US COMPANIES RESPOND FAVORABLY TO TAIWAN EPA'S NEW

UNCLAS TAIPEI 003616 SIPDIS STATE FOR EAP/RSP/TC AND OES/IHA STATE PLEASE PASS TO AIT/W, USEPA AND USTR USTR FOR KI, USEPA FOR OIA/THOMPSON USDOC FOR 4431/ITA/MAC/AP/OPB/TAIWAN/MBMORGAN USDOC FOR 3132/USFCS/OIO/EAP/ABACHER/ADESARRAN USDA/FAS/ITP/MEYER, FARINA USDA FAS FOR ITP/AAD USDA FAS FOR CMP/GFD, COTS E.O. 12958: N/A TAGS: ECON KTDB SENV TW ESTH SUBJECT: US COMPANIES RESPOND FAVORABLY TO TAIWAN EPA'S NEW DRAFT PACKAGING RULE A) TAIPEI 03242 B) TAIPEI 03145 C) TAIPEI 02673 D) TAIPEI 03180 ¶1. Summary. In July 2004, Taiwan's Environmental Protection Administration (TEPA) introduced a draft rule to limit excessive packaging. In response to industry opposition to the rule, TEPA issued a revised draft of the rule on October 12. As reported in ref A, the second draft is much narrower in scope than the original. Costco and Proctor and Gamble, which initially strongly opposed the rule, are now both satisfied with the changes and with TEPA's response to their concerns. End Summary. BACKGROUND -------------- ¶2. As reported in Refs A-D, TEPA is eager to finalize regulations to restrict excessive packaging of goods in order to reduce waste, and move Taiwan towards its ultimate goal of complete recycling and zero waste by 2020. Initially TEPA was hoping to finalize the rule by September ¶2004. However, in part due to the strong negative reaction of foreign industry as reported in reftel B, TEPA has redrafted the rule and postponed its time-line for implementation. US COMPANIES SATISFIED WITH CHANGES -------------- ¶3. As reported in Ref A, the second draft of the rule issued on October 12 significantly narrowed the scope of the rule. Following the issuance of the draft, AIT informed both AmCham and key US companies of the changes and of the deadline to comment. In anticipation of the comment deadline at the end of this month, AIT followed up with the two US companies, which had expressed the most opposition to the initial draft of the rule. Those companies, Costco and Proctor and Gamble, are now both satisfied with the changes to the rule and with TEPA's willingness to work with them to accommodate their concerns. Neither company plans to submit any formal comments as all of their major concerns have already been addressed. Paal