British Coatings Federation Reports Negative Impact of Brexit on Coatings Industry According to the latest report by the British Coatings Federation, Brexit has had a negative impact on the coatings sector’s trade with the EU.
ccording to a new survey of British Coatings Federation – which
additional trading costs due to customs paperwork (59%); the impact of
set out to measure its member companies’ experience of the
future divergence of UK REACH from EU REACH (59%); and the impact UK
UK-EU Trade and Co-operation Agreement (TCA) – while a few
REACH could have on raw material prices in the UK (61%).
firms managed to retain or increase exports, the majority of survey
“The Government needs to work harder with businesses to help make
respondents saw exports to the EU fall over the past 15 months.
exporting to and from the EU easier, ideally looking to enhance the terms
Members also reported they had experienced a significant increase in
of the TCA. Instead, it looks as though things are moving in the opposite
operating costs due to the various new rules, procedures, and knock-on
direction with threats to trigger Article 16 of the Northern Ireland
effects of the UK-EU TCA.
Protocol which could collapse the whole trade agreement. That would be
Conversely, there was, as yet, little sign of compensating growth in
a disaster for industry, especially given we are in the middle of the worst
trade elsewhere in the world due to new FTAs. Moreover, there is still
global raw material and supply chain crisis seen for a generation”, says
substantial concern about the future UK chemicals regulation regime,
Tom Bowtell, CEO of the British Coatings Federation.
particularly UK REACH, and how this will impact on future business
“Looking beyond the EU, we need to see more support for UK businesses
growing their exports to the rest of the world. At the moment, despite new FTAs being signed and talked about there seem to be few
opportunities developing for our sector. BCF will be playing its part by
Nearly one in six members (59%) reported increased operating costs
working with the Department for International Trade, most imminently
due to Brexit of more than 4%. Nearly a third (32%) said it had added
through a joint export seminar in Manchester next month”.
more than 6%. One in ten had experienced additional costs of more
“Finally, we must not take our eye off the regulatory ball. Our survey
than 15%. Nearly four in ten (39.5%) reported that exports to the EU
showed problems and concerns about UK REACH have slightly
had decreased, with a plurality losing between 6-10% of exports over
diminished since this time last year. This is probably because Defra
the last year or so, although some
has said they are looking at a new
model that should hopefully be
Logistics remains the biggest issue
less burdensome on industry.
for members: availability of hauliers
However, those concerns about
(69%), delays to shipments of raw
REACH are still substantial and loom
materials coming into the UK (67%),
large over our members’ future
and cost of shipping (64%) are the
business competitiveness. We need
most commonly cited ongoing
to see Defra come up with a new
problems due to Brexit.
approach for UK REACH as quickly
Nearly a quarter of members
as possible to provide businesses
(23.1%) reported that EU suppliers
with the certainty they need to plan,
no longer wanted to export to the
and the ability to access a full range
UK, up from 19% last year.
of necessary substances to aid
Looking ahead, regulatory issues still
innovation in future”, he concludes.
loom large in terms of worries over For further information:
future business competitiveness. The top three concerns cited were:
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N. 75 - MAY/JUNE 2022 - international PAINT&COATING magazine