New Digital Trade Deal A Big Win

UK joins the first global digital trade agreement negotiated under the World Trade Organization.

• The UK and 90 other countries have negotiated a set of new rules designed to make global trade faster, fairer, cheaper and more secure
• Once in force the agreement will permanently ban customs duties on digital content, lower costs for UK businesses and help protect UK consumers from online fraud
• Global adoption of digital customs systems, processes and documents could significantly grow the UK economy

On 26th July, the UK joined a groundbreaking agreement which is designed to grow the economy by boosting global digital trade.  

After five years of negotiations, the UK and 90 other countries have finalised the E-Commerce Joint Initiative at the World Trade Organization (WTO), which will make trade faster, cheaper, fairer and more secure. It will help British businesses, workers and consumers seize the opportunities of global digital trade, which is estimated by the OECD to be worth around £4 trillion and growing.  

Once implemented, the agreement will commit all participants to the digitalisation of customs documents and processes. This will in many cases end the need to print forms off and hand them over at customs – a slow, expensive and old-fashioned way of working. 

The signatories to this agreement will also commit to recognising e-documents and e-signatures, reducing the need for businesses to physically sign contracts and post them around the world. 

Global adoption of digital customs systems, processes and documents would increase UK GDP by up to £24.2 billion in 2023 UK GDP terms. Even partial adoption could represent a significant boost to UK GDP. 

It also commits signatories to putting in place legal safeguards against online fraudsters and misleading claims about products.

Business and Trade Secretary Jonathan Reynolds said:

"We are proud to play our part in securing the first ever global digital trade agreement, cutting costs for business and delivering on this government’s ambition to deliver economic growth.

Britain is back and proudly playing her role as an outward looking trading nation. Global digital trade is already estimated by the OECD to be worth around £4 trillion and counting but no common set of global rules exist. This is a huge step forward in correcting that and ensuring British businesses feel the benefit."

Head of Trade Policy at the British Chambers of Commerce William Bain said:

“This deal between the UK and 90 of its global trading partners is good news for business. We are expecting global trade to show good growth this year, but to sustain that we need initiatives like this. 

“It will boost digitalisation of trade documents across the globe and means British companies sending out electronic services, such as reports by email, won’t face customs charges or related costs.  

“Our Chamber Network is involved in making millions of pounds worth of trade happen every day and we hope government will partner with business on implementing this initiative. 

“To get the most out of this opportunity we need to ensure our borders are digital, alongside simpler customs and electronic documentation processes.  

“We also need the UK, and other signatories to this initiative, to step up efforts to get more WTO nations to sign this agreement.  

“Extending the benefits of digital trade globally is a win-win for developed and developing countries alike. This is a highly positive announcement showing how important boosting levels of trade will be to the UK’s economic growth.” 

More details on the  government announcement can be found here.