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The Biggest Trade Barrier To Enter WTO Hits Hunan

2008/8/30 11:52:00 24

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A law known as "the biggest technical barriers to trade since China's accession to the WTO" is hitting domestic enterprises and Hunan enterprises in an all-round way.

The European Union's "Regulations on registration, assessment, licensing and restriction of chemicals" (REACH regulations) was implemented in June 1, 2008 and has been pre registered.

According to the regulations, the substances contained in products exported to EU by non EU member enterprises are within the scope of REACH regulations, and their products will not enter the EU market from December 1, 2008 onwards without prior registration in November 30, 2008.

A serious problem is that the REACH regulations have been implemented for nearly 3 months, and the Hunan enterprises that have completed the pre registration of REACH regulations are "very few".

In August 27th, Jiang Hengshu, director of the World Trade Department of the Hunan Provincial Department of Commerce, was very heavy.

數千種出口產品受到波及

On the surface, the REACH regulation is a chemical act that affects the export of Chinese chemical products to the European Union.

In fact, chemicals are only "tip of the iceberg", and downstream products of chemical products are all affected and hurt.

These include household appliances, textiles, clothing, footwear, toys, light industry, electronics, automobiles, pharmaceuticals and so on.

As early as the formal implementation of the REACH regulations, there were experts' analysis, because REACH, the trade between China and the European Union will be affected by 140 billion euros, and the whole trade pattern of China and Europe and even its upstream and downstream industrial structure will face a major reshuffle.

Jiang Hengshu said that although the power of the REACH legislation is not enough to affect all trade between China and Europe, it has been very extensive.

At present, thousands of chemicals and thousands of chemical downstream products exported to the EU will face registration, evaluation or even authorization and restriction.

As far as Hunan is concerned, the analysis of the provincial commerce department and the provincial council for trade promotion also shows that this regulation will have a significant impact on the export enterprises of chemical industry, medicine, nonferrous metals, fireworks, daily chemicals, inks, coatings, alloys, plastics, resins, chemical fiber, stationery and other industries in Hunan.

The European Union has always been Hunan's largest trading partner.

Data show that in 2007, the bilateral trade volume between Hunan and the EU reached 2 billion 69 million US dollars, an increase of 54.5%%, of which exports amounted to US $1 billion 298 million, an increase of 51.3%%, accounting for 19.8% of the total.

In the list of enterprises with more than US $1 million exported to the EU in 2007 by Hunan provincial chamber of Commerce, a group of Hunan export giants such as Valin, Xianggang, Lian steel, Sany, Shan He intelligent and Hualian porcelain all rank among them.

They will all be more or less affected.

湖南企業應對遲緩

As soon as the REACH regulations came into effect, it caused huge repercussions. Some commented that this is "the biggest technical barrier to trade since China's accession to the WTO and the biggest barrier to trade".

An official of the Fair Trade Bureau of the Ministry of commerce also said that this is a typical technical trade barrier.

"If we fail to respond in time, the consequences will be quite serious."

Jiang Hengshu said.

But at present, many enterprises are still not familiar with the REACH regulations, and the number of pre registration is even fewer.

In 2007, a survey involving 3000 related enterprises showed that enterprises with 38%% did not know what REACH was.

Even if we know, many enterprises are also in the middle of it, hoping to wait for the organization and call of the government and industry associations.

Against this background, the two major economic and trade departments of the Provincial Department of Commerce and the provincial council for promoting trade have begun to act.

In September 10th, the Hunan provincial council for Trade Promotion (CCPIT) will organize a special training seminar entitled "dealing with the EU REACH regulations and international arbitration practice" in Changsha. We invited Spanish chemical information expert MS.Mercedes Forner Talaero and Deng Luoxing, vice chairman of the Changsha Office of the China International Economic and Trade Arbitration Commission, respectively, to introduce the contents of the EU REACH law and the practice of international arbitration.

(Registration Number: 47733574773376)

In September 11th, the provincial chamber of Commerce will also organize a training course to deal with REACH regulations in the whole province. The experts of the two chamber of Commerce of the Ministry of Commerce, the only designated REACH regulation and service institution, China's five minerals and chemicals import and export chamber, will teach the following contents: the main contents of the EU REACH regulations and its impact on China's export to the EU; and the enterprises should deal with the REACH registration practice and REACH registration procedures and requirements.