Towards a UK trade strategy

The volume of global goods flows is back on the rise after a difficult 2023 caused by inflation and interest rate hikes. But with the return of President Trump to the White House, the outlook is deeply uncertain. Trade tensions are expected to escalate in the coming years, as economies become increasingly concerned over the risks of supply chain disruption.

Meanwhile, the picture for UK trade has been lacklustre in recent years. It has exercised its post-Brexit independent trade policy to rack up a series of roll-over deals and new trade agreements with countries such as Australia and New Zealand, but larger deals have proved elusive, and the change to the UK-EU relationship has reduced goods flows in both directions.

In this report we set out what the direction of the government's upcoming trade strategy should be: focussed on green, inclusive growth, while meeting the UK’s geopolitical objectives and securing economic resilience for critical sectors.