EU chemicals bodies call for UK to stay in Reach after Brexit talks stall

LONDON (ICIS)–EU chemicals trade group Cefic and other chemicals industry bodies have made the most public call yet for the UK to remain within the Reach chemicals regulatory system post-Brexit in a series of text and train advertisements across Brussels and the European financial press this week.

Coming after UK Brexit secretary Dominic Raab returned early from a meeting with EU policymakers as talks stalled yet again over the issue of an Irish border, Cefic warned on the disruption that no deal on the country’s exit from the 28-country union would bring.

The heads of Cefic, UK body the CIA, environmental charity CHEMTrust and non-governmental organisation the European Environmental Bureau (EEB) all called in an open letter for the European Commission – the EU’s executive body – to allow UK-based firms to remain under Reach post-Brexit.

Pushing the UK outside of Reach – the default current model for Brexit – would force companies on both sides of the channel to re-register to continue cross-border trade, duplicating work already done and weakening competitiveness, according to the organisations.

“This would not only weaken the international competitiveness of both UK- and EU-based chemical companies but, more importantly, also risk divergence of health, safety and environmental levels of protection,” the letter said.

The onus is also on the UK to accept the pre-conditions set out by the EU for a deal to be reached, the signatories added.

The EU summit on 17 October is seen as crucial for UK Prime Minister Theresa May, who will address assembled its European Council peers before departing to allow the remaining 27 EU countries to discuss how to take negotiations forward.

The breakdown of talks over the question of a hard border between the UK’s  Northern Ireland and the EU member the Republic of Ireland has left the possibility of the UK quitting the union without a trade deal more likely than ever before, according to European Council President Donald Tusk.

“As things stand today, it has proven to be more complicated than some may have expected,” he said in an invitation letter to European Council members.

“We should nevertheless remain hopeful and determined, as there is good will to continue these talks on both sides. But at the same time, responsible as we are, we must prepare the EU for a no-deal scenario, which is more likely than ever before.”

The breakdown of talks was over an EU proposal for a ‘backstop’, intended to ensure that the Irish border does not harden post-Brexit, meaning that Northern Ireland would remain subject to separate customs arrangements.

The concept has been agreed on in principle by both sides, but UK negotiators have balked at the idea of further assurances being required by the EU that could see a hard border along the Irish Sea, leaving Northern Ireland aligned with the EU.

The UK has proposed instead a “temporary” customs arrangement that would see the whole country adhere to EU tariff policies from 2021 – the final departure date for the UK if a transition arrangement is agreed – if no free trade deal has been signed before then.

UK markets continued to fall on Monday following a massive correction across global bourses at the end of the previous week, as Brexit fears built on geopolitical jitters to drive down the FTSE 100 index.

May scheduled a special address in the UK‘s House of Commons to assuage fears over the breakdown of talks in Brussels.

“I continue to believe that a negotiated deal is the preferred outcome,” she said.

“All remaining points of disagreement are on how we manage a scenario which both sides agree cannot come to pass, and should only be temporary.”

The sticking point in talks is that the European Commission wanted a ‘backstop to the backstop’ – where a border is placed between Northern Ireland and the UK – as the only border solution under discussion.

“We have been clear that we cannot agree to anything that threatens the integrity of the UK,” May said.

The UK has no objection to a backstop solution, she added, only that there be no stipulation that it could be a permanent option, meaning that the UK could remain subject to EU customs laws until a free trade deal is agreed.

Despite her emphasis on the temporary nature of the measures, May declined to give a specific end date for an Irish backstop.

Pictured: An advert sponsored by Cefic, CIA, EEB and CHEMTrust in Brussels’ metro
Source: CIA