OAKLAND — Destined for American kitchens, planks of birch and poplar plywood are stacked to the ceiling of a cavernous port warehouse. The wood, which arrived in California via a cargo ship, carries two labels: One proclaims "Made in China," while the other warns that it contains formaldehyde, a cancer-causing chemical. Because formaldehyde wafts off the glues in this plywood, it is illegal to sell in many countries — even the one where it originated, China. But in the United States this wood is legal, and it is routinely crafted into cabinets and furniture.
As the European Union and other nations have tightened their environmental standards, mostly in the last two years, manufacturers — here and around the world — are selling goods to American consumers that fail to meet other nations' stringent laws for toxic chemicals. Wood, toys, electronics, pesticides and cosmetics are among U.S. products that contain substances that are banned or restricted elsewhere, particularly in Europe and Japan, because they may raise the risk of cancer, alter hormones or cause reproductive or neurological damage.
Michael Wilson, a professor at UC Berkeley's Center for Occupational and Environmental Health, said the United States is becoming a "dumping ground" for consumer goods that are unwanted and illegal in much of the world. Wilson warned earlier this year in a report commissioned by the California Legislature that "the United States has fallen behind globally in the move toward cleaner technologies." The European Union, driven by consumers' concerns, has banned or heavily restricted hundreds of toxic substances in recent years, invoking its "precautionary principle," which is codified into law and prescribes that protective steps should be taken when there is scientific evidence of risks to public health or the environment.
Meanwhile, the Environmental Protection Agency and other federal agencies have relied on voluntary steps from industries rather than regulations, saying the threats posed by low levels of chemicals are too uncertain to eliminate products valuable to consumers or businesses. In the absence of U.S. regulations, some international corporations, including Hewlett-Packard, Dell, Mattel, Revlon and Orly International, have declared that all their products, no matter where they are made or sold, will comply with EU standards, the most stringent chemical laws in the world.
EDIT
http://www.latimes.com/news/science/environment/la-me-dumping8oct08,1,2869014.story?coll=la-news-environment