Brexit date passes inconclusively; leaves UK textile chemicals market in dark
Chemicals markets are in the dark about the United Kingdom’s future trading relationship with the European Union as the anticipated 29 March date for departure passes with another failed vote and no clarity on the path ahead. A third vote on Prime Minister Theresa May’s Brexit deal, which on this occasion covered the withdrawal agreement but not the country’s future relationship with the EU, was defeated by 344 votes to 286 in the House of Commons on Friday. It is now scheduled to leave on 12 April with or without a deal unless the government requests the European Commission to grant an extension, which will require May to set out a clear plan for future negotiations.
Today the MPs decide on the next round of the indicative voting process, after rejecting all eight possible options last week. The next phase of the process will see parliamentarians vote on a narrowed list of possible options, but even if one path does gain majority assent, there is insufficient time to negotiate and ratify another deal before time runs out, according to May.
UK chemicals industry bodies largely backed May’s deal on the basis that it allowed for continuity of trade with the EU, and prioritised finding a way to allow the UK to remain within the EU REACH regulation system. The Chemical Business Association head, Peter Newport, reiterated the need for a Brexit deal to allow smooth trade to continue across the British Channel and to avoid the institution of a UK REACH system, which could force players to go to the expense of re-registering their portfolios.
