The UK and Singapore will today (28 June) launch negotiations on
a new ambitious digital trade agreement that could remove
barriers to digital trade and enable UK exporters to expand into
high-tech markets.
International Trade Secretary and the
Singaporean Minister in charge of Trade Relations Mr S. Iswaran
will meet by video call to kick start negotiations.
The UK is the first European country to start negotiations on a
Digital Economy Agreement (DEA). Singapore and the UK are both
global leaders in the digital economy and 70% of UK services
exports, from financial and legal services to music streaming and
e-books, were digitally delivered to Singapore in 2019, worth
£3.2 billion.
The DEA would open further opportunities for British businesses
to deliver their services through digital trade. It would help
cut red tape and ensure companies can trade more efficiently
through digital technology such as electronic transactions,
e-signatures and e-contracts.
Today’s announcement is part of the government’s strategy to
place the UK at the centre of a network of modern free trade
agreements with dynamic countries, and to enhance our status as a
global hub for services and digital trade.
Negotiations will focus on:
- Securing open digital markets for exporters, allowing them to
expand into new markets and sell traditional products in new
ways.
- Ensuring free and trusted cross-border data flows, while
upholding high standards of personal data protection.
- Cutting red tape for UK businesses by promoting digital
trading systems such as digital customs and border procedures
that will save time and money when exporting.
- Upholding consumer rights and protecting businesses’ valuable
intellectual property like source code and cryptography.
- Deepening our cooperation on future growth sectors like
fintech and lawtech, while working with Singapore to strengthen
our collective cybersecurity capabilities and keep our countries
safe.
International Trade Secretary,
said:
“A cutting-edge deal with Singapore will keep us at the forefront
of the technological revolution, ensuring we lead the way in
digitally delivered trade and industries like fintech and
cybersecurity. We are already the second largest services
exporter in the world, with a huge comparative advantage in this
area that we intend to capitalise on.
“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. We are becoming more flexible, more
nimble and less defensive in our approach to trade. 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.
Sally Jones, Trade Strategy Leader at EY UK and Ireland,
said:
“Digital transformation can unlock human potential and accelerate
new, better ways of working. For the UK’s service sector, it’s
now impossible to distinguish between digital and non-digital
trade. Digital is at the core of everything we do. For too long,
trade deals haven’t taken into account the realities of how
businesses trade today.
“The UK-Singapore [Digital Economy Agreement] is an important
opportunity for the UK to step to the forefront in developing new
trade rules that enable the growth of digital trade and promote
trust. It will also serve as a strategic platform to help UK
companies looking to expand their presence into the dynamic
Asia-Pacific region.”
Miles Celic, Chief Executive Officer at TheCityUK,
said:
“As leading international financial centres and data hubs, there
are tremendous opportunities to be gained from the UK and
Singapore working together on digital trade issues that support
and supercharge innovation. Working with like-minded countries
like Singapore presents a real opportunity to develop a
best-in-class digital agreement.
“Digital restrictions are among the fastest-growing trade
barriers. Over 50% of trade in services is facilitated by digital
exchange, but restrictions on digital trade doubled in the decade
leading up to 2019. To ensure the future of open global services
trade, it’s essential that new agreements support the flow of
data across borders. 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.”
David, techUK CEO
said:
“We are delighted to see the start of the first UK
digital-specific trade negotiation with Singapore, a like-minded
country with whom we share longstanding business ties. Digital
trade is the fastest growing arm of international trade and
getting the rules right will be crucial for our economic
recovery. A UK-Singapore Digital Economy Agreement will put the
UK firmly in the frontrunners club for digital trade policy and
facilitation and techUK stands ready to support an ambitious
deal.”
The UK is already one of the world’s biggest exporters of
services, with remotely delivered services exports worth £207
billion in 2019 alone.
