New World Trade Organisation (WTO) rules are set to cut the cost of global trade by billions of pounds every year, it has been announced.

The Department for International Trade (DIT) – who helped broker the agreement – said the deal represents a massive win for service businesses in the UK.

Here’s what you need to know.

What’s changing?

The UK is among 67 WTO members to have agreed to implement the Services Domestic Regulation, a deal that will cut red tape around licensing and qualifications.

The other signatories include the US, China, Russia, Japan, Germany, France and Canada.

According to reports, the agreement could reduce service trade costs by around seven per cent per year – around £113 billion annually.

The regulation will cover approximately 90 per cent of global services trade, meaning Britain – the second-largest services exporter – will be among the primary beneficiaries of the new rules.

The deal comes after Britain formally joined the WTO as an independent member last year, following its departure from the European Union.

Benefits for British businesses

The DIT said the new regime will make it easier for small and medium-sized enterprises (SMEs), as well as larger businesses, to “navigate foreign markets and obtain authorisation to export overseas”.

Examples of just some of the benefits include:

• Faster processing times for licensing applications
• The acceptance of electronic copies of qualifications
• An end to unreasonable and hidden fees.

“Historic deal” delivers trade rules “fit for the 21^st century”

Commenting on the announcement, the Government said the “historic deal” delivers trade rules “fit for the 21^st century”.

“As the world’s second largest services exporter, the UK is particularly aware of how important it is to cut red tape and get trade flowing to build back better from the pandemic,” said Secretary of State for International Trade Anne-Marie Trevelyan.

Miles Celic, Chief Executive Officer at TheCityUK, added: “This agreement will be celebrated by the UK’s financial and related professional services industry. It is an essential step towards removing the types of trade barriers most often experienced by services exporters.

“This necessary and innovative agreement will reduce costs for UK businesses, support women’s economic empowerment, and is a significant win for the WTO and wider multilateral economic cooperation.”

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The new regulations are set to come into force from 2023.

For help and advice with related matters, please get in touch with our team today.

The Government’s new digital export strategy could boost international trade by billions of pounds every year, it has been suggested.

The report – published by the Board of Trade – outlines new measures and support that will help traders in the wake of Brexit.

Here’s everything you need to know.

How big is the UK’s digital trade sector?

According to the latest statistics, the UK exported over £200 billion worth of digitally delivered services in 2019. This includes everything from purchasing items online to streaming music.

While the 2020 figures have yet to be released, experts believe that the digital economy has exploded throughout the Coronavirus pandemic.

But the Government believes more can be done to help UK businesses capitalise on the “huge opportunities” digital trade presents.

How will the Government support digital businesses?

The report sets out a number of measures designed to break down barriers and help businesses export digital products and services around the world. This includes:

New trade deals –The Government is negotiating comprehensive digital provisions like those agreed with Japan, Australia, and New Zealand, and digital-focused agreements like the Singapore Digital Economy Agreement.

Export Academy – The Department of Trade’s Export Academy was recently expanded to help even more traders start or grow their international sales. You can find more on the Export Academy here.

Improving market access – The new strategy will focus on five primary goals. These are:

– Open digital markets;

– Free and trusted data flows;

– Consumer and business safeguards;

– Digital trading systems; and

– Partnerships to shape global rules, norms, and standards.

Export Support Service – Firms can use the Export Support Service to ask questions about international trading, such as exporting to new markets, what paperwork you will need to sell digital goods overseas, and rules for a specific country.

Sign up to the Trader Support Service – If you export digital goods to Northern Ireland, the Trader Support Service will guide you through any changes due to the implementation of the Northern Ireland Protocol.

Live webinars and videos – HM Revenue & Customs (HMRC) has published a range of helpful videos and webinars to support businesses in the wake of Brexit.

“Digital trade has taken centre stage in the UK Government’s trade strategy after Brexit”

The strategy has been widely welcomed by experts across the industry, such as techUK CEO, Julian David.

“Digital trade has taken centre stage in the UK Government’s trade strategy after Brexit. techUK is a longstanding advocate for, and supporter of, a UK strategy that combines advanced digital trade provisions in bilateral trade agreements with international regulatory cooperation,” he said.

“Today’s Board of Trade report outlines the right priorities for the UK to continue to advance its leadership, both in new bilateral agreements, like the Digital Economy Agreement with Singapore, and in multilateral forums, at the G7 and the WTO. We support the vision outlined in this report that allows the world-leading UK tech sector to scale up and offer their services to customers across the world and we will continue to work closely with the government to deliver on those promises.”

Get advice today

For help and advice with related matters, please get in touch with our team today.