British Businesses will be given greater access to global markets more quickly as the UK publishes its first Trade Strategy since leaving the EU.
The Strategy will make the UK the most connected nation in the world and secure billions worth of opportunities for businesses, helping deliver the economic growth needed to put money in people’s pockets, strengthen local economies, create jobs, and raise living standards.
Image: UK Gov
It takes a more agile and targeted approach than the previous government’s, focusing on quicker, more practical deals that deliver faster benefits to UK businesses. It strengthens trade defences, expands export finance – especially for smaller firms – and aligns trade policy with national priorities like green growth and services. It’s a smarter, more responsive plan for a changing global economy.
The Trade Strategy:
- Unlocks billions of pounds worth of opportunities for UK exporters through the new Ricardo Fund, which will tackle complex regulatory issues, shape global standards, and remove obstacles for UK businesses selling abroad.
- Expands UK Export Finance (UKEF)’s capacity by £20 billion to a total of £80 billion, announces a new Small Export Builder to give smaller firms better access to export protection insurance, and introduces improvements to help overseas buyers finance repeat orders from trusted UK suppliers in a more streamlined way.
- Vows to bolster our trade defence toolkit and make our trade remedies system more agile, assertive, and accountable to guard British businesses against global turbulence and the growing threat of unfair trading practices.
- Targets more mutual recognition of qualifications to boost the UK’s status as a services superpower – the 2nd biggest exporter of services in the world.
- Builds on existing clean energy and green sector agreements with partners including Norway, Japan and South Korea and explores new, deeper cooperation with markets such as Brazil, the Philippines and Mexico.
- Announces the UK will join the Multi-Party Interim Appeal Arbitration Arrangement (MPIA), a temporary arbitration arrangement for resolving appeals to WTO trade disputes, demonstrating our commitment to an effective rules-based international trading system
The Trade Strategy comes amid a backdrop of turbulent economic waters, resurgent protectionism and unfair trading practices creating significant challenges for businesses and industries across the whole of the UK. Together with our modern Industrial Strategy – a plan to grow the UK’s growth-driving sectors – we are strengthening businesses at home and setting clear direction to ensure success abroad and create high-paid, secure jobs in every part of this country.
It follows three significant trade deals agreed last month with huge benefits for UK businesses, jobs and consumers. Not only does our deal with India add £4.8 billion to the economy and £2.2 billion to wages each year, its reduced and liberalised tariffs mean more whisky and gin is likely to be sold to Indian consumers and British shoppers could see cheaper prices on things like clothes, footwear and food products.
Our landmark deal with the US, the only one they have agreed with any country, protects hundreds of thousands of British jobs from automotive workers in the West Midlands, to aeroplane builders in Wales, to steelmakers in Scunthorpe. It shows the government delivering on its promise to champion British businesses and put jobs and livelihoods first.
The EU agreement, meanwhile, cuts red tape and improves access to our biggest trading partner. It means Scottish salmon farmers can sell their fish more easily to the EU, Welsh sausages and lamb mince exports will no longer be blocked, and British pets can join their owners on holiday with less headache.
Prime Minister, Keir Starmer, said: “What works for business, works for Britain. It means more jobs, more opportunities, and more money in people’s pockets.
“That’s why I’ve backed British industry through global headwinds – securing major trade deals with the US, India and the EU that protect jobs and drive growth right across the country.
“Today’s Trade Strategy is a promise to British business: helping firms sell more, grow faster, and compete globally. It’s about delivering growth as part of our Plan for Change—and making sure working people feel the benefits.”
Business and Trade Secretary Jonathan Reynolds said: “The UK is an open trading nation, but we must reconcile this with a new geopolitical reality and work in our own national interest
“Our Trade Strategy will sharpen our trade defence so we can ensure British businesses are protected from harm, while also relentlessly pursuing every opportunity to sell to more markets under better terms than before.
“Broad and complex trade deals like we secured with India will bring billions to our economy every year but to deliver the Plan for Change we will strike more agile, targeted deals that exploit the sectors which drive the most growth for our economy.
“It comes as the government works in partnership with industry to shape future steel trade measures which will prevent cheap imports from undercutting UK businesses, following the expiry of the current UK steel safeguard measure in June 2026. Collaboration with steel producers, consumers and unions will help ensure the new phase of our trade defences continue to protect UK businesses and jobs, while providing a fair and competitive market.
“UKEF measures included in the Strategy accompanies news this week that up to £13 billion of direct lending will be used to help boost exports across key industrial sectors, marking a £3 billion uplift in UKEF’s facility.”
Rain Newton-Smith, CEO, CBI said: “Businesses are clear that positioning the UK as an outward looking nation is a show of strength in this increasingly fragmented world. Backing free trade is critical to facing the great global challenges and opportunities of our time.
“The UK must be bold and ambitious to be a key player in the global race for growth. Today’s Strategy offers a dynamic vision which will help the UK to position itself as one of the world’s leading locations for investment and trade. Leaning into that openness, our international commitments, and partnerships with like-minded allies will be integral to our success.
“We now need government and business to work together to turn this ambition into action and ensure that the UK seizes on the opportunities available within the global economy.”
Mike Hawes, SMMT Chief Executive, said: “UK Automotive is a trade powerhouse, generating imports and exports worth £108 billion a year and typically Britain’s biggest exporter of manufactured goods. Free and fair trade is fundamental to our success and recent agreements with India, the US and, particularly, the EU signal that intention.
“Today’s trade strategy, aligned to the industrial strategy announced earlier this week, provides confidence to help our sector navigate the many headwinds we face and sets a foundation for future success.
“Balanced trading relationships that break down tariffs and regulatory barriers to trade will enable automotive companies to grow and get great British products into the hands of consumers all over the world, boosting jobs, business and prosperity at home.”
Logistics UK Head of Trade and Devolved Policy Nichola Mallon, said: “The Trade Strategy sets a positive overall direction of travel for growth, but the logistics sector needs to be intrinsic to the tactical delivery plans if the government’s growth ambitions are going to arrive at the intended destination, on time.
“Increasing exports is one of the fastest ways to boost growth yet border bureaucracy has meant that many UK businesses now choose to focus solely on the domestic market. Modernising customs processes is something we have been advocating for some time and our members will be encouraged that the government is harnessing digitalisation and intending to deliver a single trade window. It is essential that further detail is provided and this happens as soon as possible to reduce the considerable data burden and border friction on businesses, particularly SMEs, and that government takes coordinated and concerted action to support UK businesses to start exporting again.
“The creation of a new Supply Chains Centre and Economic Security Advisory Service are positive steps towards monitoring and responding to supply chain risk and the strategy rightly highlights the importance of supply chain resilience to the economy. To be effective, both must be developed in partnership with the logistics sector taking into account the importance of the UK’s international gateways for trade which are a core part of the UK’s Critical National Infrastructure.
“Over the coming weeks, we will continue our work with the government to ensure when the Trade Strategy is implemented it has the necessary detail to address the practical aspects that hit trade such as excessive delays and checks, incompatible IT systems and complicated customs processes.”
