UK Joins First WTO Global Digital Trade Agreement

After five years of negotiations, the UK and 90 other countries have finalised the details of a set of new rules designed to make global trade faster, fairer, cheaper and more secure.

Global digital trade (all trade that is digitally-ordered or delivered) was estimated by the OECD to be worth around $5 trillion / £4 trillion in 2020, significantly more in 2024 and going forward. The OECD have defined this as all trade that is digitally-ordered or delivered.

No date had been given for the agreement coming into force. However, the E-Commerce Joint Initiative, officially called the 'Agreement on Electronic Commerce', will permanently ban customs duties on digital content, lowering costs for businesses and helping protect consumers from online fraud, once it is enacted. It may enable growth of the UK and other participant nation's economies, by boosting global digital trade.

Once implemented, all participants will commit to the digitalisation of customs documents and processes, in many cases ending the need to print forms and manually hand them over at customs. They 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. Signatories to the agreement will also put in place legal safeguards against online fraudsters and misleading claims about products.

Business and Trade Secretary Jonathan Reynolds said: 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.

Chris Southworth, Secretary General, International Chambers of Commerce UK added: Businesses and economies thrive when there is one common set of rules. The E-Commerce Agreement is a major breakthrough and an excellent reminder of the power of international collaboration. It creates the environment we need to drive innovation as we transition away from archaic paper-based processes and into the modern world of data and technology. It is an opportunity to accelerate efforts to digitalise our borders and global supply chains, and help to remove unnecessary friction and costs that prevent SMEs from trading. This is good news for business, consumers and the economy.

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