The implementation next year of new European Union trade measures - the so-called Registration, Evaluation and Authorisation of Chemicals (REACH) protocol - could encourage Thailand to become an inspection centre for food and paint products in the region.

Petcharat Eksangkul, president of the Chemical Industry Club in the Federation of Thai Industries, said last week the government should provide financial support of Bt1.5 billion to set up regional inspection centres for exports covered by the new measures.

"We should look forward to the new regulations' benefits for exports but also as a business opportunity arising from the need to establish testing centres," she said, adding that other Asean countries would send their product samples to be tested in Thailand.

The REACH measures have been drawn up to create a single standard to control dangerous chemicals in direct imports or mixed with imported products. Under the stringent new restrictions, chemical tests will be required for each tonne of imported products. This new standard will take effect in the middle of next year.

Petcharat said the restrictions would result in more costs to Thai exporters, as they will be required to register the chemicals used in their products and processes. She noted that Thailand should cooperate with Asean members to set up inspection centres for their products, depending on each country's expertise.

At a recent meeting of the Asean Chemical Industrial Council (ACIC), Thailand raised the idea of establishing testing centres in each member country, focusing on different products.

"Asean should set up its testing centres to facilitate the 10 members, depending on their expertise. Member countries also need to send their representatives to the centres to ensure standard testing," Petcharat said, adding that Asean would use ACIC as its platform to propose suggestions to the EU.

Under Thailand's proposal for food and paint inspection centres, the FTI has approached Chulalongkorn University's Faculty of Science to set up the centre for food. The faculty is equipped with experts and modern technology.

In addition, the FTI will seek cooperation with a well-know inspection institution in Germany to provide assistance to establish Thailand's centre.

"The German institute will provide more knowledge that will extend our technology to meet with EU requirements," she said.

However, the government and private sector have so far done nothing to improve their standards to meet the REACH requirements for exports, she said. The FTI has expressed

the opinion that the new restrictions will damage the country's exports.

Petcharat said that the value of Thailand's exports to the EU reached Bt507.85 billion last year, accounting for 13-15 per cent of the country's total exports. During the first seven months of this year, the value was Bt358.45 billion. Main exports include integrated circuit parts, vehicles and electrical equipment. These products will also be subject to REACH restrictions next year.

Thailand's commercial counsellor in Brussels reported that the United States has drawn up a plan to assist its private sector in dealing with the impact of the REACH measures. The US government is also encouraging exporters to register in advance to ensure smooth exports.

Watcharapong Thongrung

The Nation