The Chemicals Industries Association has issued a call to the new prime minister to make sure that a deal for Brexit is agreed upon with the European Union over the next few months, a move that it believes will strengthen the chances of growth and prosperity.
“We urge the new prime minister and his government – along with EU27 governments – to work constructively and urgently to avoid a no deal outcome by the end of October,” the organisation said.
“Frictionless tariff free trade, regulatory consistency and access to skilled people remain the chemical industry’s priorities right across Europe and delivering those outcomes will help remove the damaging climate of uncertainty and inject some much needed business confidence in terms of trade and investment,” it was further observed.
Every year, the chemical and pharmaceutical industry adds £18 billion to the UK economy from a total turnover of £50 billion. It also contributes to the economy by serving at the head of many supply chains within the manufacturing sector, as well as its employment of a highly skilled workforce.
Taken together, the chemical and pharmaceutical sector is the biggest exporter of manufactured goods, with annual exports of more than £50 billion. Some 63 per cent of companies in the sector export what they manufacture, the highest proportion of any goods manufacturing industry in the UK.
A new report from the Confederation of British Industry (CBI) has just suggested that neither the UK nor the EU are ready for a no-deal Brexit scenario on October 31st. It was also highlighted how the EU is lagging behind the UK in looking to prevent the worst effects of leaving without a deal in place.
Although billions have already been spent by businesses on contingency planning for this particular scenario, they are still being hindered by timelines, unclear advice, cost and complexity. Bigger businesses have robust contingency plans in place, but smaller companies are less well prepared.
Deputy director-general of the CBI Josh Hardie explained that while businesses are now “desperate” to draw a line under Brexit and move on, and while there must be a way to negotiate and agree on a deal, everyone must now prepare to leave the EU without one in place.
Outdated technical notices need to be reviewed and a communications campaign launched for every company in the country, testing all government IT systems and plans.
Mr Hardie also called on the EU to commit to matching our “sensible mitigations”, adding that failing to do this will hurt both economies. “It’s not just about queues at ports. The invisible impact of severing service trades overnight would harm firms across the country,” he went on to say.
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