HK traders fear Brexit fallout

27 Jul '16

4 min read

If the UK develops a replacement national chemicals policy, then it might be possible to reintroduce substances that had been phased out in the EU, providing a new market for Hong Kong traders. Some manufacturing companies in the UK, particularly SMEs, are keen to see their REACH administrative burdens reduced.

As regards waste management, EU legislation is prominent in this sector. Recycling targets (such as in the case of waste electrical appliances), the waste hierarchy and definitions of waste are all derived from EU regulations. The UK's waste management sector is strong and includes significant exports of recyclable material to other common market Member States. Given the UK's current favourable position it is assumed that the government would wish that to continue and would not drastically alter waste management law following a Brexit.

Some Hong Kong traders in renewable energy may be concerned about the UK's obligations towards international climate change measures, concerns stemming from Theresa May's decision to dissolve the Climate Department. However, many see it as a purely cosmetic change as the portfolio has been given to the new Secretary of State for Business, Energy and Industrial Strategy, Greg Clark, a published supporter of the “low carbon economy”.

While EU environmental law is expected to continue in the UK for the short-term, a great deal of uncertainty has been caused by Brexit. Many environmental groups, which campaigned for the UK to remain in the EU, fear deregulation and an abandoning of climate change goals. However, given the large number of businesses and industries which benefit from the single market, remaining in the EEA is a likely negotiation goal for the UK. Consequently, if the UK were to have a new arrangement, similar to Norway, it would be bound by many of the same EU environmental protection laws and regulations used today, the report said. (SH)

Fibre2Fashion News Desk – India