Singapore and Britain in digital trade talks
The UK has held trade talks for a digital trade agreement that could remove barriers to trade and enable UK exporters to expand into high-tech markets around the world. Britain’s International trade secretary, Liz Truss, has been in virtual negotiations with Singapore for a Digital Economy Agreement (DEA).
The UK is the second largest services exporter in the world, with remotely delivered services exports worth £207bn in 2019.
That year, Britain delivered £3.2bn of digitally delivered services to Singapore. But there is significant cross-border red tape standing in the way of digital trade.
The aim of the DEA is to make it easier for companies to trade through the use of digital technology. It is also part of the government’s wider plan to establish the UK as a global leader in industries like fintech and cybersecurity.
Negotiations will focus on opening digital markets for exporters; ensuring cross-border data sharing; promoting digital trading systems like e-signatures and e-contracts that will streamline the export process; protecting consumer rights and IPS (Intrusion Prevention System) and cybersecurity.
Truss said: “The UK will be the first European country to ever negotiate a Digital Economy Agreement, which shows what we can do as a sovereign trading nation.”
She added: “Our ambition is to make the UK a global hub for services and digital trade, by striking a series of advanced, high-standards agreements with leading nations across the world that drive productivity, jobs, and growth across the UK.”
Chief executive officer, Miles Celic, at Thecityuk, underlined the need for new trade agreements that enable the flow of data across borders, and said that digital restrictions are one of the fastest-growing barriers to trade.
“Over 50pc of trade in services is facilitated by digital exchange, but restrictions on digital trade doubled in the decade leading up to 2019,” Celic said.
“The UK should strive to set clear ground rules for digital trade and build an open and robust framework for future digital trade and technological cooperation. Such a framework can then become a template for other key markets, aiding the free flow of data and preventing unnecessary market fragmentation,” he added.
Meanwhile, Foreign Minister, Dominic Raab had been in Hanoi, Vietnam, for trade talks about joining a free trade area in the Asia-pacific region – The Comprehensive and Progressive Agreement for Trans-pacific Partnership (CPTPP) — which would grant the UK access to some of the biggest economies in the world.
CPTPP consists of 11 nations including Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam.
The trade area covers a market of around 500 million people and would see reduced tariffs on exports like cars and whiskey, while helping British farmers sell beef and lamb to CPTPP countries, the government said.
According to reports, trade secretary Liz Truss said a CPTPP membership would be a “glittering post-brexit prize” for the UK.
“This part of the world is where Britain’s greatest opportunities lie. We left the EU with the promise of deepening links with old allies and fastgrowing consumer markets beyond Europe, and joining the high-standards trans-pacific Partnership is an important part of that vision.”
City of London Corporation policy chair Catherine Mcguinness said: “Membership of the CPTPP brings potentially greater access for UK firms to fast-growing markets. We welcome the opportunity to focus on the services, data and digital, and investment elements specifically.”
Mcguinness added: “Removing barriers to trade in these areas would not only be good news for firms and consumers, but could help support wider global goals including a swift recovery from Covid and the race to net zero.”
THE UK SHOULD STRIVE TO SET CLEAR GROUND RULES FOR DIGITAL TRADE AND BUILD AN OPEN AND ROBUST FRAMEWORK FOR FUTURE DIGITAL TRADE AND TECHNOLOGICAL COOPERATION