Charting a new path towards ‘trusted trade': A strategic vision for the UK

By Marco Forgione MCIEx

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The Chartered Institute of Export & International Trade has long championed the principles of professional international trade. Since it was established by pioneering industrialists in 1935, the Chartered Institute has played a critical role in promoting effective trade practices and addressing the challenges of global commerce.

The issues which motivated the Institute’s founders in the inter-war years of the last century resonate with the challenges faced by governments and businesses today. With a new government in the UK, after a politically turbulent few years and at a time when the UK economy faces renewed pressures, the importance of fostering reliable trade systems and trusted partnerships cannot be overstated.

The shortcomings of the traditional free trade model

Free trade, in theory, promises mutual prosperity through the open exchange of goods and services across borders. However, in practice, it has often disproportionately favoured powerful economies and large corporations, while leaving smaller nations and vulnerable communities exposed to exploitation and economic dependency.

The World Trade Organization (WTO) – the custodian of global trade rules since 1995 (when it was formed after the completion of the Uruguay round of multilateral trade negotiations within the framework of the General Agreement on Tariffs and Trade (GATT)) – has struggled to address these imbalances. Disputes over agricultural subsidies, digital trade, and other issues reflect how the interests of wealthier nations frequently overshadow the concerns of developing countries.?

Moreover, the ‘free trade’ model that has been applied over recent decades has often widened inequalities. Marginalised communities—whether within developing nations or wealthier countries—are frequently excluded from the benefits of global trade. Women, indigenous groups, small-scale farmers and micro-businesses face systemic barriers which prevent them from accessing global markets and resources, leaving them trapped in cycles of poverty and underdevelopment.

The WTO’s current challenges are symptomatic of the deeper flaws within the current free trade model – a framework that prioritises market access and profit over fairness, sustainability and inclusivity. It is clear that a new approach is needed—one that places ethical principles and equitable development at the heart of international commerce.

The modern context of ‘trusted trade’

Today’s global landscape is marked by heightened geopolitical tensions, shifting supply chains and increasing uncertainty. While we may not be recovering from a world war, as the UK was in the 1940s, we are navigating a world where trust is both fragile and crucial. Supply chain disruptions, proxy conflicts and economic volatility are frequent, highlighting the urgent need for a robust and trusted trade environment.

For the UK, trusted trade systems that prioritise reliability, transparency and resilience are essential. As the UK redefines its position on the global stage, the Chartered Institute urges the government to take the lead in shaping a strategy that strengthens the trustworthiness of international trade. This strategy must focus on creating resilient, robust supply chains, forging dependable partnerships and establishing an industrial strategy that integrates comprehensive import and export plans.

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The vision for trusted trade

Trusted trade offers a more balanced and ethical alternative. Rather than relying solely on open markets and deregulation, trusted trade emphasises qualified partnerships grounded in mutual respect, transparency and shared goals. It is a model designed to ensure that all participants in the global economy—regardless of their size or power—can benefit equitably from trade.

1. Trust and transparency

Trusted trade builds relationships based on long-term trust, where all parties are committed to openness and integrity. This involves transparent negotiations, consistent adherence to agreements and a shared responsibility for overcoming challenges together. In contrast to the purely transactional nature of free trade, trusted trade emphasises ethical conduct and cooperation.

2. Equality and inclusivity

At its core, trusted trade seeks to create opportunities for disadvantaged and marginalised communities. This is a departure from traditional trade models that have often sidelined these groups. Trusted trade frameworks actively work to lower barriers for small businesses, local cooperatives and underserved communities, providing them with resources and support systems to access global markets. By integrating these communities into global supply chains, trusted trade ensures that the benefits of international commerce are more widely distributed.

3. Mutual benefit and integrity

Trusted trade prioritises partnerships that deliver equitable gains for all participants. Instead of focusing solely on maximising profits, it promotes fair terms that prevent exploitation and foster shared prosperity. Ethical standards – such as fair wages, sustainable practices and respect for local cultures – are embedded into trade agreements and policies, to ensure that trade contributes to broader social and community progress.

Key areas for government action

To build a future based on trusted trade, the Chartered Institute outlines three core areas where government action is crucial: regulatory reform, strengthened international relationships and resilient supply chains.

1. Regulatory reform for a trusted trade environment

The UK’s border infrastructure needs urgent modernisation. Effective border management should no longer treat trade and immigration as separate issues. A unified approach that brings together all relevant processes is key.

The introduction of a single agency overseeing border operations, under the auspices of a dedicated minister for the border, would enhance accountability and operational efficiency. Additionally, integrating technological solutions and digital-first processes will improve cross-border trade by streamlining procedures, reducing delays and improving accountability. Such an approach will help establish the border and customs as engines supporting growth.

