Stephen Elliott, Chief Executive of the UK Chemical Industries Association, welcomed the Government’s Trade White Paper launched yesterday (9 February 2011):
“With governments and business struggling to emerge from the economic downturn, there has never been a better or more critical time for international trade to lead the global recovery. In playing its part, the UK Government must now convert its trade objectives into real commitment towards securing an ambitious multilateral trade deal at the WTO.
As the UK’s most successful manufacturing export sector, the chemical industry adds an average of £30 million per day to this country’s balance of payments. We can achieve even more than that if nuisance tariffs and trade restrictive import duties are dismantled through a multilateral trade deal, giving us better access to raw, intermediate materials and markets to enhance our global competitiveness”.
Significant production and trading of chemicals is no longer limited to industrialised countries - it takes place in every region of the world, with an ever increasing presence from the emerging economies of Asia/Pacific, Latin America and Eastern Europe/Russia. In the first 11 months of 2010, the UK exported £21 billion and imported £13 billion of chemicals to and from non-EU countries. Much of this two way trade attracts import duties, which is why the CIA has lobbied for WTO Doha trade talks to agree to a multilateral chemicals tariff elimination agreement as part of the final deal.
Background
Global challenges in energy efficiency and climate protection, aging demographics, food and water supply to 8 billion people by 2025 or mobility and information technology make access to chemicals and chemistry ever more essential.
Liberalising trade in chemicals also brings local societal benefits to quality of life, health, productivity, convenience and safety. It is inconceivable to have globally competitive automotive, electronics or textiles and clothing industries if access to chemicals is hampered by high import duties. Liberalising trade in chemicals will therefore have positive effects on the development of these and other downstream sectors as well as national economies.
Globalisation and outsourcing have a key role in today’s trading system for every country, whatever their level of development. Most goods crossing borders among WTO countries are burdened by a multitude of tariffs and trade restrictive import duties. A far-reaching conclusion to the WTO Doha Development Round leading to improved and comprehensive access to all WTO markets will stimulate the world economy and shrink poverty.
Contact Name: Fiona Ferguson