The UK has entered into a pioneering agreement aimed at stimulating economic growth through enhanced global digital trade. After five years of negotiations, the UK, alongside 90 other countries, has finalised the E-Commerce Joint Initiative at the World Trade Organization (WTO). This agreement promises to make trade faster, cheaper, fairer, and more secure, offering substantial benefits to British businesses, workers, and consumers.
The Organisation for Economic Co-operation and Development (OECD) estimates the global digital trade market to be worth approximately £4 trillion (approximately $5.14 trillion) and growing. The E-Commerce Joint Initiative is poised to help the UK seize these opportunities by committing all participants to the digitalisation of customs documents and processes. This transformation will often eliminate the need for printing forms and presenting them at customs, a process that has long been considered slow, costly, and outdated, the UK government said in a press release.
Furthermore, the agreement obliges signatories to recognise e-documents and e-signatures, reducing the necessity for businesses to physically sign and mail contracts globally. This shift to digital customs systems, processes, and documents could potentially boost the UK’s GDP by up to £24.2 billion, based on 2023 UK GDP terms. Even partial adoption of these digital practices could result in a significant economic uplift.
The agreement also includes commitments to implement legal safeguards against online fraud and misleading product claims, enhancing the security and fairness of digital trade.
The focus now shifts to collaboration with WTO partners to incorporate this agreement into the WTO legal framework. Following this incorporation, the UK will proceed with the ratification process.
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.”
Chris Southworth, secretary general, International Chambers of Commerce UK, said: “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.”
The UK, with 90 other countries, finalised the E-Commerce Joint Initiative at the WTO, aiming to enhance global digital trade.
This agreement, worth an estimated £4 trillion (~$5.14 trillion), will digitalise customs processes, recognise e-documents and e-signatures, and boost UK GDP by up to £24.2 billion.
It includes safeguards against online fraud.
Fibre2Fashion News Desk (DP)
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