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Textile exporters to face a new challenge
Feb '08
Thai exporters will have to face the heat of REACH (Registration, Evaluation and Authorization of Chemicals) regulations issued by the EU.

Exporters, who were until now unaware about the regulation, fear losing revenue of about 10 billion baht a year, which it exacted from the EU market. REACH is likely to affect more than 100 house-ware factories exporting to the European markets.

As a matter of fact, EU stands out as the third largest market for Thai house-wares after United States and Japan, doling out nearly 30 percent of the 40 billion baht earned by Thailand from exports.

REACH essentially aims at putting a check on hazards to human health and environment by using harmful chemicals. The regulation urges manufacturers to declare information about chemical substances used in the products exported for EU markets.

It is believed that the new regulation would mainly affect exports of Thai products like textiles, garments and furniture.

Furniture exports in 2007, amounted to more than 50 billion baht, including 10 billion to the EU.

Experts opine that the only solution to this unexpected implementation of REACH regulation is to comply by its clauses and ensure continued exports to the European countries.

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