[OPE-L] Studies on EU Chemicals Policy

From: glevy@PRATT.EDU
Date: Mon Sep 25 2006 - 13:52:48 EDT

----- Original Message -----
From: Minona Heaviland
Sent: Monday, September 25, 2006 1:28 PM
Subject: Two New Studies on EU Chemicals Policy from GDAE

GDAE Studies Examine Effects of the EU's New Chemicals Policy on U.S.
Exporters and Developing Countries

Two new studies conducted by Frank Ackerman, Rachel Massey, Liz Stanton,
and others at GDAE provide a bottom-up recalculation of the expected costs
of the European Union's proposed new chemicals policy, and examine its
effects on U.S. exporters and on developing countries. The EU's new
policy, REACH: Registration, Evaluation, and Authorization of Chemicals,
will make manufacturers and importers responsible for registering and
testing any chemicals that they sell in Europe. REACH has been the subject
of extensive controversy - including a focus on its potential costs. The
GDAE analyses find that the costs of REACH are affordable and unlikely to
harm industry, while other researchers have suggested that the health and
environmental benefits of REACH will be substantial.

European Chemical Policy and the United States: The Impacts of REACH
by Frank Ackerman, Liz Stanton, and Rachel Massey; GDAE Working Paper
06-06. September, 2006.

Download from the web at:

Under REACH, chemicals produced elsewhere, such as in the United States,
and exported to Europe will have to meet the same standards as chemicals
produced within the European Union. What is at stake for the U.S. is
substantial: we estimate that chemical exports to Europe that are subject
to REACH amount to about $14 billion per year, and are directly and
indirectly responsible for 54,000 jobs. Revenues and employment of this
magnitude dwarf the costs of compliance with REACH, which will amount to
no more than $14 million per year. Even if, as the U.S. chemicals industry
has argued, REACH is a needless mistake, it will be far more profitable to
pay the modest compliance costs than to lose access to the enormous
European market.

Implications of REACH for the Developing Countries
by Frank Ackerman (principal author), Liz Stanton, Rachel Massey, Brian
Roach, and others; report from the International Chemical Secretariat
(Chemsec) to the European Parliament. March, 2006. Also translated in

Download from the web at:

REACH has caused considerable unease among developing countries on account
of the burden that it may impose on them in terms of their market access
to the EU. The study explains the functioning of REACH and examines the
socio-economic impact on the developing countries with special focus on
the ACP States, in particular on South Africa, Mozambique, Jamaica, Ghana,
and Tanzania. It investigates possible changes in the patterns of
competitiveness and trade flows. Particular emphasis is placed upon the
role of multinationals compared to local producers. Furthermore, the study
highlights the macroeconomic impact of REACH as far as employment and
government revenue are concerned. It also examines the cost and benefit of
REACH for the ACP States.

Further GDAE Research on REACH: GDAE researchers have also examined the
effects of REACH on French industry, produced a guide to assist smaller
companies in understanding the implications of REACH, and written several
op-eds and working papers discussing the impacts of REACH.

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