Stephanie Salmon, AFS Washington Office; Jeff Hannapel & Christian Richter, The Policy Group, Washington, D.C.
WASHINGTON ALERT
Text of Trans-Pacific Partnership Agreement Released
ACCORDING TO THE DEAL, 45% OF A VEHICLE WILL HAVE TO BE SOURCED WITHIN THE PARTNERSHIP TO AVOID TARIFFS.
On November 5, the Obama
Administration released the text of the Trans-Pacific Partnership (TPP), a recently negotiated trade agreement between the United States, Japan and 10 other Asia-Pacific countries, setting the stage for a divisive fight in Congress. China was left out of the TPP. Te deal stipulates that only 45% of a vehicle will have to be sourced from within the TPP, down from a comparable 50%-plus level under the two-decade old North American Free Trade Agreement (NAFTA) rules, which are credited with driving an auto industry boom in Mexico. It sets a local sourcing threshold of 35% to 45% for individually-traded auto parts. Te TPP rules mean that more than half of a vehicle could be sourced from outside the 12 countries
ON THE HILL
Senate Votes to Repeal EPA Clean Water Rule
Last month, the U.S. Senate approved a resolution of disapproval against the U.S. Environmental Protection Agency’s (EPA) Clean Water Rule, a measure that if enacted would nullify the controversial EPA/Army Corps of Engineers regulation. However, the White House issued a veto threat against the resolution, virtually ensuring it will not become law.
S.J.Res. 22, sponsored by Sen. Joni Ernst (R-Iowa), invokes the Congressio- nal Review Act, which allows a simple majority of the House and Senate to act to overturn recently promulgated federal regulations. The measure passed the Senate by a vote of 53–44.
OSHA Develops Tiered Inspection System
OSHA has updated its Field Opera- tions Manual (FOM) to reflect changes in how the agency will prioritize inspec- tions. The FOM is a reference document
for OSHA field personnel that outlines enforcement policies and procedures in conducting OSHA investigations. Under the new system, “Enforcement Units” will be assigned to an inspection; the simplest inspection will be one unit and the most complex inspection could be as many as nine units. With this new Enforce- ment Weighting System, OSHA will prioritize inspections as follows:
Priority Category First
Fourth Imminent Danger
Second Fatality/Catastrophe Third
Complaints/Referrals Programmed Inspections
How does this impact metalcasters? Starting now, manufacturers can expect to see an increase in the number of complex inspections performed by OSHA. Specifi- cally, OSHA notes that it will perform more inspections involving musculoskeletal disorders, chemical exposures and pro- cess safety management violations. With a greater focus on these complex safety and
health inspections, metalcasters should take the time to review their policies and procedures to ensure they meet all OSHA requirements.
AFS Urges Congress to Mitigate Impact of New Ozone Standard
AFS joined a letter urging congressio- nal action to ease the economic impact of the more stringent ozone standards finalized by the U.S. Environmental Protection Agency (EPA) in October. The letter, signed by over 50 associations, was sent to House and Senate lawmak- ers on November 6. In October, EPA lowered the standard for ground-level ozone from its current level of 75 parts per billion (ppb) to 70 ppb. EPA’s new ozone limit of 70 ppb will still create significant challenges and costs for metalcasters. The final rule goes into effect on December 28, 2015.
For additional information, contact Stephanie Salmon, AFS Washington Off ice,
202/842-4864,
ssalmon@afsinc.org. December 2015 MODERN CASTING | 17
participating in the trade pact and still be sold in the United States—the bloc’s largest market—without tariffs. But they also offer two other ways to calculate local content. Including inputs such as administration, the threshold is 55%. Ford Motor Co. is urging Congress
to reject the TPP because it doesn’t include any measures to battle cur- rency manipulation — where Asian countries, specifically Japan, work to keep their currency low against the dollar to make their products cheaper than U.S. products sold in Asia, un- dercutting U.S. manufacturers.
Ford is urging Congress to reject the partnership, citing currency manipulation by some members.
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