Britain’s first trade strategy for more than three decades has been unveiled as Keir Starmer tries to give businesses a helping hand to take on Donald Trump’s tariffs.
With global trade and supply chains still in turmoil from President Trump’s “Liberation Day” tariff regime, the new trade strategy is the latest so-called Brexit freedom the prime minister has deployed to try to boost growth.
The new strategy – which acknowledges the current “troubled waters” of global trade – sets out how the UK will unlock £5 billion for businesses and expand UK export finance (UKEF) capacity to £80 billion, delivering growth as part of the government’s Plan for Change.
It comes just 10 days after Sir Keir finalised most of his deal with President Trump for the first post-Brexit UK-US trade agreement at the G7 summit in Canada. Both the president and prime minister hope that it will be the starting block for a number of other deals on future industries, including artificial intelligence.
Sir Keir 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.”
The prime minister has signed a major Brexit reset deal with the EU and a full trade agreement with India in the last month.
His next target is the Gulf States but deals with China and parts of Africa are also being looked at.
The last time the UK had an independent trade strategy was in the early 1990s, when the then Tory trade and industry secretary Peter Lilley led the negotiations on the Uruguay Round on bringing down tariffs and barriers between 123 countries.
The new strategy means that British businesses will be given greater access to global markets more quickly.
It follows the launch of the E-Commerce trade hub earlier this week which is expected to increase trade by £7bn.
Margo Forgione, director general of the Chartered Institute of Export and International Trade who led the two year work on the hub, believes that the changes will help 70,000 businesses which are ready to trade abroad but currently do not.
He said: “Digital trade is a high-growth route for the UK economy. If we give firms the tools they need, they will do the rest. That’s what this blueprint offers: a credible roadmap to help businesses scale across borders.
“All the evidence shows that businesses which trade internationally are more resilient, more sustainable, employ more people, are more innovative, and are more profitable.”
The government’s new trade strategy is aimed at making 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.
In an apparent reference to the problems caused by wars in the Middle East and Ukraine, business 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.”
Among its top aims is to target more mutual recognition of qualifications to boost the UK’s status as a services superpower – the 2nd biggest exporter of services in the world.
It also seeks to build 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.
The UK is also set to 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 leaders have welcomed the strategy’s publication at a difficult time.
Ian Stuart, chief executive of HSBC UK, said: “The strategy rightly recognises the challenges many exporters face at a time of heightened global uncertainty. This is a necessary first step in giving businesses the tools they need to thrive on the world stage.”
Shevaun Haviland, director general at the British Chambers of Commerce (BCC), said: “The Trade Strategy sets out a clear, evidence-based approach to raising the UK’s export game..”
Jon Holt, group chief executive of KPMG, said: “Today we have a clear plan. From removing barriers to overseas markets, to making it easier for our highly skilled people to travel and work across borders, this approach will strengthen our connectivity, boost inward investment and make sure our sector remains globally competitive.
One of the biggest beneficiaries of the US deal was car makers with the prime minister visiting Jaguar Land Rover when he persuaded President Trump to remove tariffs on UK made vehicles.
Mike Hawes, chief executive of the Society of Motor Manufacturers and Traders (SMMT), said that the trade strategy would help the UK’s status as “an automotive powerhouse”.
He said: “Balanced trading relationships that break down tariffs and other 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.”
