Trading for Growth: Unpacking the UK’s New Trade Strategy

Last Thursday, the UK Government unveiled its new Trade Strategy (the Trade Strategy). It follows on from the publication earlier that week of the new Industrial Strategy – you can read more about that in our blog. The Trade Strategy was unveiled alongside a new edition of the UK Global Trade Outlook, which looks at some of the long-term trends likely to shape the global economy and international trade in the coming decades.

Before we get into some of the more specific measures announced in the Trade Strategy, one particular noteworthy point is the recognition and acknowledgement that the UK is a “services superpower”. As the Prime Minister said when he unveiled the Trade Strategy, “Trade isn’t just about goods. We’re a services superpower, so we’ll back our exporting services as well, show more flexibility in that approach.”

Key measures in the UK’s Trade Strategy

Some of the notable measures announced in the Trade Strategy include:

• The UK joining the Multi-Party Interim Appeal Arbitration Arrangement (MPIA);
• Moving towards a trade policy that uses a wider range of tools to seize opportunities that promise growth in the short to medium term, like Digital Trade Agreements (DTAs) and sector-specific agreements, alongside traditional Free Trade Agreements;
• Securing Mutual Recognition of Professional Qualifications (MRPQs) in high value Professional and Business Services (PBS) sectors with key partners in Europe, the US, Canada, Australia, New Zealand, India and the Middle East;
• Launching the Ricardo Fund, to provide increased support to UK regulators and the UK’s overseas trade teams to remove regulatory barriers for UK businesses trading abroad;
• Establishing a regular, structured two-way dialogue between the Department for Business & Trade and UK businesses on evolving EU legislation;
• Increasing UK Export Finance’s (UKEF) capacity by £20bn to £80bn. UKEF will deploy this capacity to drive export-led growth across the UK;
• Working across government to increase digitisation of trade processes;
• Introducing (when parliamentary time allows) legislation to expand powers to respond to unfair trade practices, and guard against global turbulence in critical sectors, such as steel;
• Introducing (when parliamentary time allows) legislation to adjust the TRA’s policy guidance and operating framework, enabling it to adopt a more assertive approach on issues like imports from countries with unfair market distortions. Alongside, increasing speed and reducing cost of accessing trade remedies and making the trade remedies system more accountable to Ministers;
• Doubling the period that Parliament has to scrutinise new comprehensive free trade agreements between the publication of the Government’s Section 42 report and the commencement of the statutory CRaG scrutiny period from 10 to 20 days, allowing for more robust and deeper parliamentary scrutiny; and
• Launching a review of the UK’s approach to ensuring responsible business conduct, focusing on the global supply chains of businesses operating in the UK.

Conclusion

Sitting alongside the extensive measures outlined in the Industrial Strategy, the Trade Strategy represents an ambitious programme of work for government and business alike. However, in an ever-changing geopolitical trading landscape, you can be sure this won’t be the last word on the UK’s trade strategy.