What the UK general election manifestos say on international trade

Ahead of the UK general election on 4 July, the country's political parties have set out what they aspire to deliver if chosen to form the next government – and businesses across the country are hoping to see policies that will support growth.

"The UK's millions of entrepreneurs are very used to having to create a compelling offer to outpace their competitors. In this election, they are looking to those seeking their votes to do the same," says the Federation of Small Businesses (FSB), a membership organisation for SMEs and the self-employed. The FSB has several asks of the next government, including the mainstreaming of trade and customs policy so all departments with a bearing on trade are working to a shared strategy, and the delivery of a small business-friendly single trade window.

Meanwhile, in a statement published last week, the Society of Motor Manufacturers and Traders (SMMT) – which represents more than 800 automotive companies in the UK – says it wants to see "a long-term strategy that supports our world-leading automotive manufacturing base."

"We need an industrial strategy that enables growth, sustainable and affordable energy, investment in future skills and a free and fair trade framework that guarantees industry access to existing and emerging markets, on a level playing field," says Mike Hawes, the SMMT's chief executive.

Make UK, which provides political representation on behalf of UK business in the engineering, manufacturing and technology-based sectors, has similar demands. In its Makers' Manifesto, published at the end of May, it sets out a comprehensive package of measures it would like to see. These include the linking of trade strategy and industrial policy to maximise future trade opportunities, and practical and financial support to help boost export growth, particularly for SMEs. In addition, Make UK calls for efforts to improve the UK's trading terms with the EU, and for government to work with business on a trade agreement programme that is "flexible and bespoke", incorporating free trade deals that support the UK's strategic industrial interests.

In their pre-election manifestos, the two largest political parties in the UK have plenty to say on trade. Here's a brief summary of the key pledges from both the Conservatives and Labour as they outline their visions for the country's future.

Conservatives pledge to "back business to invest, innovate and trade"

In its 80-page manifesto, the Conservative and Unionist Party highlights the UK's status as a major trading nation. "The UK is a global exporting superpower and is now the fourth biggest exporter in the world, having overtaken France, the Netherlands, and Japan," it says.

Among its commitments to voters, the party says it will:

• Pursue further trade deals with countries such as Israel and Switzerland, complete free trade agreements with India and with the Gulf Cooperation Council, and look to agree a free trade pact with the US.
• Maintain close ties in the Indo-Pacific following the UK's accession to CPTPP, bolster the Hiroshima Accord with Japan and expand trade and security ties with South Korea, Indonesia, Vietnam and Singapore.
• Seek to strengthen the Commonwealth, enhancing the benefits of membership and strengthening intra-Commonwealth trade.
• Use Brexit freedoms to deliver regulatory reform, including the repeal or reform of over half the entire stock of EU law by July 2026.
• Ensure UK farming is at the heart of UK trade and continue to support UK agri-food and drink attachés in UK embassies abroad, pioneering new markets and new opportunities for the UK’s domestic food and drink industry.

The political party also underscores the importance of SMEs, calling them "the lifeblood of our economy." It commits to:

• Improve access to finance for SMEs including through the expansion of Open Finance and exploring the creation of Regional Mutual Banks.
• Ensure that Basel III capital requirements do not inhibit lending to SMEs.
• Retain key tax incentives that encourage small businesses to grow, including the Enterprise Investment Scheme, Seed Enterprise Investment Scheme, Venture Capital Trusts, and Business Asset Disposal Relief.
• Work with the British Business Bank and private sector fund managers to secure a £250mn Invest in Women Fund to support female entrepreneurs.
• Take more companies out of the scope of burdensome reporting requirements, including lifting the employee threshold allowing more companies to be considered medium-sized.
• Work with public sector organisations and companies benefitting from government contracts to ensure that procurement opportunities are focused on SMEs in their local economies.

"Flourishing international business is a vital part of our plan for growth", says Labour

In its manifesto, the Labour Party also emphasises the UK's position as a "proud trading nation", adding that "openness to trade allows our firms to grow and delivers greater choice and value for consumers".

Among its commitments on trade, Labour says it will:

• Publish a trade strategy "and use every lever available" to get UK business the access it needs to international markets.
• As well as striking new free trade agreements, Labour will seek to negotiate standalone sector deals, such as digital, or mutual recognition agreements, to promote services exports.
• Lead international discussions to modernise trade rules and agreements to promote deeper trade and cooperation including through the World Trade Organization and the CPTPP.
• Improve the UK's trade and investment relationship with the EU. While there will be no return to the Single Market, Customs Union or freedom of movement, it will work to improve the current trade and investment relationship by tearing down barriers, including seeking to negotiate a veterinary agreement to prevent unnecessary border checks, and securing a mutual recognition agreement for professional qualifications to help open up markets for UK service exporters.
• Seek a new strategic partnership with India, including a free trade agreement, deepen cooperation with partners across the Gulf on regional security, energy and trade and investment, and deliver a new approach to Africa to foster opportunities for mutual long-term benefit.

For businesses, Labour pledges to introduce a new industrial strategy, and work in partnership with industry to "seize opportunities and remove barriers to growth" with the establishment of an Industrial Strategy Council. The political party says it recognises small firms face unique challenges and, among pledges to voters, it says it will:

• Improve guidance and remove barriers to exporting for small businesses.
• Reform the British Business Bank, including a stronger mandate to support growth in the regions and nations, to make it easier for SMEs to access capital.
• Reform procurement rules to give SMEs greater access to government contracts.
• Work with industry to ensure start-ups have the access to finance they need to grow.