Crunch time for Brexit in the UK

The Chemical Industries Association, a UK industry group, says it is lobbying members of the UK Parliament to accept an agreement between the UK and the European Union that would allow UK firms to continue to freely trade chemicals for up to two years after Britain exits—or Brexits—the EU. If parliamentarians vote on Dec. 11 to reject the agreement, the March 29, 2019, Brexit could bring severe trade disruption, the group says. It is unclear which way the 650 parliamentarians will vote. Cefic, Europe’s leading chemical industry association, describes the agreement as necessary for industry to prepare for Brexit with minimal trade disruption. Rejecting the deal would involve significant risk to Ineos, one of the UK’s largest chemical producers, with delays at ports disrupting complex supply chains, says Ineos chairman Jim Ratcliffe. About 60% of the UK’s chemical and drug exports, worth about $64 billion annually, go to countries in the EU. About 75% of the industry’s chemical imports and raw materials come from the EU.