Digital trade key to unlocking opportunities of the future

The UK exported over £200 billion worth of digitally delivered services in 2019 and this is set to increase, with investment in global digital transformation rising worldwide following the pandemic.

The government is negotiating groundbreaking digital provisions in new trade deals and leading on tackling protectionism in online trade internationally, to the benefit of UK businesses and consumers. Advancing digital trade could also help boost wages, with employees in the digital sector earning around 50 per cent more than the UK average.

“Digital trade presents huge opportunities for our brilliant UK businesses, that’s why we’re building a global network of next-generation trade deals that drive productivity and boost high-paying jobs and growth in all parts of the UK,” Secretary of State for International Trade, Anne-Marie Trevelyan MP, said.

“By addressing digital protectionism on the global stage and championing a free, open, and competitive digital economy, more UK companies will be able to export their innovative, high-quality services and goods globally.”

The UK is using its free trade agenda to boost digital trade; negotiating modern free trade agreements (FTAs) that include comprehensive digital provisions like those agreed with Japan, Australia, and New Zealand, and digital-focused agreements like the Singapore Digital Economy Agreement.

This report recommends the UK leverage its trade agenda to be at the forefront of the digital revolution by:

• Focusing its digital trade policy around five goals: open digital markets; free and trusted data flows; consumer and business safeguards; digital trading systems; and partnerships to shape global rules, norms, and standards
• Concluding accession to CPTPP and building a pipeline of modern digital FTAs
• Pursuing a groundbreaking Digital Economy Agreement with Singapore
• Pushing for substantial progress in ongoing WTO e-commerce negotiations
• Using its G7 Presidency, and membership of the G20, OECD, and WTO, to advocate an open, inclusive digital economy. *Continuing to promote UK exports globally and showcase the UK as a strong and competitive place to invest and do digital business

Board of Trade adviser and economist, Dr Linda Yueh, said by playing a global role in helping ensure that digital trade is fair as well as free, the UK can do a lot in this area for its economy and its people to make the most of this fast-growing aspect of the 21st-century world economy.