“Making Brexit work for the Chemical Industry” has been co-published by Chemical Industries Association (CIA) and strategic legal partner, Squire Patton Boggs, and is a guide about Brexit and the future.
The report details a number of key priorities for the industry, including:
Frictionless trade with the EU
Undisrupted UK/EU supply chains
Development of new free-trade agreements
Access to secure and cost effective energy
Access to highly skilled individuals
Reflecting on the guide’s launch, CIA Chief Executive Steve Elliott said: “with £50 billion of exports, the chemicals sector is the UK’s largest manufacturing exporter. With 60% of these exports going to the EU and 75% of the UK’s chemical imports coming from the EU, the terms of the UK’s exit are critical for the future success of the sector. This new guide which we hope will be of interest to government and other stakeholders makes clear the outcomes needed from Brexit negotiations in order to secure the long term success of our industry”.
Darren Warburton, lead partner of the Chemicals Industry Group in Europe at Squire Patton Boggs, commented: “The importance of the chemicals industry to the UK economy and the extent to which it is integrated into European markets, whether through trade, supply chains, regulation, or R&D, means that the UK government must deliver a Brexit that minimizes disruption and ensures the best possible solutions for the sector. There has to be clarity as early as possible over what the trading relationship with the EU27 will be, with the emphasis on tariff-free access to the single market and no customs barriers. In regulatory terms, we need continuity and consistency, and REACH in particular has to be a priority. And to continue to grow and compete globally, the sector must have access to skilled labour.”
“Making Brexit work for the Chemical Industry” is available to view here
For further information please call Simon Marsh on 07951 389197
• The chemical and pharmaceutical industry adds £18 billion of value to the UK economy every year from total annual turnover of £50 billion. This represents around 11% of the value added by the whole of UK manufacturing.
• 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. 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 close to £50 billion. The export of motor vehicle, trailers and semi-trailers is the sector with next highest exports of £35 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.
• Our latest quarterly survey was conducted in January 2018 and asked about performance in Q4 2017 compared with Q3 2017 and expectations for 2018. 31 companies responded.