LONDON – On Thursday, June 26, 2025, the United Kingdom government launched a comprehensive new Trade Strategy in London, signaling a significant pivot in its global economic engagement. Introduced as a key component of the wider “Plan for Change,” the strategy sets out ambitious goals aimed at positioning the UK as the most connected nation globally while simultaneously safeguarding vital domestic industries and fostering sustained growth for British businesses on the international stage.
Strategic Vision and Core Objectives
The newly unveiled strategy is built upon a clear and forward-looking vision: to equip UK firms with the tools and support necessary to thrive in an increasingly competitive global marketplace. At its heart are three interconnected objectives: enhancing the UK’s global connectivity, providing robust protection for critical sectors of the economy, and actively supporting the expansion and success of businesses, from multinational corporations to small enterprises.
This strategic blueprint acknowledges the evolving landscape of global trade and seeks to proactively address both opportunities and challenges. It moves beyond traditional goods-focused trade agreements to emphasize the growing importance of services and high-growth sectors, where the UK holds a competitive advantage.
Financial Commitments and Export Support
A central pillar of the new strategy is a substantial package of financial support and enhanced export financing. The government has pledged to unlock £5 billion worth of new opportunities directly for businesses. This is coupled with a significant expansion of the capacity of UK Export Finance (UKEF), the UK’s export credit agency.
UKEF’s capacity is set to increase by £20 billion, raising its total lending and support power to an impressive £80 billion. This expansion is intended to provide British exporters with greater access to crucial working capital and insurance, enabling them to secure larger and more complex contracts overseas, particularly in markets where private finance might be hesitant.
Streamlining Deals and Targeting Growth Sectors
The strategy signals a shift towards securing quicker, more practical deals. This approach aims to reduce complexity and accelerate the benefits of trade agreements for businesses. The focus is particularly sharp on the services sector, a cornerstone of the UK economy, and other identified high-growth sectors where global demand is projected to rise significantly.
Recognizing that non-tariff barriers and regulatory hurdles can be as significant an impediment as tariffs, the strategy introduces the “Ricardo Fund.” This dedicated fund is specifically designed to address regulatory issues and actively work towards removing obstacles that hinder UK exporters. The Ricardo Fund is mandated with the explicit goal of unlocking £5 billion worth of opportunities for British firms by tackling these persistent market access challenges.
Boosting Small and Medium-Sized Enterprises (SMEs)
A key recognition within the strategy is the vital role that smaller businesses play in the UK economy and their potential for export growth. To support this segment, a new initiative, the “Small Export Builder,” is announced. This program is tailored to give smaller firms better access to export protection insurance, mitigating the risks associated with trading internationally and encouraging more SMEs to venture into export markets.
Furthermore, the strategy includes targeted improvements to help overseas buyers finance repeat orders from trusted UK suppliers. This measure aims to strengthen existing trade relationships and provide a smoother financing process for international partners looking to continue sourcing goods and services from the UK.
Strengthening Trade Defences
In addition to proactive measures to boost exports, the strategy also addresses the critical need to protect domestic industries from unfair trade practices. It outlines steps to strengthen trade defences, ensuring the UK has the necessary tools to respond effectively to harmful dumping or subsidies by foreign competitors.
A notable specific inclusion in the strategy is the commitment to future steel trade measures. This follows the anticipated expiry of the current UK steel safeguard measure in June 2026, signaling the government’s intent to maintain robust protections for this strategically important sector beyond that date.
Outlook and Implementation
The success of this new Trade Strategy will depend significantly on its implementation. While the stated goals and allocated resources are substantial, businesses will be closely watching to see how quickly the promised benefits materialize and how effectively the new initiatives, such as the Ricardo Fund and Small Export Builder, translate into tangible support on the ground.
The strategy represents a bold statement of intent from the UK government, aiming to harness the nation’s strengths in services and high-growth sectors while providing targeted support and protection where needed. The focus on enhanced connectivity, substantial financial backing through UKEF, and specific measures for SMEs and regulatory obstacle removal underscores a determined effort to redefine the UK’s position in the global trading system in the years ahead.
