Scotland's Vision for Trade: annual report January 2026

Ministerial Foreword

I am pleased to publish this fourth Annual Report, which details the progress we have made in the implementation of Scotland’s Vision for Trade (the Vision) in just over a year since our last report in October 2024. During what has been a particularly turbulent period for global trade, the report demonstrates our continuing commitment to transparency and accountability in international trade policy making, and to our principle-based approach.

As set out below in Part 1 of this report, the past year has seen a number of shocks to the global economy, against a backdrop of wider trends changing the way we trade goods and services globally.

The United States, Scotland’s second largest international trading partner after the EU, has made significant changes to the terms upon which it trades with the rest of the world. Many other countries have also introduced new barriers to trade. New and evolving global conflicts have impacted how and with whom we trade. Alongside this, new technology, digitalisation and the growth of services trade continue to offer new opportunities, challenging us to consider how best to support businesses to maximise those opportunities, while benefitting the people of Scotland.

Scotland has of course not been immune to the headwinds buffeting economies across the globe, and the First Minister’s mission to grow the economy has been at the forefront of our approach to improving the trading environment. In particular, we have taken action to support Scotland’s businesses to be successful globally. That action included influencing the terms of the UK-India Free Trade Agreement (FTA), engaging directly with President Trump in support of Scotch Whisky and collaborating with the UK Government in tackling market access barriers in the EU and other markets for Scottish exports such as pork, crabs & whisky.

We also brought together our aims for both growth and inclusive trade by taking action to reduce the gender export gap in support of women-led businesses.

Many trade levers sit with the UK Government, which published its UK Trade Strategy in June 2025. We have continued to work constructively with the UK Government in furthering our shared trade interests. There are turbulent times ahead on trade globally and I encourage the UK Government to commit to working with Devolved Governments to navigate that turbulence together, ensuring that the UK Trade Strategy delivers for the whole of the UK.

This is also an appropriate moment to reflect on developments over more than just the last year. The Vision was published 5 years ago, in January 2021, when the UK was still in the early stages of developing its independent trade policy outside the EU, and the role of Devolved Governments had yet to be fleshed out. A lot has changed in that time, and Part 2 of this report sets out some of the highlights and challenges from those five years, including the relationships we have built with stakeholders and businesses and how we have used our principle-based approach to navigate difficult issues and trade-offs.

I would like to thank those who have worked alongside us to inform our approach and build a strong foundation, from which to maximise Scotland’s trade opportunities and navigate global economic challenges.

Richard Lochhead MSP,

Minister for Business and Employment

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We improved the trading environment for business

US Market Access

We navigated US tariff changes, assessing impacts, supporting business to mitigate those, influencing the UK-US Economic Prosperity Deal and making the case for priority interests, such as Scotch Whisky.

Global market access

We collaborated with the UK Government to resolve market access barriers globally e.g. in relation to pork, crabs & whisky.

Trade Negotiations

We advocated for Scotland’s interests in all trade negotiations, including influencing the UK-India FTA, concluded in July 2025, which offers significant Scottish food and drink export opportunities.

World Trade Organization

We advanced Scotland’s interests at the WTO, contributing to the UK’s first Trade Policy Review following EU-exit, including on agriculture, fisheries, circular economy, and gender.

Services Trade

We built our evidence base on growth prospects for trade in services in Scotland, commissioning new research.

We took action to support wider benefits from trade

Impacts of Trade

We analysed impacts of new trade deals and US tariffs on Scotland’s people, businesses and the wider economy and used that to influence the UK Government.

Gender Export Gap

We published research on the gender export gap, and worked with delivery partners to support increased women-led exports.

Human Rights

We responded to the situation in Gaza with trade-related measures and worked with Scottish Enterprise to operationalise its enhanced human rights due diligence procedures.

Climate

We engaged with business and stakeholders to help prepare for UK and EU Carbon Border Adjustment Mechanisms.

We responded to new UK trade policy developments

UK Trade Strategy

We set out our priorities for the UK Trade Strategy and pressed the UK Government to deliver it in a way that benefits the whole of the UK.

EU-UK reset

We influenced UK priorities on trade as part of the EU-UK trade reset, including through our suggested approach to a SPS Agreement.