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EU plan to label origin of item 'would increase cost to consumer'

EU plan to label origin of item 'would increase cost to consumer'

Write: Morenwyn [2011-05-20]

The European Commission says the move will give shoppers the opportunity to know where goods such as shoes are produced.

But business and consumer groups have condemned the scheme, saying it would create more bureaucracy and make such goods more expensive.

At present, companies in the UK and other member states are free to choose whether or not to indicate where goods imported from outside the EU have been produced.

Under the proposal, which is backed by Britain's EU trade commissioner Catherine Ashton, a range of consumer goods imported into the UK from outside the EU's 27 member states would have to carry a "made-in" label.

The scheme would apply to textiles, clothing, shoes, leather and furniture and the cost would have to be met by importers and retailers in each member state.

It would not affect goods traded between EU countries.

The labelling scheme was first mooted by the commission four years ago but was rejected by the majority of member states, including the UK.

However, the commission is believed to be keen to revive the idea and yesterday Baroness Ashton joined MEPs at Strasbourg in attempting to generate more widespread support for the proposal.

Her spokesman said: "Nothing has been decided but it is felt that having clearly-visible labels on products such as clothing and shoes will help consumers."

The plans, however, were condemned by the EU-wide body which represents business and consumer groups.

Ralph Kamphoner, of Brussels-based EuroCommerce, urged the commission to scrap the plan which it describes as "counter to the aim of boosting business and reducing red tape".

He said: "According to the commission's own impact assessment, the label could cause extra costs of up to £1.36 per article for clothing and £1.82 per item for footwear.

"In global production chains, products are often processed in different countries. Indicating one single country of origin would be misleading for British consumers. Such a measure would also require UK companies to undergo lengthy controls at customs."