By Nicolas Robin, Senior Director, IPC Europe 

Key Summary

• EU and U.S. leaders agreed to pursue WTO reforms focused on unfair trading practices, with concerns centered on China.
• Both sides committed to work toward zero tariffs, zero non-tariff barriers and zero subsidies on non-auto industrial goods.
• An Executive Working Group was created to assess tariff measures and improve commercial exchanges.
• Reactions in Europe varied, with some Member States praising progress and others expressing skepticism due to existing tariffs.

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.

By Nicolas Robin, IPC Senior Director, Europe. 

Key Summary

• ECHA added lead metal to the EU REACH Candidate List due to its reprotoxic properties.
• Suppliers must inform customers when articles contain more than 0.1% lead by weight, applied per article in complex objects.
• Importers and producers must notify ECHA within 6 months of listing and provide updated safety data sheets.
• Lead may move toward Authorization as early as 2021, potentially requiring permission for continued use by 2024.
• IPC will advocate to prevent Authorization or seek exemptions while supporting R&D for lead-free alternatives.

The European Chemicals Agency (ECHA) added lead metal to 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 applicable. 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 an 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.

1. 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.
2. 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.
3. 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 are 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 a 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 the lead cross-commodity platform (September 2018-2019):

• Map out the use of lead across the industry and assess where the risk areas and potential adverse effects are and in which applications substitutions to lead are possible.
• If lead metal were to be prioritized for Authorization, a 90-day 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 of getting funding opportunities for research on lead-free 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.

IPC president and CEO John Mitchell discusses technological advancements in automotive electronics and IPC’s standards development activities that support the automotive industry. https://www.youtube.com/watch?v=PHrZz-OyH-k

IPC D-70 E-Textiles Committee chair Stephanie Rodgers and vice-chair Ben Cooper spotlight just some of the reasons why you need to be at IPC E-Textiles 2018. Stephanie and Ben are members of the IPC E-Textiles 2018 program committee, which has put together a stellar lineup of technologists from the e-textiles space who will provide real-world solutions for merging textiles with electronics. Stephanie and Ben will also kick of the workshop with two interactive sessions: • Textiles and Testing 101 • E-Textile Creations Speedstorming – Who Thinks Up This Stuff? As you can see in their video introduction, IPC E-Textiles 2018 will be a creative, collaborative forum for technologists and innovators to identify solutions, create partnerships and help propel growth for the e-textiles market. And expect a little fun along the way. Register for IPC E-Textiles 2018 View the full agenda and register today. Visit the IoClothes Forum Ben Cooper has created the IoClothes Forum for industry to connect and stay on top of all that’s happening in the world of e-textiles. Visit the forum today to participate in peer group discussions and also to listen to and subscribe to Ben’s podcast, where he interviews thought leaders and innovators. https://www.youtube.com/watch?v=aUODKuslIFk&feature=youtu.be

Key Summary

• Automotive electronics are expanding rapidly due to EVs, autonomous systems, and higher electronics content in vehicles
• IPC’s Automotive Electronics Reliability Forum gathers top experts from major automotive and electronics companies
• Keynotes from Volkswagen and Groupe Renault address advanced package technologies and onboard electronics reliability
• Technical sessions cover surface finishes, material interactions, semiconductor qualification, and high-reliability PCB design
• The event supports collaboration across OEMs, Tier 1 suppliers, PCB manufacturers, and materials partners

Fueled by strong growth in electric vehicles and autonomous cars, and a dramatic increase in electronics content in conventional automobiles and trucks, automotive electronics are crucial components of engine, ignition, and transmission management; entertainment, navigation, diagnostic tools and safety systems. IPC has gathered thought leaders and subject matter experts from leading electronics and automotive companies to discuss the future of automotive electronics design and manufacturing at “IPC Automotive Electronics Reliability Forum,” June 4-5 in Nuremberg, Germany. Andreas Aal, semiconductor strategy and reliability expert at Volkswagen, will open up the forum on June 4 with his keynote, “Challenges of Using Advanced Package Technologies in Automotive Applications.” On June 5, Dr. Maxime Makarov, head of electro-physics at Groupe Renault, will discuss electronics reliability during his keynote, “On-Board Electronics Reliability: Assessing the Need to Revise Conventional Approaches.” During the two-day event, Aal and Makarov will be joined by other automotive and electronics industry technologists from, Continental Automotive, Robert Bosch GmbH, Infineon, Henkel, TTM Technologies, Atotech, MacDermid Enthone, IHS Markit and more, who will provide updates and technical content on such topics as: the automotive electronics market, surface finish and assembly material interactions affecting electronic system reliability and performance, future reliability challenges for new packages, challenges of semiconductor product qualification for extended automotive requirements, and design considerations of high reliability PCBs for high power automotive applications. “IPC’s Automotive Electronics Reliability Forum will allow attendees to build personal relationships with the innovators who are working on tomorrow’s electronics technologies as well as gain first-hand knowledge of the pioneering projects that are putting automotive electronics breakthroughs into practice,” said Philippe Léonard, IPC Europe director. “The forum is not solely about the automotive industry,” adds Léonard — “it’s about technologies, electronics market, thermal energy in PCBs, onboard electronics reliability, and much more. As the forum covers a wide breadth of relevant and timely topics, it is perfectly suited for engineers and technologists representing Transportation OEMs, Tier 1 systems providers, and assembly, printed circuit board and materials partners.” Speaker Laurent Coudurier, combustion team manager at Air Liquide concurs, "As reliability is a major driving force for automotive electronics, it is very beneficial to share developments coming from different industrial sectors involved in the supply chain and contributing to improve reliability of electronic assemblies for cars." For more information or to register for “IPC Automotive Electronics Reliability Forum,” visit www.ipc.org/Automotive-Reliability-Forum.