Document 8O2022x47NdNODKZkGL4YJzye

CHEMICAL MANUFACTURERS ASSOCIATION Exhibit G REPORT TO THE BOARD OF D4RECTORS BY THE INTERNATIONAL AFFAIRS 0ROUP PRESENTED BY GEORGE S. DOMINGUEZ, CHAIRMAN < ft n i j. September 8, 1980 Pebble Beach, Californ ia T I 1 2- - These issues must be cons idered in terms of the USA chemical industry's vital economic impo rtance to this country, its immediate neighbors and its trading partners throughout the world. It foli0ws that any real or potential threat to this importance, including non-tariff trade barriers created by national health and environ mental legislation, must be perceived and resolved promptly. The net annual USA trade deficit of $25 to $35B has persisted since 1975, but the favorable annual chemical trade surplus in this period has moved from $4 to $1QB and may con tinue to increase for a time, for a variety of reasons. This gain is differential -- export 3 and imports to and from all global sectors have been incre asing, albeit at widely different absolute levels. There are signs, however, that the major surplus in U.S. chemical trade could shrink in the face of escalating costs for energy and feedstocks. Ev&n in 1979 imports of benzenoids topped $1B. EEC data show that over the last two decades Western European manufacturers and, in some cases Japanese, have displaced competetive USA manufacturers in rank order by sales. Similar trends appea.r in commercial banking, metal manufacturing, automotive and food products, less so in pharmaceuticals. The EEC's Chemical Industry Committee publishes its "Annual Review of the Chemical Industry" (based in part on the United Nations Monthly Bulletin of Statistics) showing country-by-country, and (major) product-by-product statistics for global exports and imports, reflecting the truly major scale of this economic activity. Clearly the reasons for these changes are many and inter acted. Several of these are described in detail in the 1979 U. N. report on "The Structure and Behavior of Enterprises in the Chemical Industry and Their Effects on the Trade and Development of Developing Countries." The role of regulations CMA 044660 REPORT TO THE CMA BOARD OF DI RECTORS Presented By George S. Dominguez Chairman, International Affai rs Group September 8, 1980 LIST OF DOCUMENTS 1. GROUP STRUCTURE & GROUP PROFILE Membership Task Groups Rapporteurial Task Groups with IEFIC Other Monitoring Responsibilitias 2. INTERNATIONAL AFFAIRS GROUP POLICY STATEMENT As approved by CMA and SOCMA Boards 11/19/79 3. ACTION PLAN TO SUPPLEMENT POLICY STATEMENT ( '79-183) As approved by CMA and SOCMA Boards 11/19/79 4. COMMENTS ON FIVE-YEAR PROPOSED ACTION PLAN ( ' 8Q-'tt4) 5. SPECIFIC IAG OBJECTIVES NOT MET 6. CHRONOLOGICAL HIGHLIGHTS OF IAG ACTIVITIES 7. THE INTERACTION OF THE CHEMICAL INDUSTRY WITH REQUIRE MENTS OF NATIONAL HEALTH AND ENVIRONMENTAL LAWS 8. CONCLUSIONS FROM FIRST YEAR'S OPERATION OF IAG 9. RECOMMENDATIONS T itflMfcil 1 v> CMA 044661 * 11 INTERNATIONAL AFFAIRS GROUP STRUCTURE International Affairs Group Chairman: G. S. Dominguez Staff Executive: G. W. Ingle --' -- -- Steering Task Group " ' Chairman: G. S. Dominguez Staff Executive: G. W. Ingle ------ |Further International Contacts Task Group Chairman: E. B. Poliak Staff Executive: G. W. Ingle Meetings Task Group Chairman: G. S. Dominguez Staff Executive: G. W. Ingle Rapporteurial Task Groups (with CEFIC) on Selected Health and Environmental issues (Details attached) CMA 044662 GROUP PROFILE Mission: o Communicate with associations, members and related organizations world-wide, on chemical health and environmental concerns. Identify, evaluate with appropriate information, o and reduce chemical risks in least disruptive and socially responsible manner. 0 Evaluate economic effects of such concerns and develop bases for rationalizing national requirements creating such effects. f'1 - 11 B - 11/79 D - Special Group Mission: o Determine major LAG aspects -- identity, structure, priorities; evaluate performance and improve initiatives and responses. M-6 B - 5/80 D - 6/81 Review Mission: Determine priority of further international o contacts. M-2 B - 11/79 D - 6/81 Review Mission: Prepare meetings of LAG with other associations. o M-4 B - 11/79 D - 6/81 Review Mission: O Articulate national positions and bases for rationalizing differences among these. M -`uSe group) 2-4 KEY M - Number of Members B - Date of Inception Q = Sunset Date B - 11/79 D - 6/81 REVIEW CMA 044663 STATUS OF LflG/CU-'IC AHAl.YSIJS CT SICHIFlCfttn* ISSUES IN TSCA/HtlC nmuinmmrS 6/25/UO Name of Issue Prior Designations UG/CEFIC Scope Rapporteurs IAG/CEFIC Latest Position Paper(s) Status; 6/30/80 Liaison Organizations 1. Principles of Harmonization a. 7. 