Appendix 5: Description of the "New Substances" Industry Sector in Canada

The industry sectors most immediately affected by the NSN Regulations include those that manufacture, import or depend on access to substances not on the DSL. This is primarily the specialty chemicals industry and their industrial customers, especially that segment in which product technology is rapidly changing. This category includes dyestuffs, paints and coatings, adhesives, sealants, specialty organics, photographics and printing, ingredients of plastics, etc. The NSN Regulations also affect a broad range of customers of the chemical specialty industry, from the producers of soaps and detergents to the manufacturers of furniture or the formulators of crankcase oils. The Industry Co-ordinating Group (ICG) is an umbrella group composed of representatives of many industry sectors that are affected by CEPA and its Regulations. The ICG acted as a coordinating body for the consultations on the revised NSN Regulations for its member associations and other interested industry groups. (See a list of member associations below.)

Compared with larger industrial nations, Canada can be characterized as a significant exporter of commodity chemicals generally produced in large volumes and an importer of specialty chemicals generally produced in small volumes. In the area of specialties, Canada is not a leader in the synthesis of new substances; however, it is very innovative in the application of new substances, e.g., new coating formulations, adhesives, formulated plastics, etc. Access to new substances is essential to allow the specialty chemicals industry to continue to be active participants in Canadian commerce and to provide gainful employment.

Access to new product technology from the specialty chemicals industry is also essential for the continued health of manufacturing industries, such as automobiles, trucks, textiles, formulated plastics, paper products, etc. In many cases, the Canadian supplier of custom products to these industries plays an important role in their continued success. In other cases, Canadian customers can obtain from foreign suppliers finished products or articles manufactured using new technology.

Using Standard Industrial Classifications representing those chemical substances subject to the NSN Regulations (SIC 3711-12-31-99, inorganic chemicals, organic chemicals, plastics, resins and specialty chemicals), Statistics Canada data for 1996 suggest a total domestic market for primary chemicals and polymers of $19.8 billion (1996 $).

• Canadian Association of Chemical Distributors
  
• Canadian Chemical Producers' Association
  
• Canadian Electricity Association
  
• Canadian Fragrance Materials Association
  
• Canadian Importers Association
  
• Canadian Manufacturers and Exporters
  
• Canadian Manufacturers of Chemical
  
• Specialties Association
  
• Canadian Paint and Coatings Association
  
• Canadian Petroleum Products Institute
  
• Canadian Plastics Industry Association
  
• Canadian Textiles Institute
  
• Crop Protection Institute of Canada
  
• Ecological and Toxicological Association of Dyes and Organic Pigments Manufacturers
  
• Forest Products Association of Canada
  
• Mining Association of Canada
  
• Soaps and Detergents Association