The UK and 90 other countries have negotiated a set of new rules designed to make global trade faster, fairer, cheaper and more secure.
The E-Commerce Joint Initiative, finalised at the World Trade Organization (WTO), is designed to expand the economy by boosting global digital trade. 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.
According to the Department for Business and Trade (DBT), 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.
Global adoption of digital customs systems, processes and documents would, the DBT suggests, increase UK GDP by up to £24.2 billion in 2023 UK GDP terms.
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 and hand them over at customs.
The signatories to the 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.
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.”
Attention now turns to working with WTO partners to incorporate the agreement into the WTO legal framework, he explained. Once incorporated, UK ratification will take place.
A report on the Benefits of the Digitalisation of Trade Processes and Cross Border Barriers to their Adoption can be found HERE.
