Chemical Industry Leaders Attend US-EU Trade Summit

Leaders of the chemicals industry are travelling to London today for a summit chaired by Cabinet Minister Ken Clarke to discuss the proposed free trade agreement between the EU and the US.  

When the agreement, known as the Transatlantic Trade and Investment Partnership (TTIP), is finalised, the removal of export tariffs alone is expected to be worth at least £450 mn to the British chemicals industry. Getting rid of some of the differences between the American and European systems is expected to bring the total benefits to the economy to about £10bn a year.

There have already been reports of discussions among medical device industry representatives in Europe who have looked at ways that the US and the EU can harmonise their respective regulatory systems.  

The UK chemicals sector will reportedly also benefit from the recently-signed trade deal between the EU and Canada, worth around £1.3 bn a year to the UK economy. It is anticipated that all chemicals traded between the UK and Canada will be tariff free, greatly increasing the amount of exports.  

Ken Clarke said:  

“These Free Trade Deals are great news for the UK as a whole and for the thriving chemicals industry in particular.  Together they could amount to a very significant economic shot in the arm at a time when it is desperately needed.  

“The chemicals sector has a major part to play in the success of the UK economy, and these ambitious deals will help ensure it goes from strength to strength.  

“The deals also show the benefits to the UK of belonging to the EU which is the largest marketplace in the world.  The clout that gives us to get the best deal out of big countries like the United States is immeasurably improved.”

The meeting in Whitehall was to discuss the potential benefits of the deal, which entered its second round of negotiations last week.  

As well as trade tariffs, also on the agenda was the effect of the TTIP on intellectual property, regulation and access to US gas supplies.  

Statistics for UK exports in this sector are already impressive - UK chemicals account for 14% of the UK's total exports to the US. Government analysis suggests that the chemicals sector could see UK exports increase by up to a further 6.75% as a result of a TTIP deal. Much of this would be achieved by greater regulatory cooperation, improvements in the protection of IP, and elimination of tariffs.  

Steve Elliott, chief executive of the Chemical Industries Association, said:  

"Trade is essential to the economic prosperity of our country. We in the chemical industry right across the UK want to play our part in helping to deliver this important new agreement with America.”  

Ahead of the meeting, Harry Swan, Managing Director of Thomas Swan and Co. Ltd. based in Consett, Country Durham, said:  

 “As an SME chemical manufacturing business with an office in the US and exports to over 55 countries worldwide, negotiating an improvement in trading terms with the US is obviously very important for future growth prospects both in the UK and, for companies like ours, in the USA.”  

Dr Tony Bastock, Group Managing Director of Contract Chemicals Ltd in Prescot, Merseyside, said:  

“Growth in trade is essential to the UK's future economic success.  The removal of trade barriers and regulatory convergence, leading to a new partnership with the USA will drive this growth, bringing significant and sustainable benefits for the North West”.  

The meeting in Whitehall was attended by:  

·        Rt Hon Kenneth Clarke MP

·        Rt Hon Michael Fallon MP

·        Steve Elliott, CEO Chemical Industries Association

·        Rene van Sloten, Executive Director of Industrial Policy, European Chemical Industry Council (CEFIC)

·        Dr Tony Bastock, Group MD, Contract Chemicals

·        Bob Bird, Sustainability Manager, Huntsman

·        Richard Atkinson, Chief Counsel, Synthomer

·        Tom Edgar, Global Account Leader, Dow Chemicals

·        Harry Swan, Managing Director, Thomas Swan & Company

·        Sandra Breene, President (Consumer Care, Europe) and Director, Croda

·        Ulrike Schmülling, Senior Adviser, VCI

·        Joe Przeworski, Business Development Director, Ineos

·        Mick Holland, Business Director, Solvay  

In the UK, the chemicals industry reportedly:  

·        Contributes £75 million every day to the UK economy

·        spends over £5 billion each year on research and development

·        invests almost £2 billion a year in capital expenditure

·        generates a trade surplus of £5 billion every year

·        Provides employment for over half a million people in well-paid jobs

·        And is the nation’s number one manufacturing exporter.