Regulatory frameworks must evolve to support environmental and social objectives. The carbon border adjustment mechanism (CBAM) and other environmental, social and governance (ESG) standards are becoming essential to global trade. Establishing a trustworthy system for monitoring and reporting ESG compliance is vital to ensuring UK businesses remain competitive while contributing to global sustainability goals.

A key aspect of ensuring that CBAM and similar initiatives align with the principles of trusted trade is inclusivity. MSMEs and other marginalised groups often face difficulties in meeting new regulatory requirements. Active support—such as financial aid, capacity-building programs and simplified compliance processes—must be prioritised to prevent these groups from being disproportionately affected. Trusted trade is not only about sustainability and integrity; it also seeks to ensure equitable access and opportunities across all sectors of society.

Cross-border trade processes need to reflect and respond to the changing nature of trade, to encompass the rapid growth in trade in services. Existing trade in goods systems are under pressure to respond to new digital processes and procedures, the ongoing ‘servitisation’ of manufacturing, integration of diverse component and commodity sources into products, and the resultant complex supply chains which support these systems.

2. Rebuilding relationships with global trading partners

Global geopolitics are reshaping trade relationships. The UK’s role in this shifting landscape requires careful recalibration. Recent survey data suggests that the UK’s reputation has declined in some of its key trading markets, notably the US and Canada. Rebuilding trust and strengthening these relationships is vital.

Equally significant is the UK’s relationship with the European Union. As the EU-UK Trade and Cooperation Agreement (TCA) review period approaches, the UK has a unique opportunity to reassess and realign its trade relations with the EU. Listening to businesses and addressing barriers to trade will be critical in this process. The Chartered Institute, with its deep connections to businesses, is well-positioned to provide insights into the impact of the TCA and suggestions on ways in which improvements can be made.

The UK’s recent accession to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) is a testament to the importance of establishing trusted trade partnerships with rapidly emerging global economies. The agreement not only opens new markets but also emphasises inclusive trade practices. Provisions within CPTPP aim to simplify trade processes for MSMEs, ensuring that smaller businesses and disadvantaged communities are not left behind. For the UK, trusted trade within this framework means leveraging these opportunities to create equitable benefits for all, reinforcing the need for fairness and mutual growth in trade partnerships.

3. Enhancing supply chain resilience

Global supply chains face significant risks from political instability, environmental disruptions and technological challenges. Recent events, such as the instability in the Red Sea and the ongoing environmental issues affecting key transit points like the Panama Canal, underscore the need for resilient supply chains. Critical chokepoints, including the Strait of Malacca and the Suez Canal, remain vulnerable to geopolitical disruptions that could have severe implications for global trade.

To mitigate these risks, the UK must prioritise diversified and resilient supply chains. The government’s collaboration with expert groups, such as the Critical Imports Council, will be essential for effective crisis planning and horizon scanning. Expanding diplomatic engagement through business-focused embassies and forming relevant trade agreements will also contribute to the development of robust supply chains.

The global response to the semiconductor shortage during the Covid-19 pandemic is a clear example of how trusted trade principles can enhance supply chain resilience. Initiatives like the US CHIPS Act and the European Chips Act are designed to diversify production and reduce dependency on single sources. However, it is essential that these efforts are inclusive and accessible to MSMEs and other disadvantaged groups. Trusted trade means ensuring that smaller players have the resources, knowledge and support to participate fully in global supply chains, contributing to a more stable and equitable trading environment.

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The strategic importance of trusted trade

The UK’s history as a global trading nation underscores the centrality of trade to its economic health. Businesses that engage in international trade are more resilient, more sustainable, more innovative, employ more people and are more profitable.

According to research by the Social Market Foundation, boosting e-commerce trade could add billions to the UK economy, highlighting the potential of expanding cross-border trade opportunities. The Chartered Institute chairs the ?E-Commerce Trade Commission which is actively working to unlock this potential. Similar initiatives are needed to drive further growth.

However, the path forward requires a cultural shift. Businesses must be encouraged and supported to embrace international opportunities as a natural part of their growth strategy. Financial incentives and targeted government support can play a significant role in helping smaller enterprises expand overseas.

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A call to action for the UK government

As the UK navigates this new chapter, it is clear that economic growth cannot be achieved in isolation. Addressing societal challenges, whether economic exclusion, environmental sustainability, access to healthcare or educational inequality, will require trusted trading relationships and the development of secure trade routes. If we are to affect long-term change we cannot focus just on short-term economic benefit. The Chartered Institute stands ready to advise and support the government, offering its expertise to create the conditions for sustainable, trusted cross-border trade.

The challenges ahead are significant, but so too are the opportunities. By implementing a comprehensive strategy centred on trusted trade, the UK can chart a path to renewed prosperity and global leadership in an era of increasing uncertainty. The priority for this generation of policy makers and business leaders must be to create a legacy of trust.