Implications of REACH for developing countries

Abstract

The new European Union (EU) chemicals regulation, the Registration, Evaluation and Authorisation of Chemicals, or REACH, went into effect in 2007. In the extensive advance discussion of the expected impacts of REACH, questions were raised about the effects of this new chemical policy on developing countries. In particular, will it harm the economies of the group of African, Caribbean and Pacifi c (ACP) countries that historically have been connected to Europe? We found, in brief, that there are only limited, isolated cases where REACH could be problematical for ACP exporters. Almost all ACP exports subject to REACH face insignifi cant obstacles from the new regulation.

Linkages between Environmental Policy and Competitiveness

“…There can also be additional savings that result from innovation offsets, unanticipated technological development, unanticipated market reaction, or unmeasured complementarities between environmental activities and the non-environmental production (Bailey et al, 2002;Morgenstern et al, 2001;Sherrington & Moran, 2007). Finally, early estimates of abatement costs may represent overestimates simply because over the negotiation process of the regulation, requirements are often modified to reduce competitiveness concerns (Ackerman et al, 2008).…”

“…(p. 5) Another recent application example for an ex ante assessment of competitiveness impacts of environmental policies is the 2007 implementation of the EU chemicals regulation REACH (the Registration, Evaluation and Authorisation of Chemicals). According to Ackerman et al (2008), the industries that are affected by REACH "expressed grave concern in advance, suggesting that costs might be enormous. However, after years of research and debate, there are no credible, published estimates of REACH compliance costs that are large enough to justify these concerns" (p. 26).…”

Analysing Exports in South Africa’S Chemical Sector: A Panel Data Approach

“…The Southern African Development Community (SADC), European Union (EU), United States of America (USA), India and Japan make up the most important export destinations of chemical manufactured goods from South Africa (DTI, 2006). South Africa is the African, Caribbean, and Pacific group of countries' (ACP) major chemical exporter (Ackerman, 2006). Exporters in the chemical industry are exposed to challenges that are tariff as well as non-tariff in nature.…”