Chemicals Brexit group calls for business as usual, with extra subsidies after UK/ EU split

The Chemical Industries Association has published its position from its Brexit taskforce, with a guide for British chemicals success after the UK leaves the EU.

The CIA, representing the chemicals sector, wants the trade situation to remain much the same, with undisrupted UK/EU supply chains, regulatory consistency and freedom of skilled labour. However, added to its wishlist is more state aid help from the UK government to subsidise the industry as a protection against Chinese chemical products dumping.

Steve Elliott, CIA Chief Executive, said: “The chemicals sector is the UK’s largest manufacturing exporter, with £50 billion of exports. With 60 per cent of these exports going to the EU and 75 per cent 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 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, the group’s legal advisors, said: “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 research, means that the UK government must deliver a Brexit that minimises 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.”