BREXIT’S EFFECTS ON GERMAN-UK COOPERATION IN CHEMICAL INDUSTRY

Abstract

Europe is the second largest chemicals producer in the world, yield only to the Asian region, where China is the undisputed leading country. The chemical industry is of great importance for both countries and it determines the structure of their economies. In turn, Brexit significantly affected the current dynamics and state of bilateral relations. Fairly long, stable trade and economic relations with Great Britain were of great importance for German business that did not hide its interest in adopting the agreement, which exclude rigorous trade tariffs and barriers. Being the largest EU economy with a clear export orientation, Germany was not ready to lose a huge export market. That is why Germany has made a significant contribution to negotiation process regulating the UK’s exit from the EU and put an effort to reach the consensus among parties concerned. Managing the UK’s departure from the European Union was not an exception from such ambitious program of six-month Germany’s Presidency of the Council of the EU (July–December 2020). Despite the fact that the Agreement on the UK’s withdrawal from the Eropean Union, which formally ended the state’s membership in the EU, had been adopted, a qualitatively new document was required. The Trade and Cooperation Agreement (TCA) was adopted, which determines a new framework for relations between the EU and the UK. The TCA significantly determines the entire spectrum of cooperation areas and includes the new interplay in the chemical industry, including the implementation of REACH (Registration, Evaluation and Authorisation of Chemicals) regulation. This article focuses on current state of German-UK economic ties and illustrates the role of chemical industry in the economies of both countries as well as points out the countries’ performance in the global industry.