Export Alert | Involving Multiple Countries: Business Opportunity or Crisis?

【Answer 1】 01 Europe According to the latest report released by German credit agency Creditreform, the number of companies filing for bankruptcy in Europe is rising steadily. Data show that in 2022, nearly 140,000 companies went bankrupt across 14 Western European EU countries, as well as Norway, Switzerland, and the UK—a 24.2% increase year-on-year. Austria recorded the largest rise in bankruptcies, up 59.7% compared with the previous year, followed by the UK (55.9%), France (50%), and Belgium (41.7%). In Eastern European EU countries, corporate bankruptcies surged 53.5% year-on-year to over 60,000—bringing the combined total for Eastern and Western Europe close to 200,000. The sectors hardest hit were retail and hospitality (bankruptcies up 34.5%), followed by construction (24.7%), services (20%), and manufacturing (13.1%). During the two pandemic years, bankruptcy numbers declined correspondingly, as many EU countries protected firms from insolvency through subsidies. Now, that phase has ended. The surge in bankruptcies can be described as a normal and necessary development. Bankruptcies are expected to continue rising over the coming months. 02 United Kingdom According to data released by the UK Insolvency Service—the government body responsible for corporate insolvency and liquidation—more than 22,000 UK companies registered bankruptcies last year, an increase of 57% year-on-year and the highest figure since 2009. The hardest-hit sectors were construction, retail, and hospitality. The UK economy faces multiple pressures, including sluggish productivity growth and weak investment, while numerous business activity indicators continue to decline. Data from the UK Chemical Industries Association (CIA) show that the chemical industry—the UK’s largest manufacturing export sector—saw a sharp sales decline in Q4 last year. Fifty-three percent of CIA member firms reported reduced exports to EU countries, while 50% faced falling domestic and non-EU demand. 03 United States According to reports by The Washington Post and The Hill, the number of U.S. companies filing for bankruptcy has continued rising this year. In the first four months alone, 236 major U.S. companies filed for bankruptcy—more than double the figure for the same period in 2022 and the highest since 2010. The sectors most affected were consumer-facing businesses, followed by industrial firms and financial services companies. In recent weeks, several well-known large corporations—employing hundreds or even thousands of staff—have filed for bankruptcy protection. As U.S. interest rates rise and pandemic-era government support programs for businesses have largely ended, corporate bankruptcies are increasing. Should a U.S. debt default become unavoidable, the situation will certainly worsen. 04 India After the Reserve Bank of India announced on the 19th that the 2,000-rupee note—the highest denomination currently in circulation (approximately RMB 170)—will be withdrawn from circulation by the end of September, India has witnessed a surge in large-cash purchases.

European Chemical Industry Recovery Still Faces Risks

【Answer 2】 Amid renewed outbreaks of COVID-19, the outlook for Europe’s chemical industry in 2021 remained fraught with uncertainty. At the end of 2020, coronavirus cases surged across Europe—particularly in the UK, where daily new case counts repeatedly hit record highs. However, positive news emerged as the EU and the UK reached a trade agreement ensuring tariff-free trade, which is expected to support recovery in Europe’s chemical industry. On December 24, the EU and the UK finalized an agreement on trade and future cooperation, ending months of disagreement and intensive negotiations. The deal was struck one week before the end of the Brexit transition period on December 31. The UK had voted to leave the EU in a June 2016 referendum and formally exited the bloc in January 2020. The agreement is based on a free trade pact covering goods and services, stipulating zero tariffs and zero quotas for all goods meeting appropriate rules of origin. Both sides pledged to maintain high levels of protection in areas such as environmental protection, climate change and carbon pricing, social and labor rights, tax transparency, and state aid—and to ensure a level playing field through effective domestic enforcement. Meanwhile, the European Commission stated that binding enforcement and dispute settlement mechanisms would safeguard the rights of businesses, consumers, and individuals. “This means EU and UK businesses compete on a level playing field, preventing either side from using its regulatory autonomy to grant unfair subsidies or distort competition,” the report noted. Nevertheless, as the UK has left the EU single market and customs union, the free movement of people, goods, services, and capital between the UK and the EU ceased on January 1. European Commission President Ursula von der Leyen called the agreement “a fair and balanced deal.” Meanwhile, UK Prime Minister Boris Johnson hailed it as “the first-ever free trade agreement with the EU based on zero tariffs and zero quotas” and “the largest bilateral trade agreement ever concluded by both parties,” covering trade worth £668 billion (approximately $898 billion) in 2019. This agreement carries significant implications for the chemical industry. The UK Chemical Industries Association (CIA) estimates that 60% of UK chemical exports go to the EU, while 75% of UK chemical raw materials originate from the EU. Cefic and the CIA jointly estimate annual chemical trade between the EU and the UK at approximately €44 billion ($54 billion). UK withdrawal from the single market and customs union means that, despite zero tariffs, non-tariff trade barriers persist—including increased bureaucracy (e.g., customs declarations and other documentation) and higher regulatory compliance costs for businesses. Cefic and the CIA estimate that Brexit-related regulatory burdens impose direct costs totaling around £1 billion on UK chemical enterprises. The CIA stated that the agreement’s confirmation of tariff-free trade is “a huge relief.” Steve Elliott, CEO of the CIA, said: “We have consistently advocated avoiding the threat of tariffs, so we warmly welcome both sides’ commitment and hard work in securing this outcome.”

UK Chemical Sector Calls for Support Ahead of Autumn Budget – CIA

1 day ago

The Chemical Industries Association urges the UK government to launch a £1 billion investment programme to bolster the chemicals sector amid high costs. Industry leaders welcomed the Jackdaw gas field approval but urged tax reforms to improve energy competitiveness.

icis

2026-10-23

UK Chemical Sector Calls for Support Ahead of Autumn Budget – CIA

UK Chemical Sector Calls for Support Ahead of Autumn Budget – CIA

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