Can the new trade strategy make SME exporting great again?

In good news for ecommerce businesses, the UK government has just launched its first post-Brexit Trade Strategy.

Promising £5bn in new export opportunities, stronger protections for small businesses, and new finance options, the strategy is a commitment to faster, more practical deals amid the volatile trade climate.

Highlights include a new Small Export Builder, which aims to give small sellers better access to export protection insurance, and offer improvements to help overseas buyers order from UK suppliers.

For online sellers, this could mean easier and cheaper access to global markets, removing obstacles to international expansion.

What is the UK’s new Trade Strategy?

Last Thursday, the government announced its first Trade Strategy since Brexit, forming a key part of its broader Plan for Change to drive economic growth.

The strategy pledges £5bn to position the UK as “the most connected nation in the world,” with a focus on making global markets more accessible for retailers.

A central feature of the strategy is the Small Export Builder, an initiative designed to support smaller firms in exporting goods internationally by increasing access to export insurance. Since Brexit, an estimated 20,000 SMEs have stopped trading with the EU due to mounting red tape, highlighting the need for more support for small businesses.

Under the scheme, small businesses will automatically qualify for UK Export Finance (UKEF) multi-contract insurance policies, starting with a credit limit of up to £25,000.

The system also rewards reliable trading relationships. As international buyers pay invoices on time, that credit limit will increase by 50% increments, up to a maximum of £100,000.

These changes represent a positive step towards minimising the risks and complexities of exporting for smaller firms, which have often lacked access to the same financial tools and protections that larger businesses have.

Why does it matter to online sellers?

The new Trade Strategy comes at a time when global trade has become increasingly unstable, with SMEs feeling left behind by previous trade policy.

Trump’s trade war only made life more difficult for international sellers. But things are looking up for UK exporters, with the UK achieving slashed trade tariffs with the US, on top of securing “the best deal that any country has ever agreed with India”, which is expected to increase bilateral trade by £25.5bn year-on-year.

The government has also announced that it will expand UKEF by £20bn to provide financial support for firms affected by inflated US tariffs. The Growth Guarantee Scheme (GGS) allows hard-hit SMEs to borrow up to £2m to ride out financial disruption.

In a push to promote business investment and technological innovation in the UK, the government also unveiled its latest Industrial Strategy. The strategy lays out measures to increase funding, reduce red tape, and keep energy costs down across eight sectors, including digital and technology, green energy, and financial services.

Regarding the new Trade Strategy, Tina McKenzie, Policy Chair of the Federation of Small Businesses, said, “We welcome the government’s commitment to creating better digital tools, less red tape and putting a stronger focus on practical support beyond just trade deals.

“Small firms have been bogged down by unnecessary rules and costs for far too long, and today’s strategy is the first step to creating a better environment for exporters and importers.”

What should ecommerce SMEs do next?

If you’re looking to insure international transactions or break into new markets, we recommend exploring the Small Export Builder as a means to support your journey.

The new Trade Strategy marks a real shift in how SMEs, especially ecommerce sellers, are supported. With better access to finance, less red tape, and stronger protections in place, SMEs have a roadmap to international growth that addresses historic trade challenges.

After years of turmoil, exporting may once again become a viable option for UK SMEs.