BRITISH COATINGS FEDERATION
British Coatings Federation welcomes FTA but calls for more significant changes to UK REACH
The British Coatings Federation has welcomed the news of a Free Trade Agreement ( FTA ) between the UK and EU . Despite the lateness of the decision , an FTA will mean , among other things , that BCF members will be able to benefit from tariff-free trade with the EU in future . This at least will ensure the coatings and printing inks sectors across Europe will not now be hit by new tariff costs of an estimated £ 100 million .
However , while there is talk of a Chemicals Annexe being included in the deal , it is not yet clear this will include the key data-sharing clauses the UK wanted . If this has not been agreed today , we hope that data-sharing might still be able to be negotiated as an ‘ add-on ’ at some point in 2021 .
The 1st January 2021 sees the introduction of the UK ’ s new independent chemicals regulations . UK REACH is a direct copy of the original , EU REACH , a piece of legislation widely regarded as being one of the most – if not the most – burdensome in the world . If data-sharing has not been agreed as part of the FTA , UK REACH will now require the registration with full data dossiers of all chemical substances being used in the country to be put into a new database . This process is going to cost the chemicals industry an estimated £ 1 billion plus , a figure not disputed by the UK Government . It is also likely to mean some substances will not be registered in the new UK database at all for reasons of cost , leaving many UK manufacturers in a position where they have to make do without , change their formulations , or take on the registration costs themselves .
In addition , UK-based companies wanting to export to the EU will not only have to comply with UK REACH but continue to adhere to EU REACH rules too . This will become more complicated if the UK and EU chemicals regimes start to diverge in future .
Commenting on the deal , Tow Bowtell , CEO of the BCF , said :
“ We welcome the fact a Free Trade Agreement has been concluded . Businesses are going to be hit significantly by Brexit and at least this FTA means some additional costs , such as tariffs , are now going to be avoided .
“ However , the FTA agreed appears extremely ‘ thin ’ and basic . The reality is this is a ‘ hard ’ Brexit , with significant extra costs and burdens placed on UK industry as a result . BCF members and businesses across the country will still have to deal with new customs and borders controls , as well as delays to goods and raw materials caused by those additional procedures . This will make UK companies less competitive , having to spend more time and money dealing with bureaucracy that has not been there for decades .
“ In particular , we have serious concerns about the way UK REACH will duplicate the onerous EU REACH , despite the UK chemicals market
Tom Bowtell , CEO being only 1 / 10th the size of the EU . It seems as though the FTA negotiations failed to secure a data-sharing agreement on chemicals . If that is indeed the case , we either need to see further negotiations in 2021 to try and reach that agreement as an ‘ add-on ’ or Defra will need to urgently review how UK REACH is going to work . Proceeding as currently planned will cost businesses – including downstream users like those in the coatings , printing inks and wallcoverings sectors – over a billion pounds with absolutely zero added benefits . We will continue , as a matter of priority , to make this case for change into 2021 .”
British Coatings Federation Ltd
Westwood Way Westwood Business Park Coventry , CV4 8HS Visit : www . coatings . org . uk Email : info @ bcf . co . uk Registered in England 745398
6 JANUARY 2021 twitter : @ surfaceworldmag