Spearheaded in part by the industry association European Chemical Industry Council (Cefic, Brussels / Belgium; www.cefic.org), chemicals and plastics producers have been at the forefront of EU efforts to deal with the unprecedented challenges of the coronavirus outbreak. This includes helping to secure supplies of critical chemicals into medical, environmental and food supply chains amidst border closures and lockdown measures, while also working to ensure the health and safety of its employees.

Plasteurope.com has reported extensively on companies supplying hand sanitiser or its raw materials as well as polymer materials for masks and other medical supplies, but the industry’s contribution, as Cefic points out, goes far beyond that. Its companies, for instance, are advising the European Commission on how to secure cross-border freight transport and guarantee supply chains of essential goods while identifying possible disruptions along the chain. To help its members navigate the new regulations that have been drawn up to deal with the crisis, Cefic has now set up a dedicated Covid-19 helpdesk, which establishes contact points for experts on various impacted areas. These include focal points for logistics and transport issues, cross-border tariffs and duties and petrochemical product-specific issues.

As regards regulations altogether, the industry has a few bones to pick with the commission, EU member states and non-EU countries. While Cefic acknowledges that some are needed, it fears that others could have a “serious and immediate impact” on globally integrated supply chains. The producers especially welcome practical measures such as the “green” lanes that facilitate the flow of goods – see Plasteurope.com of 26.03.2020 – or measures to temporarily waive customs duties and VAT on imports of some medical and protective equipment from non-EU countries; however, they would also like to see these advantages extended to private companies.

The industry association rejects export bans or any other measures that restrict supplies of essential goods. These do more harm than good and run the risk of retaliatory measures from trading partners, it says. Moreover, they result in significant added supply chain management delays and costs at a time when companies should be dedicating their time and resources to increasing global supply and finding durable solutions to the current crisis.

In its letter to the trade ministers, Cefic invites EU member states and the commission to partner with industry and intensify their cooperation. EU authorities and national governments, it believes, should “lead by example by refraining from imposing export and import restrictions or other barriers (such as stockpiling requirements) that will disrupt already stretched global supply chains, both within the EU and with third countries.” Additionally, it urges, EU and national governments should “continue engaging with trading partners such as the US, India, China, Malaysia and Russia, to ensure that all relevant parties refrain from passing such restrictions, as it is “more important than ever” for global supply chains to continue to work as they should.

Further, European chemical producers would like to see member states eliminate tariffs on medicines and medical and protective equipment in an “unbureaucratic and comprehensive” manner, with customs authorities able to accept electronic documents, for example. In particular, critical supplies should be able to clear customs pass while carrying out any needed regulatory documentation checks in parallel. Finally, Cefic says the commission should enhance further investments in crucial industrial sectors in Europe. Within the framework of the new EU industrial strategy, it should also foster innovation and production with more sector-specific policies.