From policy to prospects: How the UK's new Trade Strategy shapes my generation's future?

After reading the comprehensive analysis of the UK’s Trade Strategy by the CITP, I found myself fascinated with the breakdown and review of the projected Strategy and the themes involved. As a student currently studying economics and politics, it felt incredibly relevant to my generation’s future livelihood. My concerns for the future of our economy and geopolitics most significantly lie within the housing market, the state of the climate and technology. While the strategy sets out clear intentions and answers many questions on how the government wants the country to move forward in terms of trade, it still leaves many unanswered questions.

In theory, this Strategy seems optimistic for young people like me, with its focus on digital trade and the services sectors such as finance and technology. This has the potential to create opportunities more accessible than before, with expansion and development of these sectors, supported by the government, helping people from backgrounds like mine break into higher-paying, future-proof careers. This analysis of how we as a country are deciding to move forward in terms of trade can help young people feel more secure about the job market when it comes to our turn. It has done so by allowing us to pursue sectors we know will be booming by the time we reach the job market, as well as improving access to apprenticeships for accessibility to those from varying socioeconomic backgrounds.

Turning to a more international overview, the Trade Strategy also mentioned how international trade partnerships could be improved through changes to our approach. The UK Government is aiming for a ‘no containment, no alignment’ approach to international trade relationships, such as with China, recognising their strong manufacturing industry, and supporting geopolitical relationships. Furthermore, it is significant that the Government has recognised the importance of expanding international relationships with countries such as Brazil, that potentially have a great amount of demand for our goods and services. This is especially important at the current time of political uncertainty across the world, as it ensures we have access to necessary goods at times of conflict and provides stability in supply and demand.

Turning to the terminology in the executive summary of the Government’s Trade Strategy, which mentioned how “pragmatic patriotism will be the compass by which we will navigate today’s turbulent storms,” gave me pause. As a young woman from a low-middle-income background and of mixed heritage, this can be framed as exclusionary to some degree.

In the section referring to international partnerships, the Strategy mentions a focus on ‘mini deals’ to develop a smarter ‘set of trade tools’ to excel economically as a nation. These mini deals will be much more sector-specific, which I believe can make a real change in trade partnerships and policies with other countries, particularly with regulations and transportation across borders. These could create numerous opportunities, increasing job security massively for young people like me and potentially opening up countries in which we can work. However, there are some drawbacks I identified from these mini deals, most notably that they are unlikely to achieve the large-scale economic impact that governments usually strive for.

The services trade in the UK has proven time and time again to be, according to the government, “more resilient to past turbulences than goods trade” which is why it is beneficial that the government focuses more on services. The manufacturing sector is not where the UK is heading, while services trade, particularly financial and technology, is where the future economy has the chance to boom with the right decision-making behind it. The government’s acknowledgement of this gives young people like me time to put our energy into learning the skills that will benefit our future economy, as well as ourselves. This heavily correlates with the surge in digital trade - shown in 2020 when this sector grew 3 times faster than other exports, according to the OECD - that the UK is undergoing, particularly showcased by the government’s commitment to develop digital infrastructure. Although sectors such as finance and technology still have gender representation issues, I think a shift in focus towards them in the future has the potential to create more diversity in the workplace, which is particularly important to me as a young woman.

It is also important to recognise the emphasis on a sustainable transition for trade in the future, focusing on the implementation of clean energy sources for transportation and other stages of trade, such as the introduction of electric vehicles to transport goods and services country-wide. Climate change is an important issue within our society, with 59% of 16-25 year olds ‘very/extremely worried’ about climate change, which is why it is significant that the government recognises this within the Trade Strategy. My generation will be the one to inherit the current climate change crisis, so it is vital that we aim to reduce its effects, and any trade policy that does not improve sustainability feels thoughtless. As the analysis discusses, “there can be no plan for economic stability of sustainable growth that does not include a credible plan for net zero”, reinforcing my belief that climate must be prioritised in the coming years. I think the government’s promise to provide £10bn of clean growth finance shows the UK as a country pioneering sustainable growth, with the help of electric vehicles and ultra-low emissions zones. This £10bn is a step in the right direction, but is not nearly enough to create large-scale, long-lasting change to our country’s economy, meaning further action must be taken.

This Trade Strategy, although it won’t solve all the problems our society currently faces in terms of trade, is significant in the way that it’s the first of its kind and a step in the right direction for the UK. There are no huge promises about the UK becoming a global superpower in trade, but there are pragmatic approaches and plans that could generate growth and relationships for our future. As a young person, this provides me with confidence that the UK is moving forward with plans for services, green finance, energy and digital trade sector growth, a huge asset to the job field of the future. All in all, I believe this Strategy will create opportunities we did not have before, opportunities that the next generation can seize now that we know which sectors will hold a focus once we take the wheel.