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The proposal reworks an earlier draft for EU-wide legislation, setting out a far-reaching testing, data registration and authorization system for chemicals in circulation in the European Union. The plan, known by the acronym REACH (“registration, evaluation and authorization of chemicals”) will be costly, with industry shouldering much of the burden. The initial proposal would have cost up to $35 billion to implement, according to the Commission's own study. The Commission says it has brought that figure down to under $3 billion.
“The new text reflects some revisions, but retains the fundamental problematic attributes of the previous proposal,” according to Norine Kennedy, USCIB’s vice president for environmental affairs. “REACH still requires costly and burdensome pre-registration and extensive data gathering throughout the supply chain with questionable environmental or health benefit. It still burdens downstream users as well as chemical producers.”
The issue promises to be front and center when USCIB members meet with Commissioner Liikanen in New York on November 3.
Last month, the International Chamber of Commerce echoed USCIB’s concerns
about the economic impact and environmental necessity of the EU proposal. ICC called for thorough assessment of the REACH proposal, to evaluate the proposal's impact on EU member states (current and incoming) and on EU trading partners.
In response to its earlier version of the directive, the EU received extensive critiques of REACH from numerous companies and business groups, with a clear consensus emerging that the proposal was unwieldy and would impose unnecessary costs.
The proposal also raised red flags from key governments. In a joint letter, the leaders of the U.K., France and Germany expressed concern about the lack of prioritization among the substances targeted by REACH, indicating that it was "still a long way from being the fast, simple and cost-effective procedure that was promised." The letter also highlighted the damage REACH would have on EU competitiveness.
The U.S. government has indicated it is studying the draft directive.
Staff contacts: Norine Kennedy
and Kris Knutsen
Media contact: Jonathan Huneke
ICC statement on REACH (Word file)
USCIB comments on REACH
More on USCIB’s Environment Committee
More on USCIB’s European Union Committee
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