Cambridge manufacturing and innovation to gain from new UK trade deals

Cambridge’s advanced manufacturing and innovation economy is set for a major uplift following the UK government’s recent trade agreements with India, the United States, and the European Union. These deals, designed to cut tariffs and reduce trade barriers, are expected to bring long-term economic benefits to local businesses and workers in one of the country’s most dynamic regions.

Cambridge, a city renowned for its cutting-edge research and world-class universities, is home to a vibrant manufacturing base that plays a crucial role in the UK’s science and technology economy. The new trade arrangements are poised to support this ecosystem by unlocking new markets and creating growth opportunities across critical sectors.

Strengthening Cambridge’s manufacturing base

With over 51,000 people employed in manufacturing across the wider region, Cambridge-based employers stand to benefit from reduced tariffs on advanced machinery and medical equipment—key exports for firms such as Paragraf, a leader in graphene electronics, and other high-tech manufacturers with a growing international footprint.

These changes will give local manufacturers greater certainty, enhance their global competitiveness, and support job creation at a time when economic stability is a national priority.

“Trade policy has the power to unlock growth in places like Cambridge where innovation meets industry,” a government spokesperson noted. “Lower trade barriers mean more opportunities to scale and more security for workers.”

Opportunities in life sciences and high-tech exports

One of the most direct benefits for Cambridge comes from the UK–India Free Trade Agreement, which removes tariffs on medical devices—a key area of strength for the city’s thriving life sciences sector. This move is expected to catalyse further growth and export potential for companies operating at the intersection of healthcare and technology.

The deal with the US also holds particular promise for Cambridge, laying the groundwork for deeper collaboration in future-facing fields such as quantum computing, biotech, nuclear fusion, and aerospace. With the University of Cambridge and a network of innovative spinouts and scaleups, the city is ideally positioned to lead in these areas.

Backing from the innovation community

Dr Uday Phadke, Executive Chairman of Accelerator India and CEO of the innovation consultancy Triple Chasm Company, welcomed the government’s efforts, calling the trade deals “a significant step forward” for UK science and technology.

“These agreements are powerful enablers of cross-border innovation,” Phadke said. “They expand our commercialisation services across key markets and give us the confidence to invest further in the UK’s innovation ecosystem.”

The sentiment reflects a growing optimism across Cambridge’s innovation community, which sees global trade access as critical to sustaining long-term research, development, and commercial impact.

A national policy with local impact

Speaking at the Council of Nations and Regions, Prime Minister Keir Starmer emphasised that the government’s trade strategy is rooted in real-world outcomes: “We are laying the foundations for economic growth that improves people’s lives. From lower prices and greater consumer choice to more resilient local economies, the benefits will be felt in communities like Cambridge.”

In parallel with the trade agenda, the government is also championing artificial intelligence and emerging technologies to improve public services—an area where Cambridge institutions are already pioneering solutions.

As the UK looks to future-proof its economy, Cambridge’s unique blend of manufacturing excellence and scientific leadership places it at the heart of the country’s global trade ambitions.

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Image credit: Institute for Manufacturing (IfM) - University of Cambridge.

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