The Covid-19 pandemic has highlighted some of the weaknesses in the UK’s supply chain where it is overly reliant on foreign imports.
According to the Financial Times, the British government is currently drawing up plans to make the country less reliant on imports from China and is exploring options for bringing the manufacture of certain goods and products back to the UK.
One person familiar with the talks told the publication that, while reshoring everything “doesn’t fit with our ambition to be a champion of free trade”, there have been repeated discussions about how to reduce the UK’s reliance on Chinese imports.
The lack of certain chemicals, medical supplies, PPE equipment and vaccines has been thrown into sharp relief by the Covid-19 pandemic and this is forcing ministers to change their approach, the newspaper suggested.
It also revealed that the UK’s chemicals industry is in talks with the government about reshoring some generic manufacture for active pharmaceutical ingredients, for instance.
Another area that the government is looking at is the supply chain for “critical supplies in the green economy”, such as lithium which is used in batteries.
Meanwhile, ICIS recently reported that the UK will not be seeking associate membership of the European Chemicals Agency (ECHA) once the transition period for Brexit ends next year and the country is no longer part of the EU customs union.
It cited a letter from Rebecca Pow, parliamentary under secretary of state at the UK’s Department of Environment, Food and Rural Affairs, in which she said that while it will take “some adjustment” for the country’s chemical sector, the government believes “the benefits of having control of our own laws outweigh the costs”.
Looking for assistance with toll processing? Get in touch with us today.