Following a speech made by Brexit Secretary Dominic Raab, the UK Government has today, 23 August 2018, started publishing a series of technical notices that offer guidance for business on what will happen in a ‘no-deal’ Brexit.
Commenting on the release, Steve Elliott, chief executive of the Chemical Industries Association (CIA) said: “Whilst we continue to urge both parties to secure a future deal that minimises disruption for all European chemical businesses, it is reassuring to see the UK government addressing the consequences of a ‘no-deal’ Brexit and the actions that our sector might need to consider. We welcome in particular, the overall intent to mitigate against the harshest possible outcomes and, should it come to it, we would encourage the EU27 to respond in a similar way.
Although a number of the technical notices published today are relevant to chemical businesses – for example, those addressing customs and tariffs; trade remedies, Horizon 2020 and VAT - we anticipate technical notices more specific to our sector to emerge in early September, such as chemicals regulation, environmental standards, energy and export control regulation. All of these will help inform work that CIA is currently conducting on scenarios and contingencies around a number of options, including the impact of a ‘no deal’.
We will of course continue to play our part in engaging with EU27 chemical businesses; national governments and the European institutions to secure a Withdrawal Agreement, transition period and new relationship - hopefully rendering any “no deal” scenario redundant.”
For further information, please contact Simon Marsh on 07951 389197 or [email protected].
- The chemical and pharmaceutical industry adds £18 billion of value to the UK economy every year from total annual turnover of £50 billion.
- In addition to gross value added, the sector also contributes to the UK economy in its position at the head of many supply chains within manufacturing and its employment of a well remunerated, high-skilled workforce. We support 500,000 jobs both directly and indirectly Chemical manufacturing adds £9 billion in gross value added annually and pharmaceutical manufacturing £9 billion.
- The wider chemical and pharmaceutical sector (manufacturing plus distribution) is the largest exporter of manufactured goods with annual exports of over £50 billion. The export of motor vehicle, trailers and semi-trailers is the sector with next highest exports of £35 billion. Aerospace is £32 billion.
- 63% of companies in the sector export what they make to the world, the highest proportion of any goods manufacturing sector in the UK economy. 60% of our exports go to the European Union and 75% of our imports and raw materials come from the European Union.
- The sector’s level of business investment is £4.3 billion, compared to the automotive’s £2.7 billion and aerospace’s £2.1 billion, while the expenditure on research & development is £5 billion (automotive £2.7 billion and aerospace £2.1 billion).
- The products and technologies of the Chemical industry are essential parts of medicines, food & drink, telecommunications, energy-saving, I.T, clothing and much more.
- For every tonne of Greenhouse Gas (GHG) emitted, our products and technologies enable over 2 tonnes of GHG emissions savings.