Document GxzpMNZJdpqGqr1MwyX1BBzq

ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT Environment Directorate NC P/CO/PC B/72.2 RESTRICTED Paris, 15th September, 1972 To: National Delegations (copy to national repre sentatives at the Consultation on PCBs) Or. Eng. NOTIFICATION AND CONSULTATION PROCEDURE ON MEASURES FOR CONTROL OF SUBSTANCES AFFECTING MAN OR HIS ENVIRONMENT Consultation on Polychlorinated Biphenyls Issues for Discussion (Note by the Secretariat) 1. Under the Environment Committee, through Its Sector Group on Unintended Occurrence of Chemicals In the Environment, PCBs were recognised as a priority investigation with regard to control of escape of chemicals Into the environment. This Investigation was launched at the beginning of 1972 and Infor mation has been collected on the production, use, trade In PCB-contalning products and probable discharge Into the environment of these chemicals. Furthermore, the Sector Group will be examining In November the feasibility of substitution or control and the desirability that governments adopt a common policy towards control of the use of the chemicals Involved. 2. Under the Notification and Consultation Procedure and after the date of Initiation of the Sector Group Investigation, the Organisation has received four notifications* stating that certain governments, namely that of the United States, Japan, Norway and Sweden, either have taken, or are proposing to take, legislative action. In producing countries (l.e. the United States and Japan) this action is based on agreements with manufacturers to limit the supply of PCBs to certain specified types of use, namely those where the chemical Is contained In a closed circuit and can be recovered for regeneration or for destruction. The Investigation mentioned In paragraph 1 has revealed that although in the OECD Member countries there are only a small number of manufacturers engaged In the production * 8/NCP/ENV/72.5 United States) 13/NCP/ENV/72.1 Norway ) 16/NCP/ENV/72.1 Sweden ) 17/NCP/ENV/72.1 Japan Tabled at Consultation Meeting for reference RETYPED FOR READABILITY MONS 043437 I ICl'/tl'P/ 11 i/ /2 2- of the action taken at today's data still leaves 3overal rnwreon of curjply uAcontrollod. . 3. The investigation referred to above las also <.liclocd there appears to bo little trade of I'Cl.j iron outside the (.'.CO n..'t.ibei-o'nio and finally, that tko ahenico.l:; are isod In a v'J.u.v diversity* of applications and die torccd through nauufoc- tuned products, such as nr. into, wrapping pr.psrs, copying papers, c l 1:0 ti-'i c.a.l condensers, etc. The proi'lc-t of control of use. of Ui'sr.o cho; deals would, tnci'oi'orc,- in practice appear to be at choice: ' . .- ' (a) their control at tha point of orirl .-V.L_suonJv, coupled rith atrofecient ' oa specified aiTa""o'j- "* (b) the introduction of a copplox and or.tensive series of rc/.uIfttions dealing with 0. large nurhor and a consi(i'.w'.-itlc iv .ire of i.a;,ufact.urnd rood.".. h. In view of the fool that unilateral action is beiiy; token in certain iavabor countries and that this action appears <w he he.r.vd on the principle of control of supply of the chorii- o.'.'in r.t .'Oi.'.rce, .-;<! tck'iug into account one of the "Guiding '.'.lci .' i es Ccvicoriiing International i.conoi-iio Aspects of , V vj ro,. .v at a l Policies'* which stated that govo^niacnts should see:: o<'.v:on standards for pollutin'; products /C(72)123, Anne;: 1, ;>::ru0. -..vi." 1 iq/, it' was considered appropriate i;y the Secretary- ii i.orr.l, foi'lo-.:i.<; a'recusat by tho United Mates Delegation,- io oewura a consultation resting; since clearly: (c) deglutition with-regard to these clicr.iicals effects the condition.-: of 'trade, r.ot necessarily solcly in the trade of funs the -solvos, hut also trade in various ' PCi) containin'-; products a id. capital goods whoso design characteristic:; i.iay havo to change; (h) The situation could readily '..ocono very co.-.-.licated if <U."foront policies were to be adopted in different countries as between: (i) control exorcised at the point of original supply of redo; (ii) cont rol exercised on the' Manufactured l'C'.Jccvvi.aining products; (Ui) no-control; M0NS 043430 (c) V*e interests of certain countries that uo not produce rev.-. ;rn. do not wish to confcauinai.- tra-ir c..viroivient throw-h the uso of iuported PCil-containii-.. product.-, arc ii.