UK agrees world's most comprehensive digital trade deal with Singapore

The UK has today (Thursday, December 9) secured an agreement in principle with Singapore for a Digital Economy Agreement (DEA) that will cut costs, slash red tape and pave the way for a new era of trade.

It is the first digitally-focused trade agreement ever signed by a European nation. This comprehensive digital trade deal was agreed in record time by International Trade Secretary Anne-Marie Trevelyan and Singapore Minister-in-charge of Trade Relations S. Iswaran after just six months of negotiations.

The DEA will take our trading relationship with Singapore – worth £16 billion in 2020 – to the next level by overhauling outdated trade rules that affect both goods and services exporters, making it easier for UK business to target new opportunities in both Singapore and lucrative Asian markets.

A third of our exports to Singapore are already digitally delivered, including in finance, advertising and engineering, and this deal will create new opportunities to expand digital trade. Services companies will be the big winners, from financial and telecoms giants like Standard Chartered or BT Group to software companies like Wales-based Awen Collective.

The deal will boost a sector that adds £151 billion to the economy and lifts wages, with workers in the digital economy earning around 50% more than the UK average. UK-founded tech unicorns are being created at a rate of almost one a week, and more will now be able to follow in the footsteps of British companies like Revolut, Darktrace and Checkout.com, which are already thriving in Singapore.

Goods exporters will also benefit from streamlining cumbersome border processes. Time-consuming and costly paperwork can be replaced with e-signatures, e-contracts and electronic invoicing with greater confidence.

Singapore is a gateway to the wider Indo-Pacific region and the DEA will support our bid to join Singapore and 10 other nations in the Trans-Pacific Partnership (CPTPP). Membership would mean access to a £8.4 trillion free trade area with vast opportunities for UK business.

The DEA is the latest and most ambitious digital trade win following new agreements with Japan, Australia and New Zealand that all contain advanced digital chapters. Under the UK’s Presidency, G7 countries agreed on ground-breaking Digital Trade Principles in October, which will help to modernise trade and spread the benefits of technology more widely.

The Singapore DEA will overhaul trade rules, so they are tailored to UK business. Wide-ranging benefits include better data flows, stronger cybersecurity and closer links between two hi-tech and services hubs.

Source: UKGovernment