The UK government’s newly unveiled Trade Strategy promises to “reset” the nation’s global trade relationships and reinforce economic resilience – with major implications for the logistics and supply chain sectors.
Published today by the UK Department for Business and Trade, the strategy sets out a more “agile and pragmatic” approach to trade policy in response to global protectionism and geopolitical disruption.
Key measures include £20bn of new capacity for UK Export Finance (UKEF), modernisation of border processes, and the creation of a new Supply Chains Centre and Economic Security Advisory Service.
The Supply Chains Centre will identify and mitigate risks to critical supply routes and infrastructure, while the Advisory Service will provide government and industry with insight into emerging economic threats, such as sourcing disruptions and trade weaponisation.
Logistics UK welcomed the direction of travel but cautioned that “the logistics sector needs to be intrinsic to the tactical delivery plans”.
Head of trade Nichola Mallon urged swift rollout of digital customs tools, notably the promised Single Trade Window and Digital Trade Corridors, to reduce post-Brexit frictions for SMEs.
“Modernising customs processes is something we have been advocating for some time,” she said.
For logistics operators, the strategy’s focus on digitalisation, streamlined export services, and resilient infrastructure could prove transformative.
The government has pledged to simplify online export support, pilot technology-enabled corridors with Europe, and reduce paperwork through legal parity for digital documents.
The strategy also introduces a new Ricardo Fund to tackle market-access barriers, support regulators in shaping global standards, and reduce friction for exporters grappling with complex foreign compliance regimes.
To improve SME participation in international trade, a new Small Export Builder scheme will be launched, offering smaller firms easier access to export finance and insurance for repeat orders via a digital-first platform.
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Strategically, the strategy dovetails with the UK’s Industrial Strategy by identifying high-growth sectors – including clean energy, advanced manufacturing and digital technologies – as trade priorities.
These are sectors heavily dependent on sophisticated supply chains and international freight flows.
Meanwhile, new deals with India, the USA and the EU are expected to reduce tariffs and regulatory barriers.
The India free trade agreement (FTA) alone is forecast to add £4.8bn to the UK economy annually, potentially increasing trade volumes for UK exporters and logistics providers.
However, the strategy also acknowledges structural weaknesses in UK goods trade and declining SME exports to the EU.
Since Brexit, around 16,400 UK firms have stopped exporting to the bloc. The government aims to reverse this trend through improved professional mobility, regulatory recognition, and reduced red tape.
Notably, the UK will also join the WTO’s Multi-Party Interim Appeal Arbitration Arrangement to uphold a rules-based system and defend its commercial interests in trade disputes.
Mallon concluded: “To be effective, the new institutions must be developed in partnership with the logistics sector, taking into account the importance of the UK’s international gateways for trade.”