\ oiwd; Without effactiv* . cwsirol a j.r. porting cotvitries, there is already cvidor.cc diet these pro ducts arc appearing as an u.iGcsi.v ii conponort in fch ';v. ,i :-ui 1 rent. -3- NC P/CO/PCB/72.2 5. The problem for consideration by the consultation meeting is not whether PCBs merit government action as a chemical to be designated as undesirable In the environment within policies of governments, since there is ample evidence to sustain such policy. The issue is whether in view of the fact that four Member countries have taken positive steps to limit the use of this chemical means that for effective and efficient co itrol it is desirable that all governments should adopt comparable policies with regard to the use of these chemicals. 6. In this context it should be noted that it is primarily the trading value of the products in which PCBs are Incorporated which represents the major trading issue; the trade in bulk PCBs being a relatively small item in the overall production of the chemical industry. Secondly, the uniform approach would ensure that the product standards became the same throughout the OECD Member countries, and presumably this would not in general result in a serious disturbance of the pattern of trade. Nevertheless certain special aspects, such as paint formulation in small companies, may present a special problem. 7. If countries were to come to a general agreement on a common policy regarding control at source, this would imply: (a) An acceleration and development of the Environment Committee's Sector Group work on ways and means of implementing control so that agreements could be reached between Member governments; and (b) Immediate measures would be needed to avoid undue pro duction and unnecessary accumulation of these products in the hands of wholesalers during the inevitable transition period for negotiation and legislation. 8. If countries do not come to an agreement on a common policy regarding control at source of the bulk PCBs those coun tries introducing unilateral controls could still Implement such controls under Article 20(b) of the GATT1. It is however well known that uncoordinated recourse to this article may lead to the creation of non-tariff barriers to trade and to complex 1. Article 20(b) of the QATT: General Exceptions: MONS 043439 "Subject to the requirement that such measures are not applied in a manner which would constitute a means of artitrary or "unjustifiable discrimination between countries where the same conditions prevail, or a disguised restriction on international trade, nothing in this Agreement shall be construed to prevent the adoption or enforcement by any contracting party of measures: IS! necessary to protect human, animal or plant life or health RETYPED FOR READABILITY  if r/co/?c: ,7,?.2 -h- ac: ij.nir.trf.tivo ptiohlena' vhicii would probably rise to c.i ai.iy procedures .such.as product quality con- roi in ;,.l 1 ccen-- t.'j.os involved. ' '. , 9. Jn, tho lifiht of tile above corr.i dorati en:>, and in particular the fact that two i'CQ-prodi-.eiiif; com!rics heve sjmjctui or inland to cnr.cfc legislation with rocpcr.t to the. control 'o/ 1'CBr. at source, end that two non-r'CB producing; countries . h;:\e enacted legislation- ro'.iiniin^; the rostricv.ocl use *>/ V(;Yi::, tia.1 cf,ato;j to tho consul cation Meeting are inv.i U.<i to consider: (a) tho desirability of establishing a co.won policy frnnevox'.v throughfn't tho (7.ICO veribe v-.-.hio rog: ruing ti e acceptable uses,of PCOs under .specific condltione (closed oysto..n;, recovery of i'CXIo ini' regeneration or destruction), thus avoiding post hoc need to iier-iirmi.'-.f <U spa rate regulation:: in di liferent conn trios;' (b) it: particulri' the willingness of Oder; l^jQ-prouocing countries to exorcise govew.cirfcal control at the , . source of production oi' the i'Cb (for enat.ilo an to inventory, or salon to Menufaoturoro for only car te in allowed uses) to the satisfaction o.C all OtCD bonier countries, as opposed to alsoroativo -i'o..wren dealing with a variety of Manufactured products, con- tailing IKXJs in varying aiiorrAs; (c) tho need- for and aOiuinistrotj ve feasibility of inl.nr- . fovernucrvsl agreement to liYJ.t stoc':- pi j trig of rCSs d'.'.rti).the transition parted requires for re:;, effective legislation; (d). whet steps can be tohon by 1C.';> yredvo-in,:; oouot.ri-ris \(hieh have not yet negotiated with vh:-ir resp-otivo Kanu.facturci's to prevent doi-orioraticn of the onviror.- went during the transition period. ' 1. '.'Cl.fi ere used in a largo iv.inber of pj-oduoi iftrludi. ; lb.: follow.l./:;;: dielectrics in transfer;.ars and con.-'cnotv heat transfer flui .h:, .industrial fl -ids such as hyh. .ulJ.e liquids, lubricating and cutting o.U's, pi;..; Lie: ::or- for a variety of products such as toxiii* coutin;.;-, print in.'.s, and ccuyj.u.q paper,' glues, adhesive:;, seals;: is," pin:: hies, rubber products, etc.......... HONS 043440