Impact assessment of implementing GHS (Globally harmonised system of classification and labelling of chemicals) – trade effects

Practice Area: Public Policy
Client: EC DG Enterprise and Industry
Published: May, 2006
Tagged: EC/EEA ex-ante evaluation quantitative analysis report

In July 2003, the Globally Harmonised System of Classification and Labelling of Chemicals (GHS) was formally adopted by the UN ECOSOC. Its aim is to bring together the major world classification and labelling (C&L) systems of chemicals (substances and preparations/mixtures) into a single new system. This part of the impact assessment provides empirical evidence on the likely trade impacts of GHS implementation.

The emphasis is on the chemicals exports from and imports into the EU area. The methodology employed for this work has three main components: estimation of an empirical relation between trade flows and trade barriers; estimation of the change in the level of relevant barriers resulting from GHS implementation; and estimation of the total trade impact of GHS, taking into account the two above.