There is still much speculation about what will happen when the UK officially leaves the EU next year, with the government and many in businesses around the country preparing for a ‘no deal’ Brexit.
For companies focusing on toll processing and other elements of the chemicals industry, recent comments made by chancellor Philip Hammond will be a concern.
In a letter at the end of August, he stated that “chemicals, food and drink, clothing, manufacturing, cars and retail were estimated to be the sectors most affected negatively in the long run” should the UK leave the EU without a deal, The Chemical Engineer reported.
However, both Mr Hammond and Brexit secretary Dominic Raab have stated that they believe a no deal outcome is unlikely.
CEO of the Chemical Industry Association (CIA) Steve Elliott said that he’s encouraged that the government is acknowledging the possibility of a no deal scenario, but stressed that the CIA will work closely with the government and EU27 to “secure a Withdrawal Agreement, transition period and new relationship – hopefully rendering any ‘no deal’ scenario redundant”.
This isn’t the first time that concerns have been voiced about what will happen within the UK’s chemical sector when we leave the EU.
Environmental coalition Greener recently warned about the possibility of the country becoming a dumping ground for chemicals that have been banned in Europe following a Brexit without a deal in place.
The main reason for this is that the UK may be forced to leave the EU’s database, which covers some 21,000 chemicals and took a decade to compile. Without access to this, the UK could end up with products containing harmful chemicals on the market.