Centre for Inclusive Trade Policy home pageRound 4 2026
Five projects have been awarded funding in the fourth round of the Centre for Inclusive Trade Policy's Innovation Fund.
Tracing risks, driving change: Building inclusive trade in EV value chains
PI: Anabel Marin (University of Sussex), Steven Rolf (Co-Investigator) University of Sussex, Julian Germann (Co-Investigator) University of Sussex, Joseph Bain (Co-Investigator) Kings College London, Gabriel Palazzo (Co-Investigator) University of Alcalá de Henares
Electric Vehicle (EV) supply chains are expanding rapidly, yet the social and political costs of the extraction of the minerals that underpin them (lithium, nickel, cobalt, copper, rare earths) remain poorly recognised in corporate accounting and trade policy. While the EU’s world-first battery passport promotes transparency, delays and exemptions in due diligence leave mining harms unaddressed.
This project combines firm-level tracing of EU carmakers’ supply chains from EV producers to upstream mining sites and a global dataset of socio-environmental conflict and cooperation in mining. Together, these will yield the first systematic, company-linked map of where EU EV value chains intersect with local contestation, governance gaps, and distributional risks.
_ _ _ _ _ _ _ ________________________________________________________________________ _ _ _ _ _ _ _ _
Outward FDI and export margins: Impact of Brexit trade policy uncertainty on UK firms
PI: Mustapha Douch (University of Edinburgh), Yupei Wu (Co-Investigator) University of Edinburgh, Bo Gao (Co-Investigator) Loughborough University
The UK's exit from the EU has prompted significant shifts in economic strategies, particularly concerning outward Foreign Direct Investment (FDI) by UK firms. This study examines the efficacy of "tariff-jumping" FDI into EU countries as a strategic response to bypass new trade barriers and maintain market access post-Brexit. The project aims to assess whether these investments reflect defensive manoeuvres or proactive strategies that enhance economic ties with the EU, focusing on their impact on export likelihood, trade flows, and market shares.
The research will evaluate the differential effects of these investments in service and manufacturing sectors, exploring the mechanisms through which outward FDI influences trade behaviour, for the period 2012-2023. The analysis seeks to determine if outward FDI, especially through distinct channels like greenfield investments and mergers, has effectively mitigated the negative impacts of Brexit and supported the integration of UK businesses into the global economy, offering insights that could shape future policy and business strategies.
_ _ _ _ _ _ _ ________________________________________________________________________ _ _ _ _ _ _ _ _
Economic security and digital trade: Rethinking UK agreements with Japan, Korea, and Taiwan
PI: Sohyun Zoe Lee (Queens University Belfast), I-Ju Chen (Co-Investigator) University of Exeter
Amid intensifying geopolitical rivalry, the UK has been seeking to reposition itself in trade by engaging with the Indo-Pacific, home to some of the most dynamic and rapidly growing economies. Yet the UK’s initiatives with Japan, South Korea, and Taiwan have not been fully assessed for alignment with these objectives, despite their relevance to strategic concerns in high-tech sectors such as semiconductors and artificial intelligence.
This project examines how the UK’s trade arrangements with these partners are evolving—or could evolve—to meet emerging priorities in digital trade and economic security. It also compares the UK’s approach with Japan’s, South Korea’s, and Taiwan’s digital trade agreements to identify and provide relevant points of reference for how advanced economies integrate digital trade and economic security.
_ _ _ _ _ _ _ ________________________________________________________________________ _ _ _ _ _ _ _ _
The greening of UK trade: Firm-level transactions and supply chain integration
PI: Yangjun Han (University of Birmingham), Wanyu Chung (Co-Investigator) University of Birmingham, Robert Elliott (Co-Investigator) University of Birmingham
The rapid global shift towards low-carbon growth and the UK’s legally binding net zero target has placed green trade – defined as the exchange of environmentally beneficial goods – at the centre of trade and industrial policy. Yet systematic evidence on how the UK engages in green trade, and how firms transition toward it, remains limited.
This project will map the evolution of green trade, since 2016, across sectors, destinations, and time. It will examine whether firms integrate across green supply chains or specialise at one end, and investigate how firms transition into green trade, identifying key drivers such as market structure, industry concentration, and firm characteristics. The findings will inform policies to support firms’ green transition, strengthen sustainable supply chains, and enhance the UK’s competitiveness in the global low-carbon economy.
_ _ _ _ _ _ _ ________________________________________________________________________ _ _ _ _ _ _ _ _
Firm-level determinants of compliance with trade sanctions against Russia
PI: Ziho Park (University of Sussex)
To address the security threat of Russia’s invasion of Ukraine, democratic nations such as the UK aimed to secure global compliance with sanctions against Russia. Yet, there is evidence of non-compliance: exports of sanctioned products to countries bordering Russia, such as Kazakhstan, have surged, and firms in developing countries are trading with Russia more than ever.
This project will investigate which types of firms and shippers worldwide are exporting sanctioned products to Russia or importing oil from Russia after the invasion, and whether are firms and shippers may be using Kazakhstan to facilitate indirect trade with Russia. The findings will help to inform which policy measures are most effective and which firms are non-compliant with sanctions against Russia.