With the EU Reduction of Hazardous Substances (RoHS) directives now being enforced in the 30% of the global economy they represent, we face an important decision here in the US. Should we adopt the same requirements as the law of the land, or should we just let market forces govern how each state chooses to deal with this, and other upcoming issues about electronics and the environment?
From what I can see, failure to harmonize our RoHS laws with the EU would be a grave disservice to both the US electronics industry and our nation's environment.
In his recent guest editorial, Paul Tallentire, President of electronics distributor NewarkInOne, explained that the costs manufacturers will face when they attempt to comply with a patchwork of statewide RoHS laws will far outweigh the cost of compliance with the stringent European standards:
"Increasing and varying state-by-state rules are already causing problems for electronic manufacturers and distributors. The cost of tracking and meeting varying state requirements both now and in the future is almost too staggering to contemplate. Are we going to wait until we have 50 state laws with 50 flavors before we enact a uniform national standard for our industry? Or worse, are we going to wait for major cities to begin enacting their own individual laws?"
Things get even uglier when it comes to e-waste regulation which governs how electronic products are collected, recycled, or otherwise disposed of at the end of their useful life. The single EU single WEEE (Waste from Electrical and Electronic Equipment) directive is already helping continent-wide electronics recovery networks enjoy economies of scale that cannot be matched in the US as manufacturers struggle to develop separate policies and programs to deal with close to a half-dozen widely divergent regional policies.
Given his cantankerous free-market sentiments, it was surprising to see our Editor-in-Chief, Paul McGoldrick, echo Mr. Tallentire's sentiments in his recent editorial Price of Beijing, wherein he points out the high price a country may have to pay for neglecting Europe's emerging environmental requirements for electronics manufacturers.
Although lightly-regulated free markets are, by-and-large, the best way to promote efficient and profitable industries, there are times when applying some market-based government stewardship is appropriate and effective. By providing guidance that harmonizes industry practices with the global market and providing a level playing field which does not penalize companies for being environmentally responsible, national RoHS/WEE regulations could help keep us competitive both here and abroad -- and help ensure we get to pass a cleaner, healthier world on to our grandchildren.
But that's just my opinion. What do you think?
Would nationwide regulations on RoHS and e-waste processing be a boon to our economy, or just more creeping socialism that threatens to strangle an already-endangered electronics industry? Regardless of how you feel, please take a moment to weigh in with your thoughts on our blog, and to vote in NewarkInOne's poll which runs until October 26th. I'll look forward to seeing what you have to say.
Of course you can always do the old-fashioned thing and e-mail me directly with your thoughts too.
Comments? Questions? Pet economic theories? Write me at: lhg@en-genius.net
