Government Regulation

February 6, 2019

Trade News

US trade deficit narrows much more than expected

  • The U.S. trade deficit fell to $49.3 billion in November, the first decline after five straight months of increases.
  • But on a year-over-year basis, the gap rose by 10.4 percent.

The U.S trade deficit with its global partners fell in November for the first time after five straight months of increases as the shortfall with China and several other countries declined.

Tightening the balance between imports and exports has been a major goal of the Trump administration, which last year started levying tariffs in an effort to close the gap.

A release from the government Wednesday showed the gap had closed in November, the most recent month for which data was available, to $49.3 billion from $55.7 billion in October, representing an 11.5 percent decline. Economists surveyed by Dow Jones had been looking for a deficit of $54.3 billion.

The decline was largely due to a slide in imports, which fell 2.9 percent to $259.2 billion. Exports edged lower to $209.9 billion, a 0.6 percent drop.

In all, the year-to-date goods and services deficit increased by $51.9 billion, a 10.4 percent rise from the same period in 2017. Exports rose $157.1 billion or 7.3 percent, while imports gained $208.9 billion or 7.9 percent.

On a broader level, the drop in the trade deficit will serve as a boost to fourth-quarter GDP, which is expected to show a 2.5 percent increase, according to CNBC’s Rapid Update tracker as well as the Atlanta Fed’s GDPNow measure.

How the trade tensions play out over a longer period, though, is unknown as the U.S-China talks continue ahead of a March 2 deadline for imposition of another round of tariffs.

“America’s trade fight with the world has finally started to slow global trade and only time will tell whether this is a good thing for the economy in the long run,” Chris Rupkey, chief financial economist at MUFG, said in anote.

Among individual countries, the gap with China closed $2.8 billion to $35.4 billion.

Treasury Secretary Steven Mnuchin told CNBC in an interview Wednesday that trade talks have been “very productive.”

https://www.cnbc.com/2019/02/06/us-trade-deficit-narrows-much-more-than-expected-in-a-win-for-trump.html

January 11, 2019

CA Regulatory Update

ACC appeals against California spray foam priority product designation

Organisation - SCPThe American Chemistry Council has filed an appeal to get California’s Department of Toxic Substances Control (DTSC) to withdraw its designation of spray polyurethane foam (SPF) systems as a priority product under the Safer Consumer Products programme.

In a 2 January letter to the director of the DTSC, the ACC initiated the formal appeal process, reiterating an earlier request for the agency to withdraw the designation.

Under the SCP scheme, manufacturers of designated product-substance pairs are required to either complete an alternatives analysis to determine if a safer replacement is available, or reformulate to avoid the substance’s use.

Last year California designated SPF systems containing unreacted methylene diphenyl diisocyanates (MDI) its second priority product. In 2017 it had announced children’s foam-padded sleeping products containing flame retardants TDCPP or TCEP as the first product. However, as the marketplace had already phased the substances’ use out, this resulted in no notifications.

The designation of SPF systems has, however, been delayed by industry pushback. Last May, the ACC filed an informal protest regarding the listing. This temporarily halted the original September notification deadline.

The ACC argued that the DTSC should withdraw it because SPF systems do not meet the criteria for inclusion in the programme. And it said the department had not adequately demonstrated the potential for significant or widespread adverse effect from their use.

In a September meeting with them, the ACC proposed the agency enter into an enforceable consent agreement (ECA) instead to address concerns with the product.

The DTSC urged the ACC to ‘accept the results of this comprehensive, objective regulatory process, and comply with the requirements’

But in December, the DTSC rejected the request and said it was not permitted under the SCP Regulation to enter into an ECA. In its response it urged the ACC to “accept the results of this comprehensive, objective regulatory process, and comply with the requirements”.

This response prompted the ACC into filing their appeal which also reiterated the organisation’s request for the DTSC to withdraw the priority product designation for SPF systems and to reconsider its view that it lacks the authority to enter into an ECA.

