After five years of negotiations at the World Trade Organization (WTO), the UK and 90 other countries have reached a groundbreaking global digital trade agreement. The deal, known as the E-Commerce Agreement, aims to facilitate cross-border electronic transactions and reduce barriers to digital trade.
This agreement commits countries to digitize their customs processes and systems, eliminating the need for physical documents at border entry points. Signatories have also agreed to recognize e-documents and e-signatures, saving time and costs for businesses by removing the requirement for physical signatures and document exchanges.
The agreement includes provisions to enhance consumer protection online, enhance international collaboration on cybersecurity risks, and provide support to developing countries. It will also ban customs duties on digital content and electronic transmissions among signatories.
The UK government estimates that digital trading systems could boost the UK’s GDP by £2.7bn to £24.2bn. Business and trade secretary Jonathan Reynolds praised the agreement for cutting costs and promoting economic growth.
The agreement is seen as a major breakthrough for international digital trade by Chris Southworth, secretary general at ICC UK. It will help in driving innovation and transitioning away from outdated paper-based processes.
WTO partners will now work on integrating the agreement into the WTO legal framework, with countries looking to ratify it. The European Commission’s Valdis Dombrovskis emphasized the importance of the agreement in developing global digital trade, benefiting businesses, consumers, and helping bridge the digital divide.
