CBI: Beyond protectionism: UK must take lead in new era of global trade competition

As the world grapples with shifting economic tides, the UK stands at a crossroads. Should it retreat behind protective barriers, or should it boldly engage with the world, leveraging its unique strengths to drive growth and innovation? Rain Newton-Smith, CEO of the Confederation of British Industry, firmly believes in the latter. Speaking at the University of Oxford’s Said Business School, she laid out a compelling vision for Britain’s future—one built on confidence, investment, and an unwavering commitment to global trade.?

Newton-Smith’s remarks come fresh from discussions at the World Economic Forum in Davos, where global leaders wrestled with the complexities of trade, economic uncertainty, and geopolitical shifts. With the UK navigating the choppy waters of post-Brexit realignment and intensified global competition, she warned against the siren call of protectionism. Instead, advocating for an open, engaged approach, recognizing the UK’s advantages in AI, financial services, and green technology as key drivers of economic growth.?

A thriving economy in East of England and across the country requires business confidence. She noted the Chancellor’s speech last week was a much-needed down payment on the long-term sustainable growth this country needs. However, she cautioned that good intentions alone are not enough. The warm words of the speech must be followed by real, measurable delivery.?

The challenges facing UK businesses are real. Soaring costs, high taxes, and regulatory burdens have stifled investment. If Britain wants to lead, decisive action is needed to free up capital, encourage hiring, and foster innovation. From fixing business rates to avoiding unintended consequences in the Employment Rights Bill, the UK must foster a policy environment that enables, rather than hinders, growth.?

Trade remains at the heart of Britain’s economic success. As major global powers— the US, EU, and China—jockey for influence, the UK must avoid being drawn into protectionist stances that could undermine its economic future. Engagement is always better than protectionism—or sticking our heads in the sand, emphasizing that no nation can tackle today’s pressing challenges alone, whether they be climate change, ageing populations, or technological disruptions.?

China is a particularly complex but crucial trade partner. While security concerns must be addressed, full decoupling is neither realistic nor desirable. It does not sit with our commitment to free and fair trade. And it does not sit with our need to answer the global challenges of 2025.?

Sustainability also presents a major economic opportunity – it is no longer just a moral imperative. Despite geopolitical turbulence, the climate science remains clear, and the business case for sustainability is stronger than ever.?