Europe
by Sean Milmo
European Correspondent
milmocw@rodmanmedia.com
The UK coatings industry is pessimistic about its future after the country voted by a 52/42 percent margin in favor of
leaving the European Union.
A survey of its members by the British
Coatings Federation (BCF) soon after the vote
found that over 70 percent of them believe that
EU withdrawal, dubbed Brexit, will have negative effects on their businesses.
With around 60 percent of UK coatings exports going to other EU country, foreign sales
were forecast to decline by 25-35 percent.
Nearly a fifth of members were going to reduce staff, while 20 percent could potentially
move their businesses out of the country.
However, the BCF reckons that the outlook
is not all gloomy. “Given the importance of
Europe to our members, I definitely have con-
cerns about the economic impact of Brexit,” said
Tom Bowtell, the association’s chief executive.
“However there may also be opportunities.”
Brexit would give the UK the chance of
reaching its own free trade agreement, which
could open up new coatings markets outside
Europe. Once the country has left the EU, it
would be able to draw up regulations aimed at
easing the cost burden on business.
Just how much changes in the post-Brexit
era impact the coatings sector will depend on
the outcome of the negotiations on a withdrawal agreement between the UK and the EU.
These are likely to begin early next year, after
the UK has formally told the EU Council, representing EU governments, that it is invoking
Article 50 of the 2007 Lisbon Treaty which
allows member states to pull out of the Union.
The Brexit negotiations will then have to be
Brexit would give
the UK the chance
of reaching its
own free trade
agreement, which
could open up
new coatings
markets outside
Europe.
How Will Brexit Effect the UK Coatings Industry