2. TESTING a. Global Priority System for Selecting Sub stitutes for Test b. 3. b. Good laboratory Practices h., i. 8. c. Test Proposals - h., i., Specific 1, 8, 9. Protocols Risk/Benefit of Harmonization of Requirements Limits to Acceptability and to Adierence to Concept that Harmonization per se is Ultimate Goal K. A. Hochschwender/ M. J. Salamltou KA1I/HJS 3/3/00 HJS/KAII 1/20/80 Aide-Memoire assigned 4/16/80, to lielp rappor teurs identify aspects to be harmonized OECD, UNEP, WHO, BIAC, CEFIC Identify Mechanisms for International Priority Listing for Existing Clieral- cala to be Tested, for Review by CMA/ CEFIC, Other Industry Groups T. W. Moaney/B. Broecker a. E. II. Blair/ B. Broecker/ A. Rodeyns EI1B/GWI 12/11/79 DIB Summary Responsibi11ty assigned 4/16/80, to revise scope, det'n. Iiow far IAQ/CEFIC siiould join in selection pro cesses of indi vidual gov'ts. OfJCD, CROC, Focnoc, JI-7TOC, CUT, BIAC, CEFIC Monitor, Review and Gcranent on OECD, EPA Proposals cf. D. D. MoCollister (BIACJ/P. De Reeder DCM 3/31/80 3/25/80 EK 2/27/80 Give general Bup|X)rt to OECD's reoanneniation, so long as detail or specificity is not increased DITTO As with Gif's, with Stress on Retention of Provisions for Flexibility, (Espe cially for Base Set and Step-Sequence Testing in EEC Directive, Not Vet Developed Under TSCA.) cf. C. W. Unland/ E. Knuesli/M. J. Flux CMU/BB 2/22/80 BB/CWU 3/17/80 EK/CMU 2/29/60 PUJR . 2/29/80 HJF 2/26/80 Require further study DITTO S 9 9 tt0 Name of Issue Prior Designation IAG/CEFIC Scope Rapporteurs IAG/CEFIC 2. USTMi (oon't) d. COst-Sharing and c. 2. lie inhursement Coordination of Testing Activities Among Oaipanies and Other Institutions, and Distribution of itesults and Conclusions of. C. W. Smith 11. W. Marquart/ T. Garlanda e. Base Set, Minimum Product Data, Step Sequence 3. EXEMPTIONS a. From Notification d. 4. Justification for Same Within and Outside Respective Legal Framework) Applicable Methodology, Including "Triggers," Exemptions Utility of EEC or Other Exemptions for Use in TSCAj Extending Exemptions and Concurrent Increases in Risks. I.e., include base set in TSCA only with added exemptions (see 2.c.) E. H. Hurst/ J. Weis b. Frcro Testing c. From Reporting (See 2.e.) (To be developed) DITTO DITTO Latest Position Paper(s) 2. Status: 6/30/80 liaison Organizations CWS 4/0/80 UW 4/10/80 TG 3/80 (See 2.C.) Monitor and Evaluate Current Activities DITTO DITTO JW 3/18/80 3/20/80 EHIl 2/8/00 To be Prepared DITTO Agreed 4/J 6/80 to monitor changes, if any, in member states' laws, report resulting trade barriers if any, to rapporteur groups for USTRO and on economic effects for analysis and propo sals for action CRAG, CfiCD, BIAC, CEFlC DITTO DITTO CMA 0 4 4 6 6 6 /* 4. Updating i'rogress of New Sub stances e. 5. Procedures for Reporting Progress of New Substances and New Uses of Existing Substances, Including Significant New Uses iyi p it (E. Berman)/ * li. Urinkwater * now M. P. Tietze 5. Confidentiality f., g. 6. Procedures for Substantiating Con fidentiality, Identify Obliga tions of Multinational Companies to Submit, and Consequences of Government Possession, Use and Protection of Data E. Berman/ B. Broecker/ P. L. De Beeder 6. Economic Impacts 1. 10. Trade and Economic Effects, Including Those on Structure of Chemical Industries, due to National and Supra-National Health and Environ mental laws and Regulations J. Plaut/ R. Grainger (plus additional new Member to be identified) ElIB 4/2/80 1/11/80 */ >*>/ Monitor new iai: menijer state leg islatlon, to identlfy differences if any; also monitor progress under TSOI i 4, 5(a)(2), 8(a) (d) (e) cnwc, OTIC, OECD WT 4/80 JP 1/1/80 JP 3/25/80 RG 3/31/80 Agreed 4/16/80 to support OECD's evaluation of present laws in several oountries, and of options to resolve differences. CRAC, OECD, CEEIC, SOCMA An IAG/CEF1C Task fci'onp wil 1 be formed to develop projosals to resolve evident problems, via an international con ference or other route to an international Convention. Current legal safeguards will be maintained. Agreed 4/16/BO to re- CRAC, I1G, cognize varying SOCMA, levels of support for A11IC, ATA, OECD program USTIO, OI3CD Monitor current studies elsewhere Name of Issue 7. Labeling Prior Designation IAG/CEFIC Scope 1. Acute and Chronic Hazards; in USA, Required in Workplace (0611A), General Environnent (TSCA), Trans portation (DOF) 8. Occupational Health/Safety Hone 9. Environmental Concerns Hone To be Defined (includes EEC Post-Seveso Directive) To be Defined 10. U. S. Office of Special Trade Repre sentative k. 12. n 11. Monitoring Sig- -i jp. nifleant Gov't. Industry Activities in USA-CEFIC Countries function and Use as an Industry Resource, Procedures for Host Effective Use by US, EEC Determine Most Effective Pro cedure for Identifying and Ocnnunicating Essential Information 4. Rapporteurs IAG/CEFIC Latest Position Paper(s) Statusi 6/30/80 I.iaison Organizations J. Plaut/ C. W. Ehiith/ M. Tietze/ /r.A. Sheldon/ Garlanda / Sevestre / Deekhuizen AS 4/00 E. II. Blair/ Hone Hew IAG Menber Hone to be assigned / M. T. Foveaux/ C. J. Keeble MF 3/4/80 Agreed that rapporteurs ' CMA, will revise statement of scx>pe to include msaanAc-,Ainc, labeling of substances aocul, or preparations in conmerce, OSIIC of relevant aspects, if any, of processes, but not for transportation. Task Group to respond by 6/1/80 to