Including a chapter on digital trade in the new United Kingdom (UK) free trade agreement ensures New Zealand technology will continue to have access to the massive UK market, NZTech chief executive Graeme Muller stated.
More than 10 percent of New Zealand’s international technology sales are in the UK, creating almost $1 billion in offshore revenues for Kiwi tech firms.
The UK-FTE digital trade chapter includes agreements on multiple digital foundations considered critical for the smooth functioning of modern digital society.
This includes digital identities, electronic authentication, electronic invoicing, encryption, cross-border data flow and location of computing facilities.
“This agreement opens up a world of possibility for all sectors of the economy, not just the tech sector,” said Muller.
“In the future, New Zealand businesses will be able to invoice a customer in the UK electronically and, in theory, immediately receive payment.”
Muller continued that the digital trade chapter in the agreement also included important societal aspects for a digital nation, including digital inclusion, digital innovation, cyber security and open government data.
New Zealand’s recently passed legislation on digital identity and cross-border recognition will streamline the flow of digital services for people while maintaining privacy and security.
“It is great to see the New Zealand Government recognising how digital is now a core part of any agreement and ensuring the digital doorways are open for New Zealand businesses.”
The New Zealand tech sector is now the second largest export contributor to the economy, generating more than $11 billion in offshore sales, accounting for around 8 percent of the economy, and employing more than 100,000 people.
