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RECOMMENDATIONS 

Based on the preceding analyses, several recommendations are offered to realize WEEE’s goals of preventing, reducing and recycling electric and electronic equipment without distorting competition or obstructing trade.  The first set of recommendations advocate the removal of the two prohibitive provisions of the directive.  The second set of recommendations outline how industry and government can work together to realize the objectives set forth by the directive and solve the problems related with waste from electrical and electronic equipment.

 

Recommendations for the WEEE Directive

The provisions of the WEEE Directive that ban essential materials and attribute sole responsibility for the collection of end-of-life household products should be eliminated.  Presently, through its regulations and requirements, the WEEE directive burdens the electronics industry with unnecessary compliance costs, which would better be used to support new innovations that lessen the environmental impact from WEEE.  In order to do so, the ACEI should: 

  • Lobby the EU Commission, Council and Parliament to remove the two provisions of the WEEE directive. 
  • Work closely with USTR, lobbying for assurances that if the directive is enacted, the US will bring a case before the WTO DSB.

 

Recommendations for Joint Action

In order to find solutions to the problems that occur because of waste from electrical and electronic equipment, both government and industry must work together.  Representing the US high-tech industry, ACEI has spearheaded the efforts on this issue.  Continuing in that capacity, ACEI should facilitate a constructive dialogue between government and industry on how best to achieve the objectives of reducing waste and protecting the environment while not causing an undue burden on industry.  In order to do so, ACEI should: 

  • Organize a conference to address the use of potentially harmful materials and how best to collect end-of-life household products from consumers
  • Facilitate the creation of a database that organizes the information established at the conference.

STRATEGY

Issue

For four plus years, the US electronics industry, represented by ACEI, has worked with DG XI Environment to draft a directive for dealing with waste from electrical and electronic equipment.  Despite its best efforts, the present draft does not address several of the industry’s key concerns, nor does it achieve its objectives.  A different course of action is needed to ensure that any WEEE Directive accepted into EU law adequately addresses the interests of industry as well as the environment.

 

Introduction

Our aim is to provide an implementation plan for the recommendations on the proposed WEEE Directive.  By examining the interests of all parties involved, using the preceding analyses, and utilizing objective criteria such as WTO rules, we will identify which key decision makers should be targeted through lobbying and/or negotiations in order to garner support for ACEI’s recommendations.  

Just as there are two distinguishable sets of recommendations, so there are two parts to the strategy.  Part I addresses how to change the directive to reflect the interests of ACEI’s member companies.  In particular, it addresses the elimination of material bans from the directive, and the institution of a shared responsibility system for the WEEE collection and recovery of household products.  Part II introduces the idea of Joint Action with regards to dealing with WEEE.  Part I provides necessary steps for the electronics industry, whereas Part II suggests how to coordinate WEEE’s management. 

 

Part I: Strategy for Implementation of Recommendations for the WEEE directive

 

The recommendations for changing the WEEE Directive are:

  • Lobby EU Commission, Council and Parliament to remove the material bans and sole collection/recovery requirements for producers from the WEEE Directive.
  • Work closely with United States Trade Representative, lobbying for assurances that if the directive is enacted, the United States will bring a case before the WTO Dispute Settlement Body.

In order to change the directive to reflect these recommendations, both lobbying and negotiations will need to take place with key decision-makers and interested parties.  As the WEEE issue has been ongoing for four plus years, coalitions have already formed and international institutions such as the TransAtlantic Business Dialog and TransAtlantic Legislative Dialog have taken notice of the issue.  These parties and others have created a network that can be utilized to exert influence on decision-makers.  This strategy examines the interests of the decision-makers as well as the interested parties.  By doing so, a plan emerges for how to approach resolving the WEEE issue.  Lobbying and negotiations are the tools suggested to meet the strategy objective. 

 

Media Strategy

Recognizing the negative attention on trade and the environment at events such as those in December 1999 in Seattle and April 2000 in Washington, DC, public debate on the issue is not in ACEI’s interest.  In order to eliminate the two problematic provisions of the directive, lobbying and negotiations will be necessary.  There are many individuals and groups who see any attempt to change environmental legislation as negative, especially if the efforts to do so are led by what they see as the “multinational corporations” or “big business.”  There is little to gain, and more likely much to lose, if the ACEI were to employ the media to influence European decision-makers. 

However, there is a role for the media in garnering public recognition for joint action by industry and government.  The conference should be highly publicized, notifying the public that the problems associated with WEEE are being proactively and efficiently dealt with through a cooperative effort by industry and government.

 

Interested Parties

Amiercan Coalition Electronics Industry (ACEI)

ACEI’s main interest is to change the directive to represent the interests of its 3000 member companies.  In addition to its main office in Washington DC, it has eighteen councils across the US and offices in Brussels and Tokyo.  The breadth of this Association allows for grassroots level support for policy action.  As such, a WEEE coalition has already formed and boasts membership of over 200 interested members.  ACEI and the coalition have led the issue thus far and will continue to do so based on its interest in resolving the problems that the present draft of the directive represent for its member companies. 

