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Technical Barriers affect PU downstream shoes and leather exports in China

Published: 19 Aug 2009 00:47:50 PST

Along with the introduction and implements of Technical Barriers to Trade(TBT) such as RoHS Directives, WEET Directives, EUP Directives and REACH issued by European Union, it plays a significant negative effect on our export-oriented industries. At present, EU puts forward DMF Directive again.

Effects for shoes and leather sectors

According to the instruction of DMF Directives, if the products contain more than 0.1 mg/kg DMF, it will be named as “DMF products” and prohibited to enter the European markets.

Dr. Chen, the senior consultant of China WTO/TBT in Guangzhou Tongbao, suggested that factories should substitute the mould inhibitor because 0.1 mg/kg is a small content, which equalizes to not to use DMF. Once using, it will exceed 0.1 mg/kg index. She also mentioned that DMF mainly affects shoes, leather furniture and home textile factories, which will sharply affect Guangdong factories as there are thousands of such kinds of plants.

A home-textile trader told the reporter that, “we have paid much attention to REACH and take some effective measures, and therefore, we have not suffered a lot from the technical barriers.”

Loss 100 millions USD dollars because of barriers

For the moment, technical barriers are not only affecting the exporting markets and causing trade friction, but also accelerating more and more polluted products and industries being transferred to our country.

According to the statistics of Ministry of Commerce, the total output values in polluted-intensive industries account for more than half of its whole investment in China.

Guangzhou is characterized by its export-oriented economy and European markets are the chief exporting areas. In 2008, the exporting values to EU were 8.974 billion USD dollars, up 14.8% year-on-year. In the meantime, the trade loss suffered from EU Technical Barriers achieved at 100 millions USD dollars.

Dr. Chen said that technical barriers have become the second trade drawback, followed by exchange rates. According to the rough statistics, among the technical barriers, 66.1% are from European Union.