Entering an agreement, it said, “would be the most time- and cost-efficient solution, would allow the public an opportunity to participate through public comments and public hearings, and could produce an alternatives analysis as one possible outcome.”

The ACC told Chemical Watch it is offering a ‘reasonable and responsible path forward that helps the state achieve its public health objectives in a faster, simpler, and more collaborative manner’

A spokesperson for the ACC told Chemical Watch it is offering a “reasonable and responsible path forward that helps the state achieve its public health objectives in a faster, simpler and more collaborative manner.”

The requirement for SPF manufacturers to notify the DTSC has been paused during the informal dispute process. The formal process will result in an additional stay, a spokesperson for the agency confirmed to Chemical Watch.

https://chemicalwatch.com/73040/acc-appeals-california-spray-foam-priority-product-designation

January 11, 2019

CA Regulatory Update

ACC appeals against California spray foam priority product designation

Organisation - SCPThe American Chemistry Council has filed an appeal to get California’s Department of Toxic Substances Control (DTSC) to withdraw its designation of spray polyurethane foam (SPF) systems as a priority product under the Safer Consumer Products programme.

In a 2 January letter to the director of the DTSC, the ACC initiated the formal appeal process, reiterating an earlier request for the agency to withdraw the designation.

Under the SCP scheme, manufacturers of designated product-substance pairs are required to either complete an alternatives analysis to determine if a safer replacement is available, or reformulate to avoid the substance’s use.

Last year California designated SPF systems containing unreacted methylene diphenyl diisocyanates (MDI) its second priority product. In 2017 it had announced children’s foam-padded sleeping products containing flame retardants TDCPP or TCEP as the first product. However, as the marketplace had already phased the substances’ use out, this resulted in no notifications.

The designation of SPF systems has, however, been delayed by industry pushback. Last May, the ACC filed an informal protest regarding the listing. This temporarily halted the original September notification deadline.

The ACC argued that the DTSC should withdraw it because SPF systems do not meet the criteria for inclusion in the programme. And it said the department had not adequately demonstrated the potential for significant or widespread adverse effect from their use.

In a September meeting with them, the ACC proposed the agency enter into an enforceable consent agreement (ECA) instead to address concerns with the product.

The DTSC urged the ACC to ‘accept the results of this comprehensive, objective regulatory process, and comply with the requirements’

But in December, the DTSC rejected the request and said it was not permitted under the SCP Regulation to enter into an ECA. In its response it urged the ACC to “accept the results of this comprehensive, objective regulatory process, and comply with the requirements”.

This response prompted the ACC into filing their appeal which also reiterated the organisation’s request for the DTSC to withdraw the priority product designation for SPF systems and to reconsider its view that it lacks the authority to enter into an ECA.

Entering an agreement, it said, “would be the most time- and cost-efficient solution, would allow the public an opportunity to participate through public comments and public hearings, and could produce an alternatives analysis as one possible outcome.”

The ACC told Chemical Watch it is offering a ‘reasonable and responsible path forward that helps the state achieve its public health objectives in a faster, simpler, and more collaborative manner’

A spokesperson for the ACC told Chemical Watch it is offering a “reasonable and responsible path forward that helps the state achieve its public health objectives in a faster, simpler and more collaborative manner.”

The requirement for SPF manufacturers to notify the DTSC has been paused during the informal dispute process. The formal process will result in an additional stay, a spokesperson for the agency confirmed to Chemical Watch.

https://chemicalwatch.com/73040/acc-appeals-california-spray-foam-priority-product-designation

January 7, 2019

Tariff Impact on Epoxies

Industry 4.0, Tariffs Cause Major Spike in Epoxy Resin Sourcing

This Thomas Index Report is sponsored by Ellsworth Adhesives, a global leader in specialty chemical distribution.

Hello, and Happy New Year! In this week’s Thomas Index Report, we’re going to take a look at sourcing activity for Epoxy Resins by users of the Thomasnet.com platform. Our data shows that over the past 12 weeks, sourcing activity for this category is up 42% over its historical average.