Eurobit/ Ectel

Eurobit, in conjunction with Ectel, represents 2000 companies in the electronics sector in 14 countries in Europe.  Its interest is to change the directive to correlate with the interests of European business.  Close ties exist between Eurobit and ACEI due to their similar interests.  Together, the two combined represent nearly 5000 companies in the Information Technology industry. 

Commission

Within the Commission, all have professed their objective to lessen the impact of WEEE on the environment.  However, not all DGs agree on how best to realize this objective.  DG XI advocates for material bans and full producer responsibility for collection and recovery.  DG XXIII, on the other hand, recognizes that it is not in industry’s interest to have material bans or solely to bare the burden for collection and recovery — doing so cripples the innovative capacity of business and does not protect the environment.  DG I has been alerted (US-EU bilateral Demarche) of the directive’s potential to be an obstacle to trade and is not interested in having another trade war with the US.  Thus, with the lobbying of DGs to support changes in the draft, DG XI will not achieve a unanimous vote from the College of Commissaries.  ACEI should lobby directly Director General Erkki Liikanen for Enterprise, Director General Fritz Bolkestein for Internal Market, and Director General Pascal Lamy for Trade. It should also distribute materials to staff members under the Director Generals who specialize on this issue. 

EU Council

The Council’s main interest is to make policy based on drafts by the Commission.  In order to do so, a qualified majority is needed to approve proposed legislation. Sixty-five of eighty-seven possible votes are needed from the Member State Council representatives in order to have a qualified majority.  However, only twenty-three to twenty-five votes are needed to block a favorable vote from being accepted.  Each Member State seeks policies to reflect what is best for its people. ACEI should target the Council members from France, Germany, Italy, The Netherlands and the United Kingdom because the WEEE Directive represents a substantial burden to businesses in these key states.  Votes from these countries alone equal forty-five.  These countries also make up the majority of EU trade with the US and are home to many US companies that provide continuing increases in growth and employment.  These countries stand to lose the most from an US-EU WTO trade dispute. The aforementioned Member States have both the incentive and the ability to block the WEEE Directive if it is not changed.  

EU Parliament

The central interest of the Parliament is to insure that EU policy making reflect the interests of the people.  Based on submissions made by citizens, the Parliament will establish a committee to investigate policies drafted by the Commission.  Consultations conducted by the Commission have already noted the ill affects the directive would have on business, without adequate protection of the environment.  Further submissions to the Parliament will raise awareness and committees will be formed.  If a satisfactory result does not emerge, the Parliament can alter the proposal when it comes to the floor for a vote.   

In order for a piece of proposed legislation to pass through Parliament, 314 votes are needed.  Votes from France, Germany, Italy, The Netherlands and the United Kingdom add up to 391 votes.  If the draft is not changed, and the Member States, especially those mentioned above, do not see it to be in their interest, they can block passage or edit it before approval.  Therefore, ACEI should lobby Parliamentarians from the five countries to block passage of the directive if it is not changed. 

TransAtlantic Business Dialog (TABD)

The TABD’s interest is to facilitate cooperation between the transatlantic business community and the governments of the EU and US. This is accomplished through an informal process whereby European and American companies and business associations develop joint EU-US trade policy recommendations, in conjunction with the European Commission and US Administration.  The TABD has played an active role thus far, issuing briefs and communiqués to the EU on the WEEE issue.  Their recommendations for the directive mirror those of this project.  The TABD should continue to coordinate efforts to resolve this issue.  Continued efforts to influence more DGs will increase the chances for achieving industry’s objectives. 

TransAtlantic Legislative Dialog (TALD)

The interest of this outfit is to pair US and EU policy makers with their counterparts to discuss issues of mutual interest.  This dialogue is designed to share information and to help alleviate potential problems that may arise for one by legislation drafted by the other.  The TALD is a pertinent forum to discuss WEEE.  

US Congress

Members of the House and Senate from states where the high-tech industry is located would be interested in this issue and may choose to take it up through the TALD.  States such as California, Oregon, Washington, Texas, Virginia, Florida, and New York all have a vested interest in changing the WEEE Directive.  Representatives and Senators from these states (some of whom constitute Congressional leadership) would be very interested to learn of the potential negative effects of the directive.  ACEI member companies should talk with Representatives and Senators in their districts and states, impressing upon them the importance of this issue.

 

United States Trade Representatives (USTR) Office

The USTR monitors potential barriers to trade.  The WEEE Directive is already on their radar screen.  USTR’s main interest is to avoid another trade conflict.  A resolution to the issue is preferred, but due to volatility of trade relations between the US and EU, the USTR is not likely to back down from a fight over this issue.

 

Environmental Protection Agency(EPA)

The EPA is interested in promoting the same objectives that DG XI advances in the directive.  It may also be interested in forming its own proposal for WEEE if Europe is successful in doing so.

