What does Brexit mean for the plastics supply chain?
It was definitely meant to happen on the 29th March, it was really definitely meant to happen on the 12th April, it was absolutely really definitely meant to happen on the 31st October, and today it finally happens.
There’ll be no Big Ben ringing, because it’s broken, no firework displays at Westminster, because they’re banned, but at 11pm tonight, the United Kingdom will leave the European Union.
In Mark Francois’ mind, we’d have left with him flying a Spitfire over the White Cliffs of Dover, the flight controls in one hand, a pint of bitter in the other, with his big purple face illuminating the way to a better future.
However, thanks to the Brexit Party, the EU got to see us leave with all the grace of Ann Widdicombe being propelled off a ledge in one of those hoists that old people use to get into swimming pools.
Anyway, as has quite extensively been covered, Brexit has posed a major issue to those involved with supply chains, both within and outside of the plastics industry, and at the moment it’s just one of a number of problems that the international supply is dealing with.
Marco Forgione, Director General for the Institute of Export and International Trade, said: “Brexit is just the start. Businesses must improve their compliance processes or risk supply chain disruption. Brexit will change the rules of trade for UK businesses trading into Europe, but it forms part of a much larger picture.”
“Trade regulation around the world is constantly changing. Businesses need to manage risk, know all their global compliance requirements, and constantly adapt to changes in the regulatory and geopolitical landscape.”
“Increasingly complicated supply chains can be disrupted at any moment and businesses need to know how to manage this risk. Businesses need to have the export knowhow needed to divert trade as and when logjams and crises hit, ensuring they can trade with new markets compliantly and profitably.”
“Failure to do so will risk delays, reputational damage, fines, and potentially the loss of business.”
“Currently, all carriers shipping goods into China are facing significant delays due to Coronavirus, and exporters are being advised to hold off shipping further goods there. We’ve also recently been warned about delays to shipments to Australia and New Zealand due to the devastating bushfires.”
“New ‘Green Deals’, technological advancement in AI and blockchain, and trade wars are also among the innumerable issues which affect international trade regulation and policy. Risk managers need to stay on top of all these factors, monitoring business’ ever-changing compliance requirements and adapting their supply chains when needed.”
“And of course, Brexit will have an impact. For example, only five per cent of the 10,500 trucks going through the port of Dover need to complete Customs declarations and clearance at present.”
“As the transition period concludes, this percentage will dramatically increase. This will undoubtedly affect our businesses and supply chains, however well-managed the change will be.”
“To conclude, as international trade policy and international regulations change at an accelerating speed, businesses need to manage the risks this entails, ensuring they get the training they need and have the processes in place to adapt, comply, and profit.”