Implications of reach for the Developing Countries

Studju 05-03-2006

The study deals with the proposed regulatory framework for chemicals (REACH, COM (2003) 644 final of 29 Oct.2003), which causes considerable unease among developing countries on account of the burden that REACH 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. Finally, technical assistance, capacity building, access to information and direct support for small and medium enterprises are examined.