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The proposed new extensive EU legislation on chemicals is known as REACH, which stands for Registration, Evaluation and Authorisation of Chemicals. It is expected to become law within the next year.

 Though targeted at the industrial chemical sector, this proposed regulatory regime will also have a direct impact on biotrade products, notably essential oils. Andrew Jones, a consultant to BTFP explains:

 “In relation to biotrade products, one category of chemicals that is exempt from the requirements of REACH is “substances occurring in nature…not chemically modified during manufacturing unless they meet the criteria…as...dangerous...”  [S]ome of the biotrade suppliers do have existing products that are within the scope of REACH. These are, generally, essential oils and colouring materials.

 “Most companies in the biotrade programme already struggle to satisfy the requirements of the existing Safety Data Sheets due to financial or technical constraints, or both.  More effort will be required in this area to build up the capacity of local technical service providers to support the exporters. This needs to be complemented by careful evaluation of the return on any investments in new substances within the biotrade programme.”

 Interestingly, the proposed REACH legislation is strongly supported by WWF. They state that REACH:

 “... could make an important contribution to reducing risk to wildlife and humans from chemicals by identifying and phasing out the most harmful ones. REACH also offers an opportunity to promote a sustainable, innovative and forward-looking chemical industry.”

Nevertheless, the impact that this legislation will have on rural small and medium biotrade business in developing countries is likely to be significant. These businesses simply do not have the means to comply with REACH. Not only will development objectives be undermined, but so will producer innovation and consumer choice in Europe.


The following documents provide background information on this matter:

 Government of Netherlands discussion paper

UNCTAD discussion paper

EFEO position paper

EFEO proposals