ETA's 3/14/B0 dociment '`International Considerations* and to consider feasibility of international meeting on tills subject. CMA-O&IC, All 1C, 03'JC, WHO, CIA cma-em:, socma-eh;, UNEP, CETTC, ICIE, IABC Continue Monitoring OIA-ITC; Intl.COC G. W. Ingle/ 11. Ilaeseler fiWI 11/26/79 RL 2/1/00 Continue All 044667 -a. INTERNATIONAL AFFAIRS GROUP MEMBERSHIP *Chairman it ie Staff Executive (Details attached.) CMA 044668 INTERNATIONAL AFFAIRS GROUP MEMBERSHIP (Continued) OTHER MONITORING RESPONSIBILITIES IAEC ICIE OECD -- BIAC UNEP WHO G. S. Dominguez G. S. Dominguez G. S. Dominguez D. D. McCollister (Dow) J. Plaut Not Assigned CMA 044669 INTERNATIONAL AFFAIRS GROUP POLICY STATEMENT and Scope U. S- chemical industry's trade associations and their member - .. [fpanies have actively supported a constructive policy on the identi fication and control of chemical risks. It is apparent that such '-lectives are not limited to the U.S., and that in fact there is -owing international activity in this area. -o achieve optimum identification and risk reduction in the least ;,sruptive, most cost-effective and socially responsible manner on ^worldwide basis, requires open communication with the worldwide 'hemical industry. Accordingly, the U.S. chemical industry, through several of its trade associations, has created a joint task force designed to foster examination and understanding of common issues re lating to chemical health and environmental concerns among national, supranational and international associations of the major chemical producing countries. initial concerns with identification and control of chemical risks to r.ealth and environment include: generic aspects such as Good Labora tory Practices, confidentiality, international acceptance of test data, jlopment of test protocols, and determination of economic impacts. ;nsion to questions of tariff policy is not envisioned at this time. Specific Objectives To reach this general goal, activities will be directed toward these objectives: 1. Establish communications among associations and member contacts and other related organizations worldwide. 2. Develop and present respective technical concerns and consensus positions at national and supranational forums in present and emerging Chemical producing areas. 3. Provide the basis for international symposia. 4. Analyze respective national, supranational and international wealth and environmental concerns and legislative and regulatory re quirements for toxic substances on a worldwide basis. 5. Evaluate economic impacts on health and environmental laws and regulations including such factors as investment, innovation, impact R&d, plant siting, production, test marketing and trade. 6. Establish international cooperative projects such as toxicological or enviro-toxicological testing, economic analyses, -xport/import studies. CMA - 9/5/79; 11/19/79 CMA 044670 ACTION PLAN, TO SUPPLEMENT POLICY STATEMENT FOR INTERNATIONAL AFFAIRS GROUP STRATEGY A program of detailed international coordination and cooperation requires a priori a fundamental foundation of mutual trust and need To do this, a long-term program must be developed which establishea* continuity and validates a continued commitment. A five-year program is proposed in two phases: Phase 1 Generalized discussions which were intentionally of a broad-based "universal interest" nature to establish mutual trust and recognition of need and, beginning with the October '79 IAG/CEFIC meeting, have initiated designated activities which will extend through 1980. Phase 2 Continue generalized discussions as required, and in 1980-84, provide for more specific discussions, and program developoer. and implementation as outlined below, allowing future desired or or required changes: 1. Plan response to legislation and rule making -- national and supranational. 2. Propose selected testing programs -- health, environment. 3. Develop capability to generate joint statements on issues of international health and environmental concerns. 4. Identify or establish capability for authoritative review and analysis of relevant issues, including joint economicand trade-effect studies and strategies, risk/benefit, cost/benefit, comparative risk and other analytical methodologies. 5. Develop resource information -- R&D projects, testing facilities, key personnel, etc. 6. Create an early warning system to detect significant events requiring consideration of response. 