EU packaging rules threaten small exporters by fragmenting the Single Market
New EU packaging regulations require firms to register in each member state, creating costly compliance hurdles that could push many small exporters out of cross-border trade.
This month the EU enacted new regulations aimed at increasing recycling by controlling packaging composition. In practice, any company that ships goods to another EU nation must register with that country's packaging-regulation scheme and, in some cases, appoint an authorised local representative. With 27 member states, exporters could be subject to up to 26 distinct schemes, a burden trade associations label a bureaucratic monster.
Legal experts estimate registration fees of €2,000 per country and penalties of up to €200,000 or trading bans for violations, costs that small firms cannot easily shoulder. While large multinationals can manage the expense, small traders such as booksellers, wine merchants and arts suppliers may find cross-border sales unviable. The European Commission, recognising the problem, has instructed member states to refrain from enforcing the regulation or imposing penalties. The episode illustrates the clash between the EU’s green agenda and the functioning of its Single Market.
Why it matters
Costly new packaging rules could shut small EU businesses out of cross-border markets.
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