PARLIAMENTARY AFFAIRS
ACA survey on Brexit
Impacts
Brexit survey - key findings:
•
After individual meetings with the
key government departments: BEIS,
Defra and DExEU, the BCF led a more
detailed Brexit impact survey on behalf
of the chemical industry supply chain in
February 2017. The survey was designed
to gather information for case studies
and data about industry’s relationship
with the EU and how this will change in
two years’ time.
•
•
•
•
Over 100 companies in the chemicals
supply chain responded to the survey,
revealing key concerns of the sector
toward the economic and regulatory
landscape post-Brexit.
38% of respondents spend over £100,000 a year complying with EU regulations,
representing an average of 15% of their annual profits
97% said EU trade was of importance to their business, and 70% of companies
say REACH and CLP are of high importance for their businesses to operate
61% said proximity of market and/or supply chain is important
71% said the impact of separate UK chemical regulatory requirements for
countries that trade with the EU would be negative, and 62% indicated concern
that costs of compliance will increase
Over 20% said they will move their businesses out of the UK if there
is no access to the single market or no access to REACH
Promoting the industry
amidst Brexit uncertainty
The BCF is well-connected with the
coatings supply chain and governmental
and industry bodies, and have been using
these connections to engage in debate
on ensuring a competitive future for
the UK coatings industry. The BCF is a
member of various groups such as the
Chemical Stakeholder Forum, REACH
Cross Sector Group, and the Chemical
Growth Partnership supply chains sub-
group, which are all in conversation with
government on Brexit.
These results will now be used to inform
some of the trade negotiations the
Government will be conducting since
Article 50 has now been triggered.
With the General Election set to take
place 8 th June, the survey results will be
reinforced to any newly elected MPs or
Government Ministers to help ensure
the best Brexit outcome for the sector.
Further, after a meeting with Barry
Gardiner, MP for Brent North, he tabled
several parliamentary questions about
the future of REACH post-Brexit. This
was an excellent way of raising the
profile of the chemicals industry and
some of the unique problems the sector
might face after Brexit. The BCF has also
submitted evidence to the Environmental
Audit Committee’s inquiry into the
future of REACH when the UK leaves
the EU.
Whilst there is undoubtedly uncertainty
for businesses over the coming years,
the BCF will continue to lobby and work
with government to make the most of
Brexit and ensure the coatings industry
prospers in a global environment.
Brexit risks and opportunities for the chemical industry supply chain
76% SAW RISKS
Tariff concerns
Loss of regulatory
equivalence
24% SAW OPPORTUNITIES
24%
40%
Customs
admins/delays
11%
New trade
deals
33%
Simplified
regulations
67%
Loss of raw
materials
Lack of
innovation
3%
Higher input
prices
7%
Loss of quality
8%
7%
* Source: ACA Brexit impact survey February 2017
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