7. Establish an international speaker bureau to utilize international speaker opportunities. CMA 044671 1979 ACTION PLAN ACTIVITY OBJECTIVES TIMING porm Joint CMA/SOCMA Inter national Affairs Group (LAG) Provide foundation for continued international program. completed Exchange relevant documents, e,g., laws, rules, regula tions, positions. Establish basis for industry coordination. continuing Initiate and maintain foreign trade association contacts: -- European -- Other foreign trade association contacts, including Japan. Establish basis for ongoing relationships. " "" " " continuing Initiated Explore and select relevant activities in UNEP, WHO, OECD, etc. Expand basis for European, international Initiated activities. Initiate and maintain foreign Expand basis for European, embassy contacts. international activities. continuing Decide membership in ICIE Expand supranational contacts. winter '79 ^Form IAG/CEFIC Task Groups Identify options in resolving issues in testing, notification of new substances, confidentiality, trade implications of control of toxic substances. continuing late '79'80; progreports in March '80 PERSONNEL IAG: 11 (including A.W. Sheldon, representing CMA OSH Committee) + (Others to represent CMA EM Committee) + (Task Groups, as required) STAFF: 0,2 Executive 0.25 Secretary-Administrative Assistant BUDGET $6,000 Discr etionary ($3,000 SOCMA) ($3,000 CMA) For IAG/CEFIC Meeting, excluding IAG, Staff Executive, secretarial costs. CMA 044672 1980 ACTION PLAN I m , . PRO JECT ___________ ACTIVITY _____________ ____ OBJECTIVE --1222^ 2. -------------continuing------------------------------- ---------------------------------------------------------3. -------------continuing------------------------------- -----------------------------------------------------4. ------------ continuing--------- ------- ------- ----- -------------- ------- ------------------ _____-- 5. ------------ continuing ----------------------------- Expand established contacts 6. ------------ continuing------------------------------- ---------------------------------------------------------- 8.------------ continuing------------------- ------------Planning Session to review product of Task Groups 9. Extend program to appropriate world Expand industry participative chemical industry trade associa- base tions, e.g., Brazil, Israel, etc- .10 Initiate & maintain contacts with Complete linkage with Federal US Govt, beyond EPA,QSTR,DOS,DQC .11 IAG/CEFIC Meeting interests and activities. Select & implement opinions in -- Europe testing, other issues identified by Task Groups. .12 Expand LAG to include representa Give broader attention to health tion of other relevant CMA/SOCMA & environmental issues affecting committees, explore formation of chemical industry. permanent International Health & Environmental Affairs Committee Contim1it. continue continue contimnj, cntinulc continuig early \ q continuia continuin 1 Q *8o 1 Q '80 13. First International Chemical Industry/Government Workshop (IAG/EPA/CEFIC/EEC). Establish better international government-industry relationships and development of legislation and regulation. 2 Q '80 -- 14. Establish early warning network. Provide basis for formal industry 2 Q '80 "alerting" on validated problems. 15. Establish international strategy study group. Provide basis for chemical industry international strategy study. 3 Q '80 PERSONNEL: IAG STAFF BUDGET: $3,000 1,500-- 4.000 3.000 $10,000 12-15 (plus task groups as required) 0.5 Executive 0.5 Administrative Assistant 0.5 Secretary Staff Travel ICIE Membership Contingency (CMA/SOCMA 50/50) CMA 044673 1981 ACTION PLAN ACTIVITY OBJECTIVE i.-----------continuing------ ------------ ----------------------------- continuing ---------------------------- -----------------------continuing -- ------------ ----------- -----------continuing----------------------------- -- -----------------------continuing -- -- ----------------------continuing------------------------------------------- --------continuing--------------------- Explore possible foreign government contacts jointly with local and in dustry representatives. Extend activities into direct governmental contacts. Explore possibilities for joint toxicology & related studies. Extend international and economic ' testing base. Develop international resources -- experts, laboratories, consultants. Establish greater knowledge resource base. Develop joint risk/benefit, cost/ benefit and related methodologies. Visit Japanese chemical societies and establish program IAG/CEFIC Conference -- USA Provide basis for independent international studies. Establish basis for expanded international activities. Establish more specific programs. TTMING continuing continuing continuing continuing continuing continuing continuing 1 Q '81 1 Q '81 1 Q '81 2 Q '81 2 Q '81 3 Q '81 Explore possibilities for joint economic and trade studies. Expand economic/trade analytical determination base. Establish international speaker bureau. Critical review of international status, especially third world developments. Provide basis for industry partici pation internationally. Further understanding of global concerns and potential legislation and regulatory developments. 4 Q '81 4 Q '81 PERSONNEL: LAG STAFF BUDGET: $4,000 3,000 $1,500 - 4,000 $14,000 -16,500 $ 25,000 15 (plus Task Groups as needed) 0.5 Executive 0.5 Administrative Assistant 0.5 Technical Assistant 0.5 Secretary Staff Travel Host Meeting ICIE Membership Contracted Studies (CMA/SOCMA 50/50) CMA 044674 .24 1982 ACTION PLAN PRO JECT ACTIVITY 2 thru) 6; 9, ) 10, 23) 25. Establish data network* 26. Propose and implement first joint economic/trade study. 