Avenues for ActionBy examining the interests of the parties involved in the issue, several avenues for action emerge.  Presently, the directive is under wraps in the Commission at DG XI.  No one knows what will be the result of the actions taken by DG XI, so the best course of action right now is to lobby other key decision-makers on the shortcomings of the directive and on the benefits of the recommendations herein.  Because DG XI is only the starting place for the WEEE legislation, the thrust of the strategy is to contact all other parties and to convince them of the need to eliminate the key provisions of the directive.  In effect, this strategy is to establish support for ACEI’s position at every legislative and influential station outside of DG XI.  That means that other DGs in the Commission and majority members in the Council and Parliament must be on side.  In order to accomplish this, ACEI must utilize the coalitions it has formed and tap into the transatlantic dialogues that exist to influence key decision-makers.  In case the strategy does not work, ACEI must also work with USTR to secure its assurance that the US will take the EU to the WTO for violations embodied in the directive.  

EU Commission Strategy

There is already dissension within the ranks of the Commission (see Political Analysis).  DG XXIII Enterprise does not share the same view as DG XI pertaining to the WEEE Directive.  The focus of the strategy for the Commission is to form a consensus on removing the material bans and the collection and recovery requirements.  By doing so, the lack of unanimous support from the College of Commissaries will force DG XI to be open to changing the draft.  At this stage, DG XI and the rest of the Commission can negotiate the elimination of the provisions from the draft.  

ACEI should target the Commissioners in order to impress upon them the potential negative affects the directive would have on the areas they represent as well as the problems that would be caused for the Commission with the Council and the Parliament.  The ACEI Brussels office and the Coalition led by Jennifer Guhl at ACEI in Washington, DC will be instrumental in lobbying the Commissioners, as will Eurobit/Ectel.  

EU Council and Parliament Strategy

The strategies for the Council and for the Parliament are similar.  As noted above, a certain number of votes are needed for passage in the Council and the Parliament — the Council sixty-five and the Parliament 314.  By targeting the members of the two bodies who represent the leading electronic sector economies, enough votes will be collected to change the directive, or at the very least block its passage.  

Just as with the Commissioners, letters, phone calls, faxes, briefing sessions, lunches, dinners and meetings with the representatives from France, Germany, Italy, The Netherlands and the United Kingdom are necessary to lobby effectively for the recommended changes to the WEEE Directive.  

US Congress

Strategic meetings with key Senators and Representatives on Capital Hill will help garner domestic support for the efforts of the USTR, TABD, and WEEE Coalition, as well as provide the TransAtlantic Legislative Dialog with industry arguments and viewpoints on why and how the draft should be changed.  Meetings with key members from high-tech states[1] are the first course of action.  

BATNA

USTR Strategy

Maintaining contact with the USTR is imperative.  Continually providing support and assistance on the issue will enable the USTR to communicate effectively to the EU Commission on what is wrong with the draft.  Letters of support, and the inclusion of USTR on email lists pertaining to WEEE, will keep USTR in the loop.  The key contact at USTR is Jim Sanford.  He and his boss Kathy Novelli are apprised of the situation.  Continued contact by member companies will also provide USTR the support needed to take future action on behalf of the electronics industry.  

Conclusion

Part I coordinates several sub-strategies to create one overall strategy.  This overall strategy is to ensure support from all decision-makers involved in the process outside of DG XI.  The goal is to make DG XI realize that the directive in its present form is not likely to pass into law. Realizing this, DG XI will revise the draft to better represent the electronics industry and provide a net benefit to the environment.

 

Part II: Strategy for Joint Action  

The recommendations for Joint Action are:  

  • Organize a conference to address the use of potentially harmful materials and how best to collect end-of-life household products from consumers.
  • Facilitate the creation of a database that organizes the information established at the conference.

In order to implement these recommendations, government and industry must share information.  A conference should be held with all the contributors to the life and end-life use of electrical and electronic equipment (i.e. industry leaders, technicians, product designers, waste management, recyclers, etc) along with policy-makers, scientists, and academics. Participants should discuss material bans and develop a system of shared responsibility to deal with the collection and recovery of household waste from electrical and electronic equipment.[2]  The OECD may be the best venue for such a conference.  The basis for banning a material should be sound science.  The goal of the conference should be to utilize data submitted by industry on the applications of materials in order to establish a protocol for which substances in which applications are allowed to be banned, due to the scientific determination that they are harmful to the environment.  The findings of this conference should then be compiled in a database that can be used by nations worldwide. 

Part II represents a plan that both industry and government can incorporate to deal proactively with WEEE.  While the focus of this strategy and indeed the project has been on the US and the EU, such other countries as Australia, Canada and Japan have also been following the WEEE Directive issue.  Including industry and government from these countries would improve the chance for a multilateral mutual recognition agreement on how best to deal with WEEE. The creation of a streamlined requirement regime would be in the best interest of all nations and all producers, and it would serve to protect the environment in more places than just Europe. 



[1] Refer to ACEI in-house Document: House and Senate High-Tech Scorecard for key players.

[2] See attached White Paper: PROACTIVELY DEALING WITH WASTE FROM ELECTRICAL AND ELECTRONIC EQUIPMENT for more detailed information on the Conference and its make-up, objectives, and participants.

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