The UK Trade Strategy is here

The UK’s new Trade Strategy, presented to Parliament in June 2025, outlines a pragmatic and strategic approach to navigate a rapidly changing global trading landscape marked by geopolitical, geoeconomic, and technological disruptions. The strategy emphasizes the UK’s commitment to remaining an open trading nation while adapting to a more protectionist global mood. Key themes include fostering strategic partnerships, supporting businesses through a diversified trade policy toolkit, ensuring secure and resilient trade, and promoting accountable trade practices. The strategy aims to leverage the UK’s strengths, particularly in services and growth-driving industrial sectors, to boost economic growth, create jobs, and enhance national security.

Main Themes and Key Ideas/Facts

1. Adapting to a Changing Global Trading Context

The world is experiencing significant shifts, moving from an era of convergence and multilateral

integration to one of divergence and fractured power centres.

• “The world is changing. Geopolitical, geoeconomic and technological shocks are

reshaping the international order.” The strategy acknowledges that the UK must

respond to this “moment of tumult” with “pragmatic patriotism.”

• Resurgent Protectionism: “resurgent protectionism is disrupting that truth. We are

witnessing divergence after decades of convergence.” This trend challenges traditional

multilateral negotiations and universal rules.

• Fractured Globe: The strategy notes that a “generation ago, a survey of the outlook for

trade might have begun with multilateral bodies, such as the World Trade Organization…

But we need to start with realities of the changed world we are dealing with today – no

longer a planet of ever-deepening integration, but a newly fractured globe, defined by

rival power centres.”

• Major Trading Partners: The UK rejects the notion of choosing between the “world’s ‘big

three’ economies” (EU, US, China), as they represent a significant portion (69%) of the

UK’s global trade (£1.2 trillion in 2024).

• WTO Reform: The UK is committed to supporting the WTO in transforming itself to

address modern challenges, advocating for new rules, efficient dispute resolution,

transparency, and engendering confidence among members.