A recent meeting of the European Union’s Competitive Council has reinforced the proposed changes to the Reach directive (the Registration, Evaluation and Authorisation of Chemicals) which could levy heavily on Europe’s chemical and leather industry.

Trade ministers and European commissioners provisionally agreed on a rule that would require every business that uses chemicals to have them tested and registered, including any chemical combination. Whilst trying to ensure safety and environmental care, the proposal has had a bad reception from Europe’s leather industry which uses approximately 6,000 chemical substances to process the 400,000 tonnes of leather a year.

European Chemical Industry spokesman, Rene van Sloten, has criticised the move, adding “Studies in France and Germany suggest in the worst case a million people could lose their jobs as a consequence.” This would happen at a time when Europe’s industry is already largely threatened by competitors from Asia. “We will see that many chemicals will disappear from the market that do not pose any health or environmental risk at all.”

The cost of registration is expected to add 200% to costs on small volume production and add 6% to the price of finished leather, hitting small producers the hardest. The introduction of the Reach proposals is also expected to cost Europe between €3 billion to €10 billon. It would replace over 40 existing EU directives and regulations.

Colin Powell, the outgoing US Secretary of State, is leading lobbying efforts against the plan that would affect all American exports. The American Chamber of Commerce to the EU has issued the following statement: “Reach, as proposed, will impose excessive burdens and exaggerated costs on industry and generate an overwhelming bureaucracy. This will stifle innovation.”

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