Chamber Urges EU to Rethink Chemical Regulations

WASHINGTON, D.C. – The United States Chamber of Commerce urged the European Union to rethink its proposed approach to testing, registering and restricting chemicals and chemical products in the European market, in comments filed with the European commission.

"The draft regulation's underlying assumption is that all chemicals are inherently dangerous and all producers are irresponsible polluters," said Gary Litman, Chamber vice president for Europe and Eurasia. "This is a regulation based on fear and superstition, rather than fact."

The Chamber has serious concerns about the principles of the proposed chemicals policy and the negative consequences it may have on economic growth in both Europe and the United States. "The regulation advances questionable policies and goals without a realistic cost-benefit analysis. It also has structural flaws that may result in inequitable treatment of American companies and products," said the Chamber in its comments.

Each year, the U.S. exports more than $20 billion worth of chemicals to Europe and invests more than four billion dollars in the EU's chemical and related sectors. A blanket mandatory system of testing, evaluation, registration and restriction of all man-made chemicals in the European market by yet to be set-up European authorities means a complete overhaul of a well-functioning global industry.

The regulation will create new administrative burdens for any innovation involving chemicals or manufactured goods, force many smaller companies out of the business of producing specialty chemicals, impose technologically unjustified substitutions, create new liabilities for both producers and industrial users of chemicals, and potentially disrupt U.S. manufacturers' access to the E.U. markets.

"This proposed regulations will cost billions of dollars every year, while the possible benefits – if any – are unclear," said Litman. "We urge the European commission to reconsider its proposal and to work with the United States to advance scientifically-based regulations for known chemical hazards."

The U.S. Chamber of Commerce is the world's largest business federation representing more than three million businesses and organizations of every size, sector and region.

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