“We will seek to negotiate a veterinary agreement to prevent unnecessary border checks and help tackle the cost of food; help our touring artists; and secure a mutual recognition agreement for professional qualifications to help open up markets for UK service exporters. We will improve guidance and remove barriers to exporting for small businesses.” 

The new government's focus on facilitating trade with Europe, primarily through regulatory alignment, brings reassurance and confidence for the future of UK trade. Although the manifesto does not explicitly address ongoing trade negotiations by the previous government, it suggests continuity and stability in UK trade policy. However, the emphasis on trade with the EU and other European countries may shift the priority of negotiations with India and the Gulf Cooperation Council. 

“We will lead international discussions to modernise trade rules and agreements, so they work for Britain, promoting deeper trade and cooperation through the World Trade Organisation and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership. Labour supports the implementation of the OECD global minimum rate of corporate taxation and backs international efforts to ensure multinational tech companies pay their fair share of tax.” 

The Labour Party has also pledged to assist smaller businesses in exporting, outlined in their plan for small business, published last November. This plan commits to improving support services and critiques the current government's information dissemination: 

“Indeed, it is no wonder small businesses struggle to export when firms tell us they find the information they need from foreign government websites because ours isn’t good enough, or they have been invited to trade shows with only a few days’ notice. Labour will work alongside the Federation of Small Businesses on a Small Business Export Taskforce to find practical ways to remove export barriers and improve guidance to make exporting easier.” 

This indicates potential enhancements to resources like the ‘Check How to Export Goods’ website, launched after Brexit, and possibly reinstating programs supporting UK companies in overseas trade shows, that were discontinued a few years ago. 

Trade agreements and manufacturing are set to be a key focus for the new government. Jonathan Reynolds, the new Business Secretary, emphasised in his first tweet/LinkedIn post: 

“There’s too much talk of tariffs, which, while significant in some cases, are often less of an issue than agreements on data, recognition of qualifications, and regulatory alignment. The next Labour government will finally publish the Trade White Paper that the current government has failed to deliver, shaped by businesses, to instil confidence in exploring new markets. Crucially, this strategy will be connected to our industrial and foreign objectives. Free trade agreements will always play a role, especially in ensuring access for UK manufacturing, but they are just one tool in our arsenal. I welcome the progress on our accession to CPTPP and the opportunities it will bring.” 

Will the government take a stricter line on ethical controls? In May, David Lammy, now Home Secretary, was urging the previous government to consider banning arms sales to Israel. At the Labour Party Conference last year, Gareth Thomas MP, now Under-Secretary of State at the Department for Business and Trade, declined to answer a suggestion to ban imports of products using forced labour, following the US’ lead. We await new initiatives in this area. 

At Strong and Herd, we will monitor these developments closely and inform our clients and subscribers as soon as new information becomes available.