The direct and indirect costs of overregulation and the lack of transparency in the regulatory process reduce our industry’s ability to compete and prosper in the global marketplace. Regulatory uncertainty creates a risky and costly business climate, leading to high compliance costs, delayed research and development and the costs resulting from inefficient planning. Unnecessary regulations impose higher costs on the manufacturing industry and its customers. These costs stifle business investment and erode consumer demand, both of which inhibit economic growth. Reforming our regulatory system would encourage businesses to take additional risks, create more jobs and allow consumers to save or spend more of their hard-earned money.

Policymakers must –

• Make our regulatory framework more conducive to job and economic growth, ensuring that regulations solve problems, rather than benefit special interest groups.
• Require a nonpartisan, in-depth cost-benefit analysis for every proposed regulation.
• Secure congressional approval for any regulation with costs totaling more than $100 million.
• Put in place safeguards that prevent legislating by the regulatory agencies.

Coalitions and Partners:

U.S. Chamber Of Commerce

National Association of Manufacturers Conflict Minerals Task Force

As part of the 2010 Dodd-Frank Wall Street reform bill, Congress required the Securities and Exchange Commission (SEC) to write a regulation requiring certain manufacturers to report to the SEC on their use of conflict minerals (gold, tin, tantalum and tungsten). The SEC’s regulation went into effect in 2014 and there is mounting evidence this regulation is costly, if not impossible, to comply with. In addition, it has not only failed to achieve its stated purpose—to reduce violence in the Democratic Republic of the Congo (DRC)—but also has actually harmed DRC residents. The SEC has suspended enforcement of a portion of this rule, but Congress must fully repeal it.

Relevant Links:

• SEC’s Division of Corporate Finance Issues Statement on Conflict Minerals Disclosure Requirements
• SEC Halts Compliance With Most Costly Aspects Of Conflict Minerals Rule
• National Law Review explanation
• The SEC Division of Corporate Finance statement

The Metals Service Center Institute supports legislative efforts that would ensure executive branch agencies have fully considered the costs and benefits of all new substantial regulations. MSCI also supports reforms to “sue and settle” process, by which interest sue the federal government compelling its agencies to write and implement costly new regulations.