January 2006 CHANGING THE EU “METRIC-ONLY” LABELING REQUIREMENT TO “METRIC-PLUS” GIVES PRODUCERS AND CONSUMERS FLEXIBLITY  The NAM and European-American Business Council are working together to allow producers and consumers more choice on metric and non-metric labeling.  Here’s why: Current U.S. and EU Policy—Consumer and Producer Choice Current EU regulations allow flexibility on the labeling of products with measurements in metric-only or both metric and U.S. standard units (inches/pounds).  In the United States, the Fair Packaging and Labeling Act (FPLA) requires labeling in both metric and inch/pound units (dual-unit labeling) for consumer packages subject to Federal regulation.  All of the states permit wholesale (non-consumer) packages to have metric-only labeling and all but four states (Alabama, Hawaii, New Jersey, and New York) allow metric-only labeling on retail consumer packages of products regulated solely by the states.  While U.S. and EU policies differ, producers now have considerable flexibility to adapt product labeling to consumer needs and preferences. New EU Policy in 2010--Metric-only Labels On Jan. 1, 2010, EU legislation (80/181/EEC) will require manufacturers to label all products marketed in the European Union, with few exceptions, exclusively in metric units.  Dual-unit measurements will no longer be permitted on product labels, brochures and advertisements, including those on the Internet.   The new policy will end a longstanding practice in the trade community of allowing manufacturers flexibility on labeling products. Effects on Producers and Consumers Under the EU metric-only requirement, many U.S. manufacturers would have to label separately and maintain separate inventory and warehousing for products marketed in the United States and European Union.  Separate metric-only product brochures, catalogues, and marketing websites on the Internet would also be necessary.  European manufacturers would face a similar problem for products requiring dual-unit labeling in the United States because of either legal mandates (e.g., under the FPLA) or consumer preference.  These additional costs in two major consumer markets adversely affect companies’ global competitiveness and result in higher prices for American and European consumers with no accompanying value added. Impact on Transatlantic Trade and Small Businesses A survey done in 1999 by the 82 companies and associations of the Transatlantic Labeling Alliance projected that the metric-only labeling Directive could adversely affect U.S.-EU trade of more than $118 billion in consumer goods and $143 billion in capital goods annually. Compliance costs were estimated in the hundreds of millions of dollars/ euros.  Some small and medium-size enterprises (SMEs) could be forced out of the export market altogether because of the costs.   Our Policy Goal: Change the EU “Metric-Only” Requirement to “Metric-plus” Allowing the options of either metric-only or dual-unit labeling serves the interests of producers and consumers.  Labels can be adapted to consumers’ needs and preferences, and production and marketing costs can be reduced to help keep prices down.   The EU should permanently change 80/181/EEC so that producers have the flexibility to use either metric-only or dual units on product labels depending on end-user needs. Similarly, the U.S. should continue to make progress at both the State and Federal level to approve “metric-only” as an option at all levels of commerce, including through an amendment to the Fair Packaging and Labeling Act that will allow producers of federally regulated  products the option to label packages only in metric units.