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Welcome to the UK Trade Policy Observatory

Following the decision to leave the EU, the UK needs to reconfigure its trade policy, successfully navigating a path through a new international trade landscape. The UK Trade Policy Observatory aims to ensure that new trade policies are constructed in a manner that benefits all.

For over four decades, the EU has handled most elements of international trade policy on Britain’s behalf. Brexit changes all that and there is now an urgent need to debate and define the UK’s place in the international trading system and then to negotiate it with our partners. This requires expert analysis, commentary and inputs from people experienced in trade policy formation and practice.

The UK Trade Policy observatory (UKTPO), a partnership between the University of Sussex and Chatham House, is an independent expert group that:

1) Initiates, comments on and analyses trade policy proposals for the UK;

2) Trains British policymakers, negotiators and other interested parties through tailored training packages.

Created in June 2016, the UKTPO is committed to engaging with a wide variety of stakeholders to ensure that the UK’s international trading environment is reconstructed in a manner that benefits all in Britain and is fair to Britain, the EU and the world.

Latest Briefing Papers

Find all our Briefing papers

Trade policy animated videos

Our videos help to explain the effects of Brexit.

The UK exports far more services than goods if all the different ways of trading services are considered. For example, some goods derive a substantial share of their value from services inputs such as research and development, logistics, distribution, branding and marketing. This video, produced by the UK Trade Policy Observatory, explains direct and indirect ways of trading services internationally, and looks at the implications for trade policy, particularly trade agreements.

Reducing greenhouse gas emissions is a key element of climate change mitigation strategies. Yet, some countries worry that heavy industry might relocate because their climate regulation makes it too expensive to operate, leading to so-called carbon leakage. This video analyses the EU’s Carbon Border Adjustment Mechanism pros and cons in addressing carbon leakage, and suggests how further cooperation may be achieved to ensure climate change policy is effective.

Global supply chains have become increasingly complex over the past 50 years, leaving companies exposed to a series of risks, no better illustrated than by the shortage of Personal Protective Equipment and medicines during the COVID-19 pandemic. This video puts forward suggestions for companies on how to manage persistent shocks through diversification, end-to-end supply chain visibility and targeted government policies.

Gains from trade (part 2) looks at why trade results in winners and losers. Specialisation and the competition it creates in and between firms will mean some firms benefit whilst others struggle to adapt and / or compete. These firms may be forced to cut jobs or even close down and this, in turn, impacts on the workers and regions where those firms are located. But trade is only one factor that leads to winners and losers. Technology, for example, has had a significant impact. We show that various policies can help to mitigate the negative effects of trade on workers and regions and how these can be better than protectionism.

More trade explainers are available on our animations page:

• Free ports fact-checked
• Brexit: Where does it hurt?
• Rolling over the EU’s Free Trade Agreements
• The Single Market
• Customs Union
• UK trade with the EU

Charlotte Humma November 25th, 2016

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