Companies involved with toll processing will no doubt be closely watching developments in parliament as the deadline for leaving the EU draws ever closer.
With the government seemingly no closer to getting its deal approved, and the possibility of a no-deal Brexit or an extension to Article 50 looking more likely, there are some concerns about what will happen to the tariff protection for the UK’s chemicals sector.
ICIS recently pointed out that should the country leave the EU with no deal in place on 29 March, the chemicals industry could suffer.
The government recently announced that trade tariffs on chemicals and polymers would drop to an average of 0.1 per cent for EU nations in the event of a no-deal scenario. However, under World Trade Organisation (WTO) Most Favoured Nation rules, the UK would also have to lower its tariffs to these levels for all other WTO members around the world.
According to the news provider, UK chemicals producers are currently protected by tariffs of up to 6.5 per cent where no trade deal is in place.
Paul Hodges, chairman of consultancy Ready for Brexit, commented: “The zero per cent global tariff will risk the viability of a number of companies because they won’t be able to compete in the way they were by being protected in the past.”
Although many in the chemicals industry are hoping to avoid a no-deal Brexit, they are still making preparations should the worst happen.
Last month, the Guardian revealed that dozens of UK companies, including those in the chemicals industry, have applied to use EU regulators to help keep their businesses running smoothly if the UK crashes out of the EU with no deal in place.