27. Propose aud implement joint testing programs. 28. Develop or encourage creation of joint industry publication and international newsletter. 29. 4th international conference to include Japan -- in Canda/Mexico/ Brazil. 30. Participate in foreign legislative and regulatory developments. OBJECTIVE -------------- continuing -------------------- COQti Utilize information and data Jan. exchange in further activity conti response and program development. Provide basis for independent international activities. as re Build upon established contacts. Provide a forum for development and position presentation. 1982 tinuc 1Q ' Establish more specific programs. Utilize experience for dis cussion on legislative and regulatory proposals. 3Q ' as re PERSONNEL: BUDGET: LAG As in 1981 $25,000 plus additional contracted studies not now estimated. CMA 044675 1983 ACTION PLAN ACTIVITY OBJECTIVE TIMING continuing Pata Network Utilize data for program develop continuing ment and anticipated positions if needed. -- continuing propose and implement joint studies: a) Toxicological b) Environmental c) Economic d) Risk/benefit Utilize developed expertise and resources Develop planning base for cooperative Utilize relationships for industry/government programs. development of more rational legislation and regulation. Fifth international meeting: -- global, to include 3rd world cations. Utilize existing base to expand contacts and activities. Publish results of international study group and establish base for further studies. Disseminate study results and determine other areas of strategic concern. continuing as required 2 Q '83 4 Q '83 4 Q '83 PERSONNEL: BUDGET: As In 1982 $25,000 fixed-basis cost exclusive of variable costs (contracted studies, reports, etc.) CMA 04467 6 Comments on Five-Year Proposed Action Plan ('80 thru 84) phase 1 -- Completed phase 2 -- Functioning 1. Responses to Legislative Initiatives. Comments sent to OECD; EPA (re: Export;import rules awaited); Comments to German legislators^before the passage of new law, effective 1/82. Similar comments to U. K. legislators. 2. Proposed selected testing programs -- Health and Environment. None yet; await EPA testing rules, control actions (5 6); overseas require ments . 3. Develop capability to generate joint statements on issues of international health ^md"environmental concerns. Rapporteurial groups established on 11 TSCA/EEC issues; first drafts for most; some in second draft. Coordination with Japan initiated on similar issues. 4. Identify or establish capability for authoritative review and analysis of relevant issues, including joint economic- and trade-effect studies and strategies, risk/benefit, cost/beneTTt comparative risk and other analytical methodoTogies. As above with CEFIC,JCIA. Joint efforts with ITG are seen; additional relevant personnel needed. with etc. domestic 5. Develop resource information -- R&D projects, testing facilities, key personnel, etc. In progress via contacts organizations, EEC, OECD, UNEP, WHO, ILO, ICIE, 6. indicated above; Create an early warning system to detect significant events requiring consideration or response. Implicit in global contacts formal structure probably unnecessary. 7. Establish an international speaker bureau to utilize international speaking opportunities. initiated; implicit in above contacts. CMA 044677 SPECIFIC IAG OBJECTIVES NOT MET REFERENCE: POLICY STATEMENT OBJECTIVE 5. Evaluate international economic effects of health and environmental laws and regulations including such factors as investment. innovation, impact on R&D, plant siting, production. test-marketing and world trade. COMMENTS CMA/CRAC study of TSCA could provide partial model. Current UNEP and '81 OECD projects may define scope, and validate the need. 6. Establish international cooperative projects such as toxicological or envirotoxicological testing. economic analyses, export/ import studies. The several national testing requirements are likely to overwhelm any one national testing capacity and thus, possibly by '82, justify international cooperative projects. Contacts with JETOC, ECETOC and others will monitor. UNEP and OECD programs may obviate or validate need ex/import studies. CMA 044678 CHRONOLOGICAL HIGHLIGHTS OF IAG ACTIVITIES Meeting Salient Results First IAG -- 6/28/79 IAG -- 7/20/79 IAG -- 8/17/79 IAG -- 9/17/79 - Drafted Policy Statement, Five-year Plan -- Identified relevant WHO, ICIE, UNEP, OECD, BIAC Programs and assigned monitoring responsibility -- Replaced International Issues Task Group of CRAC -- Identified top priority TSCA/EEC issues -- testing (base-set), confidentiality -- Proposed limited participation in APHA Meeting (11/2-3/79) on "Export of Hazardous Industries to Developing Countries" -- Defined plans for fall meeting with CEFIC -- Identified role of OSTR in confidentiality issue -- Japan Chemical Industry Association (JCIA) and Ecology and Toxicology Center (JETOC) alerted to planned meeting with CEFIC -- Refined Policy