy Assistant Secretary, Office of Military Industrial Base Policy; • Chesley Dycus, Advisor for Defense, Office of the Vice President; • Rosemary Lahasky, Deputy Assistant Secretary, Employment and Training Administration, U.S. Department of Labor; and • Dr. Michael Wooten, Acting Asst. Secretary of Education, Career, Technical and Adult Education (CTE). On Capitol Hill, the group had 25 individual and group meetings with key policymakers, including: • Senator Mark Warner (D-VA); • Senator Lindsay Graham (R-SC); and • Senior staff of four major congressional committees. IPC also arranged for participants to meet one-on-one with their hometown congressional representatives to discuss the local implications of federal policy issues. Attendees had the benefit of background briefings on the political and economic trends that are driving events in DC, from former Congressman Tom Davis of Virginia; former chairman of the White House Council of Economic Advisers Douglas Holtz-Eakin; and top labor lawyer Maury Baskin. IPC also recognized two Senators with the IPC Government IMPACT Award. Senators Joe Donnelly (D-IN) and Todd Young (R-IN) were honored for their leadership roles in supporting a robust domestic electronics industrial base. The two senators serve on key congressional committees and represent the Defense Department’s Executive Agent for Printed Circuit and Interconnect Technology at the Naval Surface Warfare Center in Crane, Indiana – an office that is vitally important to our industry. To see photos of this year’s event, click here. To all who participated, thank you! Your active engagement has already been crucial in advancing our industry’s policy agenda. For example, The Senate FY2019 National Defense Authorization Act (NDAA) includes language that will assess the U.S. defense electronics industrial base and help establish long-term funding and policy direction for the Executive Agent at NSWC Crane. If you missed this opportunity and want to be in the loop on IPC’s government relations efforts going forward, please let us know. We have a robust agenda of follow-up activities, and your participation in those efforts would be welcomed and valuable. Stay tuned for more news from IPC government relations, and we’ll be looking forward to seeing you next year at IMPACT Washington, D.C. 2019!

Today, President Trump announced that he will impose 25 percent tariffs on Chinese imports worth roughly $50 billion. The tariffs, first proposed in April, are the result of a Section 301 investigation that found China’s technology transfer policies had harmed U.S. companies. The first round of these tariffs will take effect July 6 and will target more than 800 products at the heart of the Made in China 2015 initiative, including “industrially significant technologies.” These 800+ products are valued at $34 billion in trade value and come from industries like aerospace, robotics, and automobiles, but excludes most consumer purchased goods like televisions and cellphones. We encourage you to review this list as it includes many tariff codes that the electronics industry uses to import goods. In May, IPC sent a letter to the U.S. Trade Representative warning that the Section 301 action could harm U.S. manufacturers because the proposed tariffs primarily target the supply chains of U.S. companies that are least able to weather cost increases. Please continue to keep us informed about how these tariffs are affecting your businesses so we can align our advocacy goals accordingly. The Trump Administration plans to impose a second round of tariffs valued at $16 billion in trade that were not on the original list proposed in April. This second list will have to undergo public comment and review before being finalized. We will be studying the new list and its likely impact on the electronics industry. China has indicated that it plans to impose retaliatory tariffs in response to increased U.S. duties, and top U.S. trade officials have said the U.S. will respond in kind — raising concerns that a trade war may erupt unless the two countries can negotiate an agreement. U.S. and Chinese trade officials continue to negotiate. The Trump Administration has suggested the new tariffs are designed to ratchet up pressure on China to make concessions. To that end, the President has the flexibility to delay the duty increases up to 180 days depending upon progress in the negotiations. Earlier this year, the U.S. imposed steel and aluminum tariffs on most countries around the world including China. China has already responded with retaliatory tariffs as have other countries. Those tariffs are already being felt by U.S. manufacturers — including those within the electronics industry — that cannot source domestically the steel and aluminum they need. The Trump Administration is also planning to impose new investment restrictions and export controls against China that would curb Chinese acquisition of “industrially significant” technology. An announcement on these new controls is expected by June 30. Contact Chris Mitchell, IPC vice president of global government relations at ChrisMitchell@ipc.org for more information about today’s announcement.