ASEAN chemical players urged to speak out against E.U.'s rules

ASEAN chemical players urged to speak out against E.U.'s rules

Deutsche Presse Agentur Singapore

ASEAN's chemical industry was urged to speak out against the European Union's adoption of more stringent rules on imports at a Singapore conference ending on Friday.

The Registration, Evaluation and Authorization of Chemicals (Reach) system will hinder trade and raise costs of exports to the EU since it requires increased testing and more paperwork, said Singapore Chemical Industry Council Chairman Ooi Chwee Kim.

"The biggest concern currently facing the chemical industry is the EU's Reach," Ooi stressed. "This development has been a cause of concern for all of us in the chemical industry."

Ooi made the comments at the ASEAN Chemical Industries Club conference, a two-day event.

The EU, citing health and environmental reasons, finalized draft legislation on Reach last October. It is expected to be implemented by 2006.

The chemical industry is the second-largest component of Singapore's key manufacturing sector after electronics.

ASEAN chemical players should not accept Reach as a fait accompli, Ooi said. He urged them to raise their concerns.

ASEAN, or the Association of Southeast Asian Nation, groups Singapore, Indonesia, Malaysia, the Philippines, Thailand, Brunei, Vietnam, Cambodia, Laos and Myanmar (Burma).

Under Reach, enterprises that make or import more than one tonne of a chemical substance a year would be required to register it in a central database and include details such as the use of the product and safe way to handle it.

Chemical sales in Asia are estimated to be worth US$600 billion a year.