This is their first Trade Strategy since leaving the EU, aiming to position Britain as the world's most connected nation.
The United Kingdom on June 25, published a comprehensive new Trade Strategy designed to protect and boost British businesses on the global stage. Spearheaded by the Department for Business and Trade, the strategy outlines a more agile and targeted approach to international trade and robust support for exporters.
The new strategy seeks to make the UK the "most connected nation in the world," securing billions in opportunities for businesses and raising living standards across the country. It marks a departure from previous, broader approaches, instead focusing on practical deals that deliver faster benefits to UK firms, with a particular emphasis on services and high-growth sectors.
A cornerstone of the strategy is the introduction of the new Ricardo Fund, which will inject £5 billion worth of opportunities for UK exporters. This fund is earmarked to tackle complex regulatory issues and dismantle obstacles currently faced by British businesses selling abroad. Complementing this, UK Export Finance (UKEF) will see its capacity expanded by £20 billion, reaching a total of £80 billion. This expansion includes a new "Small Export Builder" scheme, specifically designed to grant smaller firms’ better access to export protection insurance, and improvements to streamline financing for overseas buyers making repeat orders from UK suppliers.
Recognizing the current climate of turbulent economic waters, the strategy also vows to bolster the UK's trade defense toolkit. It aims to make the trade remedies system more agile, assertive, and accountable. This comes as the government collaborates with industry to shape future steel trade measures, ensuring protection against cheap imports once the current safeguards expire in June 2026.
In a move to reinforce the UK's status as the world's second-biggest exporter of services, the strategy targets more mutual recognition of qualifications. Furthermore, it builds on existing clean energy and green sector agreements with partners like Norway, Japan, and South Korea, while actively exploring deeper cooperation with emerging markets such as Brazil, the Philippines, and Mexico.
Demonstrating a strong commitment to an effective rules-based international trading system, the UK has also announced its intention to join the Multi-Party Interim Appeal Arbitration Arrangement (MPIA). This temporary arbitration arrangement provides a mechanism for resolving appeals in WTO trade disputes.
The new strategy follows a series of significant trade deals secured in recent months. The deal with India is projected to add £4.8 billion to the economy and £2.2 billion to wages annually, offering reduced tariffs on goods like whisky, gin, clothes, and footwear. A landmark agreement with the US, the only one of its kind, is cited as protecting hundreds of thousands of British jobs in sectors from automotive to steel.