Our firmographic buyer data shows that three of the top industries driving this trend are aerospace & defense, construction, and the semiconductor & electronics industry.

As Industry 4.0 drives a massive increase in the use of advanced electronics on the factory floor and throughout the supply chain, we believe this digital industrial revolution is a key driver behind sourcing activity for Epoxy Resins. At the heart of those advanced electronics are printed circuit boards, or PCBs, and Epoxy Resins are used heavily to protect and insulate those PCB components from harsh environments, where vibration, moisture, and thermal or mechanical shocks are an issue. Our data does show a correlating increase in sourcing activity for PCBs, which has been surging for over a year on Thomasnet.com. In fact, Printed Circuit Boards were the second most sourced product category on our platform in 2018.

In addition to PCBs driving a lift in sourcing for Epoxy Resins, we believe that tariffs are also driving increased demand for domestic sources of supply. Epoxy Resins are used in a broad range of applications, from marine and industrial paints and adhesives to automotive coatings, powder coatings, casting and molding compounds, and more. As the U.S. levied a 25% tariff on Chinese imports of Epoxy Resins back in August of 2018, it’s likely that this cost increase had U.S. buyers of Chinese materials scrambling to find new sources of supply.

In addition to sourcing for Epoxy Resins, our data also shows that sourcing activity is up 21% over the past 12 weeks in the broader general category of Resins.

Watch the video here:  https://news.thomasnet.com/featured/industry-4-0-tariffs-cause-major-spike-in-epoxy-resin-sourcing?channel=email&campaign_type=thomas_industry_update&campaign_name=190107&utm_campaign=190107&utm_medium=email&utm_source=thomas_industry_update&tinid=220515551

January 7, 2019

Tariff Impact on Epoxies

Industry 4.0, Tariffs Cause Major Spike in Epoxy Resin Sourcing

This Thomas Index Report is sponsored by Ellsworth Adhesives, a global leader in specialty chemical distribution.

Hello, and Happy New Year! In this week’s Thomas Index Report, we’re going to take a look at sourcing activity for Epoxy Resins by users of the Thomasnet.com platform. Our data shows that over the past 12 weeks, sourcing activity for this category is up 42% over its historical average.

Our firmographic buyer data shows that three of the top industries driving this trend are aerospace & defense, construction, and the semiconductor & electronics industry.

As Industry 4.0 drives a massive increase in the use of advanced electronics on the factory floor and throughout the supply chain, we believe this digital industrial revolution is a key driver behind sourcing activity for Epoxy Resins. At the heart of those advanced electronics are printed circuit boards, or PCBs, and Epoxy Resins are used heavily to protect and insulate those PCB components from harsh environments, where vibration, moisture, and thermal or mechanical shocks are an issue. Our data does show a correlating increase in sourcing activity for PCBs, which has been surging for over a year on Thomasnet.com. In fact, Printed Circuit Boards were the second most sourced product category on our platform in 2018.

In addition to PCBs driving a lift in sourcing for Epoxy Resins, we believe that tariffs are also driving increased demand for domestic sources of supply. Epoxy Resins are used in a broad range of applications, from marine and industrial paints and adhesives to automotive coatings, powder coatings, casting and molding compounds, and more. As the U.S. levied a 25% tariff on Chinese imports of Epoxy Resins back in August of 2018, it’s likely that this cost increase had U.S. buyers of Chinese materials scrambling to find new sources of supply.

In addition to sourcing for Epoxy Resins, our data also shows that sourcing activity is up 21% over the past 12 weeks in the broader general category of Resins.

Watch the video here:  https://news.thomasnet.com/featured/industry-4-0-tariffs-cause-major-spike-in-epoxy-resin-sourcing?channel=email&campaign_type=thomas_industry_update&campaign_name=190107&utm_campaign=190107&utm_medium=email&utm_source=thomas_industry_update&tinid=220515551