Sector News

Germany's VCI urges chems to prepare for ‘hard Brexit'

August 29, 2018
Chemical Value Chain

German chemical industry trade group VCI is calling on chemical firms to prepare for a “hard Brexit”, it said on Friday.

The Frankfurt-based group, which represents about 1,700 firms, launched the call as the EU and the UK have not achieved “tangible results” about the conditions of the UK’s exit from the EU, despite months of negotiations, it said.

“The likelihood that negotiations will fail is, unfortunately, increasing every day,” said VCI director general Utz Tillmann.

“It’s now high time for companies to prepare for a Brexit without an EU-UK exit deal”, he said.

A Brexit without a deal, or at least without an agreed transition period for the import and export of chemicals, will likely result in “chaos” in the exchange of goods between the EU and the UK, with trade possibly coming to a complete standstill, Tillmann said.

He added that the UK government’s “unilateral technical guidance” to affected firms on how to cope would not resolve the trade problems from a no-deal Brexit.

Tillmann went on to urge EU and UK negotiators to spare no effort to come to an agreement by October.

“For the chemical-pharmaceutical industry and its customer industries, it is extremely important to integrate the UK into the [Helsinki-based] European Chemicals Authority (ECHA),” he said.

Such integration should be included in guidelines on the future EU-UK relationship, he added.

Meanwhile, UK Chancellor of the Exchequer Philip Hammond warned that the UK chemicals industry stands to be among the worst hit in the event of a breakaway from the EU that reverts to World Trade Organization (WTO) rules.

The UK government has started to issue guidance documents informing players in different sectors what to expect in the event of no terms being agreed with the European Commission, and what steps they can take to prepare.

Guidance for the chemicals sector is expected to be issued in early September, according to UK’s chemical trade group the Chemical Industries Association (CIA).

By Stefan Baumgarten

Source: ICIS News

comments closed

Related News

October 1, 2023

INEOS announces the acquisition of the Eastman Texas City Site for ~$500 million

Chemical Value Chain

The deal includes the 600kt Acetic Acid plant and all associated third party activities on the site. Eastman and INEOS have also entered into a Memorandum of Understanding to explore options for a long-term supply agreement for vinyl acetate monomer.

October 1, 2023

Executive Vice President Lucrèce Foufopoulos-De Ridder to leave Borealis

Chemical Value Chain

The Supervisory Board of Borealis has accepted the decision of Lucrèce Foufopoulos-De Ridder, EVP Polyolefins, Circular Economy Solutions and Innovation & Technology to step down from her executive position at Borealis, and the Board of Borouge Pte effective 31 December 2023 to pursue other career opportunities.

October 1, 2023

Sidel unveils new StarLiteR rPET solution

Chemical Value Chain

Sidel has launched a new 100% rPET bottle base, StarLiteR, aiming to help carbonated soft drink (CSD) packaging producers embrace material circularity. StarLiteR allows CDS producers to switch to rPET bottle production easily and efficiently, while significantly reducing the impact on product quality or packaging integrity.

How can we help you?

We're easy to reach