Covered Covered Spring 2018 | Page 7

PUBLIC AFFAIRS UPDATE Brexit deal signed, in time for Christmas The last few months have probably seen the most developments in the Brexit discussions since that historic day 18 months ago. We finally have it - a deal. Well, one of many deals, but a deal many thought wouldn’t be made following tension in December surrounding the Irish border. Just a few weeks before Christmas, Prime Minister Theresa May and Secretary of State for Brexit David Davis came to an agreement with the EU’s Chief Negotiator Michel Barnier on the divorce settlement, rights of EU and UK citizens and key is that there will be no hard border on the Isle of Ireland. The next phase of negotiations is key for the BCF and our members as government will now discuss trade. What hasn’t been agreed? The next phase of talks will now focus on trade. The BCF has been working closely with BEIS, Defra, the Department for International Trade and the Department for Exiting the EU to provide case studies on different trade and regulatory framework scenarios. Something else which raises questions is the remit of the European Court of Justice (ECJ). The ECJ oversees all EU regulations, so if we were to stay within REACH, we would need to have ECJ jurisdiction in the UK, or to come to a deal where the EU recognises the UK equivalent regulations. 2018 Reshuffle - an omnishambles? What has been agreed? The UK and the EU have agreed three core points, which were published in a 15 page document: • • • No hard border Fair settlement to the British taxpayer No customs barrier in the Irish Sea This is all good news in theory, although we don’t know what any of this means for the chemical regulatory framework. The 15-page document also states that: "The UK will maintain full alignment with those rules of the Internal Market and the Customs Union which, now or in the future, support North-South cooperation, the all island economy and the protection of the 1998 Agreement." The statement of “full alignment” will undoubtedly lead to heated discussions within the Conservative Party, but the document implies that if there is no trade deal, then the UK will default to EU regulations. This could mean that if no agreement on trade is reached, the UK coatings industry could stay in the EU regulatory framework. Covered Spring 2018 The Prime Minister has since then undertaken a major reshuffle of her Cabinet and junior Ministers. Importantly for the BCF, the Defra Secretary of State Michael Gove MP and Waste Minister Dr Therese Coffey MP have remained in place, along with the top Minister at BEIS, Greg Clark MP. However, the reshuffle has been met with controversy. Health Minister Jeremy Hunt MP refused to accept a new position, and former Education Secretary Justine Greening MP quit after turning down the role of Work and Pensions Secretary. This has led to some questioning of the Prime Minister’s authority ahead of the next stage of Brexit talks, where she will vitally have to negotiate on trade. Where are we now? The BCF will keep on fighting for the coatings industry. We are consulting BCF members on trade, customs, and various other issues of importance to the industry. We have a good line of communication with government and in the industry, so do see this agreement as progress. This means we can now focus on assisting government as they negotiate trade deals with the EU and beyond. 7