BIR predict Brexit have deep impact on international trade

The Bureau of International Recycling (BIR) has expressed deep concerns on the outcome of the Brexit vote. According to the world recycling organization, the UK’s decision to leave the Union may impact trade in the European Union and internationally. Ranjit Baxi, President, BIR, stated that the organization is currently not in a position to assess the economic and political consequences of the vote. He called upon world nations to join hands to promote global free and fair trade, by taking necessary steps to reduce legislative and bureaucratic burdens on businesses.

According to Carolyn Fairbairn, director-general of the Confederation of British Industry (CBI), many businesses in the region are likely to be impacted by the decision. The implications of the vote could be assessed in sometime from now. The government, in partnership with the Bank of England must immediately initiate steps to bring back confidence and stability in the economy. Carolyn reminded that BIR has always strived hard to ensure free and fair trade of recyclables in a sustainable and competitive world economy. The CBI officials added that it would consult with its members and business to formulate an action plan to outline the road to future prosperity.

Meantime, European Steel Association-Eurofer noted that the Brexit vote is likely to impact European steel sector. It is a blow not only for the UK steel industry, but also for the country’s wider economy. The downstream client sectors in the UK will have far-reaching impacts, Eurofer noted.

On the other hand, Wolfgang Eder, Chairman, World Steel Association noted that the UK’s decision to leave the European Union is unlikely to have an immediate strong effect on the European steel industry. Although no massive direct impact is expected, changes in currency values could shift the international balance of power. A considerable depreciation in the value of Euro would lead to increased dumping of steel products from China into the region, Eder noted. It must be noted that the pound had tumbled to its lowest levels against the dollar since 1985 as markets reacted to the result.

Jacob Haylor, executive director of the Environmental Services Association (ESA) noted that regardless of EU membership there is huge scope for the waste and recycling sector to do things better and for the UK to improve its resource efficiency. However, the referendum outcome may intensify the uncertainty around the industry, at least for a short period of time. There are chances that the waste and recycling sector may fall down to the bottom of the government’s in-tray. The government should start working on a long-term framework for the revival of waste and recycling industry, he added.