The latest survey of British Coatings Federation (BCF) members reveals UK coatings manufacturers are increasingly concerned about the effects of the new UK chemical regulations. Almost 80% of respondents believe UK REACH will impact negatively on their businesses, with the fear that there will be a significant reduction in the portfolio of available chemical substances in the UK compared to the EU, and 67% of respondents fear higher costs in the future where suppliers pass on the costs of complying with UK REACH. Worryingly, 19% of respondents are already reporting that EU suppliers no longer want to export to the UK.

The survey also reports challenges for the sector’s UK exporters – 60% fear that having to abide by EU REACH and CLP rules as a ‘third country’ will impact on their business competitiveness, and more than four in ten respondents (43%) reported increased operating costs of more than 5%, with one in ten (9%) citing a figure of more than 10%. These additional cost estimates have increased considerably since the last BCF Brexit Impact Survey at the end of January. On top of these non-tariff costs, the majority of BCF members are still encountering delays to shipping between UK and the EU, and between GB and NI. Overall, after experiencing nearly six months of the new UK-EU trading relationship, half of respondents are still concerned they risk losing EU export customers, and more than a third now worry about their competitiveness compared to EU counterparts as a result of the Trade and Co-operation Agreement (TCA) trading terms. 70% of coatings companies believe their trade with the EU, the sector’s main export market, will reduce, and only 20% see opportunities with the rest of the world from new trade deals.

Tom Bowtell, CEO of the British Coatings Federation, said: “Our latest survey results show that the added complexity of the new UK chemicals regulations is starting to bite. We have consistently called for UK REACH legislation to be amended to avoid the significant additional costs it will bring to business, as well as its potentially devastating impact on raw material availability to our manufacturers in the UK. Failure to amend UK REACH will lead to our coatings members – and other businesses in similar sectors – seeing unsustainable added complexities and extra costs. Exports of chemical-based products from the UK will be severely threatened by UK REACH, as will foreign direct investment into UK factories, as many companies choose to reduce their manufacturing footprint in the UK and relocate to the EU. Overall, the UK will become a less competitive country to do business in.”

“We welcome the fact that Defra has been engaging with industry on the future of UK REACH over the past few months and hope that, even at this late stage, UK REACH can be amended so that it is less damaging to UK businesses.”

Resource:
https://polymerspaintcolourjournal.com/news/uk-reach-major-threat-to-uk-manufacturing-says-coatings-industry-survey?utm_source=Adestra&utm_medium=email&CID=003D00000242tSZIAY&utm_campaign=June%202021%20Newsletter%202%20%20Subscribers&utm_content=C3683635&CNAME=Onward%20Chemicals%20Pvt.%20Ltd

More News
What do China’s data export regulations mean for its trade competitiveness?
News · 13/12/2022

In the second half of 2022, China unveiled the details of its data export regulations, providing further explanations to its existing laws and regulations on data.

READ MORE
Energy Crisis: The EU Chemical Industry Is Reaching Breaking Point
News · 11/11/2022

The current energy crisis has reached an unsustainable level for the European chemical industry. For the first time ever, the EU imports more chemicals than it exports, both in volume and value, resulting in a trade deficit of € 5.6 bn for the first half of 2022.

READ MORE
European Union proposes to add two new hazard classes to EU CLP regulation for endocrine disruptors (EDCs)
News · 17/10/2022

Endocrine Disrupting Chemicals (also referred to as hormone disruptors or EDCs) are synthetic chemicals that are not produced by the human body and that disrupt the normal functioning of humans and animals.

READ MORE
The Shipping Industry in a downward spiral
News · 03/10/2022

The shipping industry is now returning to normality and is in a downward spiral. The cost of shipping goods from China has slumped to the lowest level in more than two years as the world economy stumbles, dimming prospects for container carriers that turned in record profits during the pandemic.

READ MORE
Global Freight Situation
News · 08/09/2022

No precipitous plunge in container shipping rates, just ‘orderly’ decline.

READ MORE
3 Key Insights into the Global Food and Beverage Market
News · 02/08/2022

The global food and beverage market size is expected to grow from $5.8 trillion in 2021 to $6.4 trillion in 2022 at a growth rate of 9.7%. The food and beverage market size is expected to grow to $8.9 trillion in 2026 at a compound annual growth rate of 8.7%.

READ MORE
NEW DRUGS (AMENDMENT) RULES,2022 MANDATES QR CODES FOR ACTIVE PHARMACEUTICAL INGREDIENTS
News · 01/07/2022

The amendment makes QR codes mandatory on every active pharmaceutical ingredient. The Amendment Rules will come into force from January 01, 2023.

READ MORE
European Green Deal
News · 01/07/2022

On June 22, 2022, the Commission adopted pioneering proposals to restore damaged ecosystems and bring nature back across Europe, from agricultural land and seas, to forests and urban environments. The Commission also proposes to reduce the use and risk of chemical pesticides by 50% by 2030.

READ MORE
Neoadjuvant Dostarlimab is a promising treatment option in locally advanced dMMR rectal cancer
News · 01/07/2022

According to New York Times, in a small clinical trial, 18 patients took a drug called Dostarlimab for around six months, and in the end, every one of them saw their tumours disappear.

READ MORE