On April 15 2014, the European Parliament adopted a proposal reinforcing consumer product safety. The new regulation creates a mandatory “made in” label for all non-food products.
Manufacturers, importers and distributors will be obligated to state the country of origin of the product, whether it was made in the EU or not. If the good was produced in the EU, the maker can choose to label either the country of fabrication or the EU in general. To prevent abuse and wrongdoing regarding this label, proportionate and dissuasive penalties will be set up.
The aim of the regulation is to improve the monitoring of the market. It represents a major progress for the transparency of the supply chain.
Today, countries which rely on the luxury industry such as France are favorable to the proposal in hopes of promoting its goods.
However several countries, including Germany and the UK, are opposed to the new rule. Indeed, their products are well known for their quality but they are now manufactured mostly outside of the EU. Therefore, the “made in” label might negatively impact those products’ reputation. This new rule would therefore be anti-free-trade and protectionist.
The proposal is now pending validation by the Council before it can become enforceable.
To be continued…