With less than 20 days remaining, European businesses are calling for a no deal Brexit to be averted immediately to avoid major disruption of supply chains across all industries and to protect jobs.
The undersigned organizations reiterate that a no-deal Brexit will have disastrous consequences for businesses and citizens on both sides of the Channel.
EU and UK companies have benefited from over 40 years of economic integration and 25 years of the Single Market. As a result, value chains have become so closely intertwined that a no-deal Brexit will lead to chaos.
Delays at customs and disrupted supply of all goods, including foods and medicines, will affect communities and incur significant costs for businesses and governments alike. In many areas, businesses do not yet know the trading conditions they will be operating in and smaller companies are already experiencing cash flow problems in the face of this uncertainty. Jobs are at risk as businesses might have to close down or downsize, unable to deal with disruptions.
As a matter of urgency we call on both parties to secure the Withdrawal Agreement and transition period. This will give businesses time to adapt to the new reality and allow the EU and UK to prepare and agree on their future relationship.
- Association of European Chambers of Commerce and Industry (EUROCHAMBRES)
- Chemical Industries Association (CIA)
- European Aluminium
- European Automobile Manufacturers’ Association (ACEA)
- European Apparel and Textile Confederation (EURATEX)
- European Association of Metals (Eurometaux)
- European Chemical Industry Council (Cefic)
- European Forest Fibre and Paper Industry (CEPI)
- European Steel Association (EUROFER)
For further information, please contact CIA's Simon Marsh on 07951 389197 or [email protected]
About the UK chemical industry
- 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 automotive £2.7 billion and aerospace £2.1 billion, while the expenditure on research & development is £5.0 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.