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Posted: Fri 26th Jul 2024
The UK is among 91 countries that has backed new rules aimed at making international trade faster, fairer, cheaper and more secure.
The E-Commerce Joint Initiative at the World Trade Organization (WTO), which follows five years of negotiations, commits participants to the digitalisation of customs documents and processes. This means the need to print many forms and hand them to customs officials will be removed.
Once implemented, signatories will commit to recognising e-documents and e-signatures, as well as putting in place legal safeguards against online fraudsters and misleading claims about products. The rules will also permanently ban customs duties on digital content to help lower costs for businesses.
The government says global adoption of digital customs systems, processes and documents would increase UK GDP by up to £24.2bn in 2023 UK GDP terms.
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."
Emma Jones, founder of Enterprise Nation, said:
"Digitalisation is utterly transforming the way we do business and how we interact with the global economy, so it's reassuring to see WTO regulations evolving to reflect this, and for the UK to be an early adopter.
“We must do more to reignite the UK's appetite to export and ensure that the UK's SMEs have the best conditions possible to flourish on the international stage.
“We know that exporting, whether it be a product or a digital service, is a key driver of productivity and growth. For example, firms that export introduce more innovation and develop more products.
"We must ensure SMEs have all the information, support and skills they need to join the dots and see exporting for what it is - a clear route to growth."
