Brexit was sold on the possibility that it would free us from EU regulation and allow Great Britain to thrive. Whilst in theory Brexit gives GB the freedom to regulate in a better way, we are seeing that our close relationship with the EU still has a major influence on trade and therefore regulatory requirements placed upon British wood-based panel manufacturers.
We cannot ignore this, but could we do better?
The UK’s departure from the EU marked the beginning of its transition towards establishing its own regulatory frameworks. The UK-EU Trade and Co-operation Agreement set the foundation for future relations but did not eliminate all barriers. Unfortunately, with a turbulent political backdrop there has been some stagnation with some GB regulations that affect our sector, whilst the EU has pushed forward with revising regulation, resulting in divergence which is about to hit.
The three main regulations that have been in focus for the wood-based panels sector are the Construction Products Regulation, REACH and the UK Timber Regulation (UKTR), which were all adopted into GB law following withdrawal from the EU.
We have seen the previous UK government on at least two occasions indicate to the construction products industry that the acceptance of CE marking would end. Industry (manufacturers and Approved Bodies) prepared but deadlines came and passed, not without frustration or cost.
The switch wasn’t as simple as first thought because testing in some sectors wasn’t possible either through capacity or ability to perform particular tests for some sectors.
To date, no legislation has been passed to cease the acceptance of CE marking. [It is noted, however, that the current government has set out how any cessation should occur, including transition periods, which allows businesses to plan].
Indeed, there are some calls from the construction products sector to permanently accept CE marking. This in itself can cause issues especially for UK Approved Bodies that cannot work in Europe as Notified Bodies. This could be solved through mutual recognition between the EU and GB but there must be political will to do this from both.
Regulatory divergence can lead to increased costs for businesses operating in both markets. Whilst in theory Brexit gives GB some flexibility to regulate better or deliver in a more pragmatic way, it can also expose GB manufacturers to unfair competition from manufacturers looking to GB as an easy regulatory route, whilst GB manufacturers are still burdened by EU law.
Take for example the EU Deforestation Regulation (EUDR) and compare it with the UKTR. The UKTR will have a lower regulatory threshold than the EUDR.
This, coupled with GB manufacturers having to comply (by default) to the EUDR requirements, could make GB manufacturing businesses less competitive. If we are to meet the goals of building with more timber sourced from British forests (ie, the Timber in Construction Roadmap), we not only need to plant more productive trees, we also need to support businesses to invest and build more capacity to the benefit of GB.
I recognise that we cannot do without imports, but we should ensure the regulatory framework in place doesn’t adversely affect businesses located here. So, is divergence a good or a bad thing?
Maybe this is the wrong question. Perhaps we should be asking ourselves whether GB can deal with divergence in a pragmatic way?
In a way that benefits or at least doesn’t put British businesses at a disadvantage on the global markets and creates a level playing field for all businesses to compete in a fair framework, whilst allowing regulation to function properly and achieve its goals.
ABOUT THE WPIF
The Wood Panel Industries Federation (WPIF) is a representative organisation giving voice to the industrial manufacturers in the United Kingdom and Ireland of wood chipboard, oriented strand board (OSB) and medium density fibreboard (MDF).
With a particular focus on technical and environmental influences, the role of the federation is to support its members’ processing activities and their products in the market.
