#Thedigitaltradeoff
Brexit day, when the UK is due to leave the EU, is scheduled for Friday 31st January 2020, which coincides with the date for which the ‘Department for Exiting the European Union’ (DExEU) is scheduled to be shut down. The most pressing issue before this deadline, is dependent upon UK Parliament approving the necessary legislation – The Withdrawal Agreement.
So just what will this ‘Brexit Bill’ cost; trade, manufacturers, supplier relationships, ecommerce, retail, and subsequently consumers?
Covering topics including: payments to the EU, citizens’ rights, customs arrangements for Northern Ireland, and the planned 11-month transition period – of which PM, Boris Johnson has insisted a deal is possible by December 2020 – with a vote of 330 to 231 from the house of commons, in favour of the Withdrawal Agreement; the bill is to soon be further inspected by the house of Lords, before being passed indefinitely.
Brexit will undoubtedly have a major impact on UK consumer confidence and likewise, its neighbouring countries. One thing that is for certain; is that nobody really knows what will actually happen, when the UK finally leaves the EU.
1973 was the year that witnessed the UK’s debut into what was then titled, the ‘European Economic Community’. In the 30 years passed, the UK successfully formed complex supply chains with other member states. No tariffs, low costs in moving goods across borders, and limited border delays, were just a handful of the many benefits afforded British businesses. Yet, once departed from the EU, these will no longer be available, to the UK.
So accustomed to e-commerce – online retail, banking, ticketing, auction sites and business to business (B2B) transactions – as we have become – has fed the monstrous threat of disruption; which could risk compromising the modern means, of which we have come to rely upon, and utilise daily.
To add to this confusion, there is also, the combined ambiguity of what will occur, depending on whether the UK leaves the EU, with or without an agreed deal. Holding many competitive advantages in terms of “e” knowledge and experience.
The internet and data-driven technologies are increasingly important in our lives and in our economies.
E-commerce – commerce conducted over the internet; can include both purely electronic ‘data’ products, for example, E-Books, and apps. Whilst also including trade of tangible items like apparel or technological gadgets.
Throughout 2019, the UK was regarded as one of the biggest E-commerce hubs in Europe; with as much as 75% of the UK’s international data flows, and the majority of the UK’s economic activity being dependent on its connections within the EU.
Trade agreements can sometime be defined by concise remits which may exclude broader considerations, such as liberalising e-commerce measures, inequality, free expression and human rights. Just a handful of the factors which should be considered in (World Trade Organisation) WTO rules, when forming the basis of new digital economy guidelines, to better provide an internet and an economy that works for people and planet.
The digital economy concerns more than just trade, and as such, regulations should be developed accordingly.
Although GDPR was enforced in May 2018, to act as a barrier against monopolisation and use of digital data without consent – as an increasing amount of traditional commerce, becomes part of the digital economy – future trade agreements with E-commerce chapters could make further regulatory progress more difficult and could even undermine the GDPR and other existing protective regulations.
American behemoths, such as Google want the freedom to move and store your data across the world with as little regulation as possible. The US for example, generally has lower levels of data protection, when compared to the EU. In short, a no-deal Brexit could be predicted to potentially disrupt the free-flow of commercially valuable data between the UK and Europe.
Conversely, when leaving the EU, The UK could decide to diverge from the EU’s privacy regulations, resulting in limits on data movement between the EU and the UK.
The battle over e-commerce clauses in trade agreements – involving the government seeking and agreeing ambitious digital trade packages, including provisions supporting cross-border data flows – is just one glitch in the wider world, determining the potential future of the digitised global trade economy.
Yet, with a sympathetic deal, the UK government’s Withdrawal Agreement, could seek to secure post-Brexit trade agreements, with e-commerce chapters, which reflect the same current levels – or greater, for data privacy protection.
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