Statement, Five-year Program for presentation to CMA, SOCMA Boards 11/79 -- Prepared for meeting with JCIA's "Japan Chemical Employers' Labour Relations Study Team" in Washington -- Further definition but no resolution of confidentiality issue, including USA, OSTR, EEC, OECD facets for further discussion with CEFIC -- Initial plans for quadripartite IAG/ CEFIC/EPA/EEC-OECD meeting in Paris 11/79 -- Cooperation offered to WHO's project, "Guidelines on Principles and Procedures for Developing Environmental Health Standards" ! J t r IU! ,, i j': ; i, [ t If' : I I Ii 1' Vi I !f:! `i : li I ll| ?! <-! ,, i !: !; .Id : I If/ I CMA 044679 Chronological Highlights of IAG Activities -- page 2 Meeting IAG -- 10/8/79 IAG/CEFIC -- 10/17-19/79 IAG-- 11/27/79 Salient Results -- "Rohm and Haas Proposal" added to Confidentiality issue -- Developed CMA comments on August '79 CEQ Report to the President, Section VIII, "International Issues." -- Added CMA/OSHC representative to IAG to address international occupational health and safety issues such as EEC's "Post Seveso" Directive -- Arranged for CMA/IAG participation at Conservation Foundation Meeting 11/30-12/1/79, Montsault, France, on "Toxics Problems" for national legislators -- International labeling issue raised -- Identified 12 critical TSCA/EEC Issues and organized rapporteurial task groups to define and resolve -- Postponed indefinitely quadripartite meeting -- Draft Record of 10/17-19/79 meeting reviewed, awaiting CEFIC comment, and especially assignments to rapporteurial task groups -- CMA, SOCMA Boards' approval of Policy, Action Plan confirmed 11/19/79 -- Negative aspects of APHA Conference on "Exportation of Hazardous In dustries to Developing Countries" prompted Ad Hoc Group to respond, when Proceedings are available (not so, 8/26/80). Consideration given to EPA's proposed rules, especially generic aspects of "Notification of Export for PCB's and Fully Halogenated Chlorofluoralkanes," and correspond ing EPA early proposals for Imports (TSCA 13) CMA 044680 ironological Highlights of IAG Activities -- page 3 Meeting IAG -- 1/14/80 AG -- 2/5/80 Salient Results -- CEFIC rapporteurs identified; joint draft position papers prepared for March '80 IAG/CEFIC meeting -- February meetings with JETOC scheduled -- March planning meeting with CEFIC in Brussels scheduled for full IAG/ CEFIC meeting in April -- Comments prepared on UNEP's 4/79 "Draft Guidelines for Assessing Industrial Environmental Impact and Siting of Industry." -- Scheduled meetings with Departments of State, Commerce, Agriculture, re: industry concerns in OECD meetings on toxic substances -- Prepared briefing for Mr. J. Henske with CEFIC's President, Dr. Lanz -- Contact made with Mexican Chemical Industry Association (NAIQ) and July meeting set -- March meeting with West German Bundestag Parliamentarians and industry advisors scheduled in Wash ington on pending health and environmental legislation -- Coordinated with CRAC in preparing testimony for March EPA ReAuthorization Hearings. -- EPA and OSHA proposed rules with Articles 5-18 of '67/549/EEC. Detailed analysis started -- IAG participation started in Conserva tion Foundation's Dialog Groups on (1) Notification of New Chemicals and (2) Follow-up Reporting of New Chemicals mu i in / i;.1I'*i'' ii/t if !I ii !H i ; i * ,f j :b 'fji j ! i ( li |I <i . M1, fi1. CMA 044681 -i if t. 1 Chronological Highlights of IAG Activities -- page 4 . __ Meeting IAG -- 4/2/80 IAG -- 5/6/80 IAG -- 6/10/80 Salient Results -- 3/15 conclusions of Brussels Planning Meeting confirmed and expanded for fullscale IAG/CEFIC meeting 4/14-16/80 at Brussels. Desirability of, and routes to, international convention on confiden tiality defined but later postponed indefinitely by CEFIC -- Comments prepared for UNEP Chemical Industry Seminar 5/22-25/79 in Geneva; improved coordination with UNEP will be required -- Plans made for 6/9, 13/80 meetings with UK Parliamentarians, Chemical Industries Association, in Washington, D. C., and in New York City -- Growing complexity of various USA label ing requirements and differences from EEC's require strengthening of IAG/CEFIC rapporteurial task groups and coordina tion with relevant CMA committees (CRAC, OSHC, etc.) -- Detailed commentary made to EPA regard ing conclusions and recommendations to be presented to High Level Meeting of OECD in Paris, 5/19-21/80 -- Contact made with Venezuela's Chemical Industry Association (ASOQUIM) regard ing exploratory meeting. -- Recommended to NAS/NRC that appropriate industry representation be included on the NRC Committee on Risk and Decision Making -- Steering Committee recasts assignments to improve IAG performance. Status of IAG/CEFIC rapporteurial task groups up dated and enlarged. -- Strengthening of linkage with USA and other national BIAC's seen needed to communicate more effectively with OECD, to balance EPA influence -- IAG commented to EPA that Rohm and Haas proposal identifies the issues in con fidentiality of information but offers no