Industry reacts to new British Trade Strategy

Leaders from multiple industries have reacted positively to the announcement this week of the Government’s new UK Trade Strategy, hot on the heels of myriad trade deals – with India, America and the USA.

Balwinder Dhoot, director of growth and sustainability at The Food and Drink Federation, said the organisation is pleased by the plans to remove barriers to trade. “The continued focus on a renewed SPS agreement with the EU, to reduce the current burdens that businesses face when trading with our closest and most important partner is welcome.” He added the inclusion of measures to strengthen imports will additionally strengthen the UK’s food security.

“We look forward to working with Government over the coming months to turn ambition into action and maintain momentum in building stronger trade relationships across global markets.”

This is the first Trade Strategy published since Britain left the EU, with the aim to give greater access to global markets, securing what the Government says could be billions worth of opportunities “helping deliver the economic growth needed to put money in people’s pockets, strengthen local economies, create jobs, and raise living standards”.

Key takeaways from the UK’s new Trade Strategy

- The new Ricardo Fund tackles complex regulatory issues, removing obstacles for selling abroad.

- The strategy expands UK Export Finance (UKEF’s) capacity by £20 billion, and announces a new Small Export Builder, giving smaller firms better access to export protection insurance, and introducing improvements to help overseas buyers finance repeat orders from UK suppliers in a more streamlined way.

- The Government says it will make the UK’s trade remedies system more agile and accountable, to guard British businesses against global turbulence.

- The strategy targets more mutual recognition of qualifications, to boost the UK’s status as a services superpower.

- It builds on existing clean energy and green sector agreements with partners including Norway, Japan and South Korea, and explores agreements with new partners.

- And it 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.

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.”

Trade minister, Douglas Alexander, added, “This new hard-headed, data driven, and agile approach to trade policy is guided by our pragmatic patriotism. In this changed and challenging world, we will promote what we can and protect what we must to advance the UK’s national interest.  Through our Trade Strategy, we are supporting our businesses to expand and export with a wider range of trade tools that harness our high-growth industries of the future to deliver this government’s Plan for Change.”

The industry reacts

Shevaun Haviland, director general, British Chambers of Commerce: “The Trade Strategy sets out a clear, evidence-based approach to raising the UK’s export game. It rightly targets our strength in services, and vital high-growth goods sectors while identifying key markets in the Indo-Pacific, Americas and European neighbourhood.

“A focus on sectoral and digital trade deals is also welcome, alongside a commitment to a functioning rules-based global trading system. 

“Place matters in trade. This strategy can generate economic growth in every nation and region of the UK, lowering tariffs and removing trade barriers. Our Chamber Network stands ready to build, invest and deliver on international trade as a partner of government and an engine for economic growth.”

Rain Newton-Smith, CEO, Confederation of British Industry: “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.”

Stephen Phipson CBE, CEO, Make UK: “Industry will welcome the Trade Strategy which, for the first time, aligns hard on the heels of the Industrial Strategy and is a perfect example of joined up thinking across Government which has long been missing.

“In particular, as well as a focus on new markets, it will help optimise market access and signposting for companies, especially SMEs, to take advantage of current trade deals with a new focus on strategic economic partnerships with key trading partners.

“At the same time, as well as helping boost exports, it will strengthen trade defences against the threat of dumping and support UK firms in reporting possible trade discrepancies to the Trade Remedies Authority.”

Marco Forgione, director general, Chartered Institute of Export and International Trade: “The new Trade Strategy is a welcome step forward that reflects many of the priorities we’ve been championing on behalf of our members, especially SMEs, who need targeted, accessible support to grow internationally.

“From the Small Exports Builder to enhanced UK Export Finance, these are practical tools designed to reduce friction and unlock potential for thousands of firms across the UK.

“We’ve worked closely with government to feed in the real-world experiences of our members, and it’s encouraging to see those insights reflected in today’s announcement.

“Launched alongside the Industrial Strategy, this sets a more joined-up direction for trade and growth. Now the focus must be on delivery, and we stand ready to help make it happen.”

Tina McKenzie, policy chair, the Federation of Small Businesses: “Small firms know exporting is good for growth, so it’s good to see a clear strategy on trade. We welcome the government’s commitment to creating better digital tools, less red tape and putting stronger focus on practical support beyond just trade deals. 

“We also need to see more money and new funding programmes for SMEs wanting to trade internationally, as well as more bespoke support for the smallest firms, who do not qualify for one-to-one help.

“Small firms have been bogged down by unnecessary rules and costs for far too long, and today’s strategy is the first step to creating a better environment for exporters and importers.”