The UK, alongside 90 other countries, has signed the Agreement on Electronic Commerce at the World Trade Organisation (WTO). This agreement, five years in the making, aims to make global trade faster, fairer, cheaper, and more secure.
As part of this agreement, signatories will commit to the digitalisation of customs documents and processes, as well as recognise e-signatures and e-documents. This change is expected to significantly reduce administrative costs and delays, as well as reduce the burden of international posting and shipping.
Additionally, the agreement will permanently ban customs duties on digital content, reducing costs for UK businesses and consumers. Legal safeguards against online fraud and misleading product claims will be established, ensuring a safer digital marketplace for consumers.
A global adoption of digital customs is anticipated to boost the UK economy and increase UK GDP by up to £24.2 billion in 2023 UK GDP terms. Business and Trade Secretary Jonathan Reynolds expressed pride in the UK’s role in securing this first-ever global digital trade agreement. "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,” he said.
This Agreement not only delivers new growth opportunities for the UK, but recognises the importance of supporting developing and least-developing countries to ensure growth and prosperity for all. WTO partners will now work toward incorporating the Agreement into the WTO legal framework.
Curious as to what these changes mean for your business? GM Chamber offers comprehensive support and guidance to help you understand and comply with evolving trade regulations. Contact us today for a complimentary consultation with our Trade & Customs Advisors. Email us at international@gmchamber.co.uk, or call 0161 393 4314.
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Source: HMRC
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