effective or supportable remedy CMA 044682 Chronological Highlights of jAG Activities -- page 5 Meeting Salient Results IAG -- 7/15/80 IAG TM 8/19/80 -- Status Report of IAG/CEFIC Rapporteurial projects distributed to JCIA, ANIQ, ABIQUIN, OECD, UNEP -- Considered favorably proposal for Wash ington, D. C. , Spring '80 Conference on existing compliance requirements of various national health and environ mental laws. -- Scheduled meetings of Special CEFIC Delegation with Federal authorities on petrochemicals and energy. -- USA BIAC personnel presented history, activity and merit of this conduit to OECD; nominees requested for strengthened BIAC. -- At CEFIC's request, nominated USA and European industry experts for Zurich meeting. Fall '80 on "Chemistry - ManEnvironment"; one on chlorofluorocarbons accepted -- Interest report of Venezuela's ASOQUIM in exploratory meeting -- Finnish Embassy requests help in planning plant visit by Confederation of Finnish Industries -- Restricted scope meeting confirmed with CEFIC 11/80, preparatory to plenary session in Spring '81. CMA 044683 THE INTERACTION OF THE CHEMICAL INDUSTRY WITH REQUIREMENTS OF NATIONAL HEALTH AND ENVIRONMENTAL LAWS There is widespread opinion that chemicals in development and commerce contribute significantly to the world's health and environmental burdens and associated costs. This is understatement. This premise is frequently expressed as a belief -- the Federal Republic of Germany's recently passed chemicals control legisla tion is only one in a series of such laws, including USA's Toxic Substances Control and related health and environmental laws. The flow of regulations from .these laws increases daily. To rationalize the many differences in these national require ments, and to explore and define broader differences between developed and developing economies occupy the attention of supra-national and global groups. EEC and OECD have major programs to find areas of agreement in the many scientific and policy questions raised by one or more of these laws and their regulations. UNEP and WHO/ILO programs are especially and in^lasingly concerned with studying the possibility that the underdeveloped countries are exploited by the developed countries through trade in chemical substances. Proven or not, it is true, from UN data, that, on the average, half the world's trade in manufactured goods comprises chemicals. It is important, then, that the USA chemical industry, in concert with foreign chemical manufacturers, understands and copes with the many scientific, technical, business and legal issues inherent in this question. These include an agreed glossary; Good Laboratory Practice for obtaining toxicological and environ mental data acceptable across national boundaries; banks for hold ing and retrieving such data with suitable protection of their confidential elements; notifying authorities of intent to manufacture or market new chemicals; protection and training of ^Ployees; enforcement procedures and related penalties; economic impacts of these requirements on individual manufacturers and on national industries; effects on domestic and world-wide export # import businesses, and more. i [i H, j ' i! U ! i | i f! CMA 044684 2- - These issues must be considered in terms of the USA chemical industry's vital economic importance to this country, its immediate neighbors and its trading partners throughout the world. It follows that any real or potential threat to this importance, including non-tariff trade barriers created by national health and environ mental legislation, must be perceived and resolved promptly. The net annual USA trade deficit of $25 to $35B has persisted since 1975, but the favorable annual chemical trade surplus in this period has moved from $4 to $10B and may con tinue to increase for a time, for a variety of reasons. This gain is differential -- exports and imports to and from all global sectors have been increasing, albeit at widely different absolute levels. There are signs, however, that the major surplus in U.S. chemical trade could shrink in the face of escalating costs for energy and feedstocks. Even in 1979 imports of benzenoids topped $1B. EEC data show that over the last two decades Western European manufacturers and, in some cases Japanese, have displaced competetive USA manufacturers in rank order by sales. Similar trends appear in commercial banking, metal manufacturing, automotive and food products, less so in pharmaceuticals. The EEC's Chemical Industry Committee publishes its "Annual Review of the Chemical Industry" (based in part on the United Nations Monthly Bulletin of Statistics) showing country-by-country, and (major) product-by-product statistics for global exports and imports, reflecting the truly major scale of this economic activity. Clearly the reasons for these changes are many and inter acted. Several of these are described in detail in the 1979 U. N. report on "The Structure and Behavior of Enterprises in the Chemical Industry and Their Effects on the Trade