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What next for the chemicals and pharmaceutical industry?
October 11, 2016
By: Erick Nfon
Regulatory Scientist Smithers Viscient UK
While the political and social fallout from the Brexit vote is still being debated and assessed by media commentators and the public at large, one thing is clear: the vote will have major implications for the chemicals industry. The question for the chemicals industry is what next for the various regulations and directives governing the chemicals industry—REACH, PPPR, BPR, CLP and Directive 2001/83. This paper looks at the implications with respect to two legal acts that currently regulate the chemicals industry, including pharmaceuticals—Directive 2001/83 and the REACH regulation. The chemical industry including pharmaceuticals is one of the UK’s biggest manufacturing sectors, and is the country’s biggest manufacturing exporter. It employs about 500,000 people directly, and supports several hundred thousand jobs throughout the economy. According to Chemicals Industry Association, chemical and pharmaceutical businesses in the UK represented by the Association, contributed over £15 billion to the GDP of the UK, with exports of nearly £50 billion each year. As withdrawal is not set to occur for at least two years, as outlined under Article 50 of the Lisbon Treaty, the immediate impact of the Brexit vote is likely to be minimal since these regulations and directives will likely remain in place unless the UK government decides to change them. The medium-term impact will mainly derive from the outcome of the negotiations between the UK government and the EU. The options are very limited and most forecasts foresee an interest on both sides to maintain the status quo or something as close to the status quo as possible since a short-term slowdown or a long period of uncertainty could cause gaps for example in the regulation of medicinal products in the UK since pharmaceutical regulations are currently largely determined at the EU level. However, the possible options for the UK at the end of the negotiations could be:
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