The UK chemical toll processing industry was relieved by the EU—UK trade deal, but still has some concerns and questions, according to a report published on the Chemistryworld.com website. Steve Elliott, the chief executive of the Chemical Industries Association (CIA), said that failure to reach a deal would have cost the industry at least £1bn.
One of the main advantages of the deal is ‘confirmed mutual recognition’ which means that inspection and certification of good manufacturing practice (GMP) facilities by the UK regulatory authority will be recognised by the EU, and vice versa. This means the worst-case scenario for Brexit disruption has been avoided.
However, some concerns remain. Mutual recognition of safety and quality testing does not appear to have been included in the deal, which may mean duplicate tests will be carried out, wasting time and resources.
Another major sticking point is border crossings, which will present extra red tape and paperwork for the chemical manufacturing industry. UK trade association, The British Coatings Federation (BCF) reports that members have been stockpiling in preparation for the EU leaving date, to reduce pressure on logistics.
BCF Chief Executive, Tom Bowtell, said: ‘The first week seems to have passed relatively problem-free, however this seems to be because many shipments were delayed to avoid anticipated queues and other issues. We are likely to see more problems arise over the coming weeks, though, as cross-border traffic builds up again.’
He adds: ‘It is inevitable that this will lead to price rises where UK manufacturers seek to recover the additional costs of doing business. We do worry that EU exporters of coatings and printing inks will lose out to European competitors, who do not face the same barriers.’
Small companies are likely to be worst affected by the teething troubles. The report claims that some UK SMEs have even relocated to Ireland, France, and Germany to avoid the consequences of Brexit.
If you’re looking for toll processing services, then talk to our team today.