and Development of Developing Countries." The role of regulations CMA 044685 -3- under national health and environmental laws is certainly not dominant now and may not ever be; but this is unquestionably potential and appears growing in significance in selling technology and products to the Third World. These concerns are mirrored also in UNEP data and programs. "Implications for the Trade and Investment of Developing Countries of U. S. Environmental Controls" is another UN report (1976) reflecting this concern for the creation of non-tariff trade barriers under TSCA and other such laws. The same con siderations are evident especially in the activities of OECD's Chemicals Group, to harmonize the growing number of, and frequently disparate, requirements of, national health and environmental laws. It follows that CMA must be alert to, and participate effectively in, the international activities in developing and harmonizing national health and environmental laws, lest these operate to the USA chemical industry's disadvantage. It is clear that the U. S. EPA has used its contacts with the EEC and OECD to promote, wherever possible, its own positions on issues in opposition to those of CMA. For example, in EPA's quest for detailed health and safety data in premanufacture notifications (PMN) of new chemicals, in frank opposition to the statutory requirements of TSCA, EPA and its unofficial but ubiquitous cooperators, such as the Conservation, have in meetings with EEC and OECD exhorted use of the EEC "base-set" (of test data), if coupled with EEC's exemptions which are absent from TSCA -- an essential qualification. The language of TSCA's Section 5 on PMN was described recently to EEC as a "perverse incentive" not to test new chemicals, to justify amending Section 5 to require use of the EEC ."base set." CMA 044686 -4- For these reasons the International Affairs Group is developing and must strengthen its links with other national chemical trade associations, and through these groups and, where possible, directly, with supra- and inter-national organizations which attempt to rationalize national dif ferences. Such rationalization means rarely, if ever, complete agreement, considering the historic, legal and other national differences. It does mean continuing and conscious give-and-take within these limitations, as our perceptions improve of the controls needed to eliminate unreasonable risks of chemical substances. Because of the extremely complicated nature of these activities, the International Affairs Group Action Plan was programmed deliberately over five years and will clearly require your continuing support through and beyond 1985. CMA 044687 CONCLUSIONS FROM FIRST YEAR'S OPERATION OF IAG 1. IAG contacts with EEC and OECD have developed a heightened appreciation of how the US EPA exploits these supranational organizations to its own ends, generally to the chemical industry's disadvantage. IAG, on its own, and with and through its foreign counter parts, must strengthen its relations with EEC and OECD to counterbalance EPA's activities where necessary. One route to this end is for IAG to take membership in the recently recognized ICIE, which has official NGO status to observe EEC and OECD activities. Another is to greatly strengthen IAG and coordinate IAG's and its foreign counterparts' participation in national BIAC's, the international BIAC, and OECD Working Groups of Experts, and subservient Working Parties 2. There needs to be clearer distinctions between IAG and ITG, their respective scopes and objectives, and understand ing of these. We propose to review the IAG Policy Statement and Action Plan, and suggest, with ITG, changes to this end, to eliminate needless duplications, if any, and optimize coordination on those matters requiring joint attention. 3. The importance of global health and environmental matters to the USA and allied foreign chemical industries can only increase. One such matter not addressed yet by IAG or ITC is that of transportation of chemicals and its effects on health and the environment. CMA's Distribution Committee does relate to concerned international bodies; it remains to be determined if these international aspects need greater attention by IAG or ITG. Regardless, larger resources of CMA and related foreign trade associations will have to be dedicated to managing these matters. CMA 044688 Conclusions from First Year's Operation of IAG -- page two 4. These increasing levels of IAG activity will require additional Group members and staff support. Nominations of members are now being received to provide the needed expertise. The FY '81 budget considered adding 0.5 technical and secretarial assistants. The latter has been done; adding the technical assistant could well be postponed to FY '82, and will be recommended in due course. RECOMMENDATIONS -- Activities programmed under Action Plan continue within indicated budget. -- Review Action Plan with International Trade Group to clarify respective responsibilities. CMA 044689