Source · Select Committees · Business and Trade Committee

Recommendation 6

6 Acknowledged

Asia's divergent digital trade governance creates opportunity for UK alignment.

Conclusion
Asia is fast becoming a key market for digital trade, shaped by divergent data governance models and rapid technological transformation. While regulatory fragmentation poses challenges, it also creates a window for the UK to support greater alignment through trusted, collaborative partnerships. There is a clear opportunity to promote convergence—via CPTPP, bilateral frameworks, or targeted initiatives—in ways that expand access, build resilience, and benefit UK firms operating globally (Conclusion, Paragraph 47)
Government Response Summary
The government acknowledges the importance of digital trade and states its Trade Strategy aims to explore deeper digital trade cooperation, including potentially acceding to DEPA and other agreements, while continuing to lead at the WTO. However, no firm commitments are made regarding new actions or accession.
Government Response Acknowledged
HM Government Acknowledged
The Trade Strategy makes clear the Government’s intention to explore opportunities to deepen digital trade cooperation and strike further digital trade agreements. Sector specific agreements will be a key part of the Government’s support of the digital and technology growth driving sector. Exploring accession to DEPA, if it is in our national interest, will be part of this. The Government is at an early stage in this work and is not in a position to confirm that we will seek accession at this point. As also referenced in the Trade Strategy, other potential digital trade agreements are also being explored with Thailand and Malaysia. The UK continues to be a leading voice on digital trade at the World Trade Organization (WTO). We are strong supporters of the Moratorium on Customs Duties on Electronic Transmissions (E-Commerce Moratorium) and continue to work towards keeping it in place and ultimately making it permanent. The UK has played a leading role in E-Commerce Joint Initiative negotiations and joined the resulting WTO Agreement on Electronic Commerce in July 2024 as a founding Member. While we are disappointed that a small minority of WTO Members blocked the incorporation of the Agreement into the WTO rulebook, we and our likeminded partners are committed to giving it legal effect, including on an interim basis if necessary, as soon as possible.