11 Jul 2025
by Erika Ly

UK–Australia Digital Trade: Catalysing Innovation in Australia & Asia-Pacific

Secure economic futures through digital trade and breakthrough chapters

In an increasingly complex and fragmented global trade landscape, countries around the world are being forced to reimagine their trade and investment strategies. Amid this uncertainty, rules-based frameworks that facilitate secure and trusted digital trade are more crucial than ever. At the same time, the future of economic growth and prosperity will be shaped not just by traditional goods and services but by digital trade and technology. 

The Australia-United Kingdom Free Trade Agreement (AU-UK FTA), which came into force in 2023, is an exemplar. Australia and the United Kingdom have a long history of partnership, sharing common values, aligned strategic goals, and significant trade and investment ties. Both nations are committed to promoting a peaceful, stable, and prosperous Asia-Pacific region. 

More than that, the AU-UK FTA represents a historic breakthrough which brought a world first in digital trade policy. The inclusion of a dedicated innovation chapter in the AU-UK FTA is the first time in a major bilateral trade deal where innovation is explicitly recognised, not just as a peripheral benefit but as key economic infrastructure.  

The AU-UK FTA is underpinned by democratic values and shared economic interests, establishing a foundation for ongoing collaboration. This model of bilateral cooperation on technology trade and investment plays a critical role in building trust and generating momentum toward greater multilateral digital governance—where maintaining a trusted, rules-based system grounded in shared values remains essential. 

Tackling shared global challenges with tech as a force multiplier

This year marks the second anniversary of the AU-UK FTA, with annual trade between Australia and the UK now exceeding $34 billion. Yet, the value of the AU-UK FTA extends well beyond commercial interests; technology is front and centre as a powerful force multiplier in addressing some of the most pressing global challenges of our time. It positions us to tackle issues like climate resilience, pandemic preparedness, and supply chain security which demand coordinated, cross-border responses. Both the UK and Australia are working together to accelerate shared R&D initiatives and pool innovation efforts to fast-track the development and deployment of technology solutions. These collaborations are also particularly impactful for emerging and critical technologies—such as AI, cybersecurity, fintech, and digital identity—areas where Australia and the UK bring complementary capabilities, established strengths, and significant growth potential.

Why free-trade agreements matter for tech companies

For startups and scaleups, there are tangible benefits that flow from agreements like the AU-UK FTA. These include faster and more predictable market access, and easier recruitment and talent mobility. The FTA reduces regulatory complexity, enabling young companies to scale internationally without getting bogged down by red tape. Simply put—it makes it easier for tech companies to do business, providing a significant commercial advantage.

The FTA’s provisions on talent mobility are especially beneficial for high-growth tech companies, as simplified visa pathways facilitate access to specialised skills across both countries. This advantage helps Australian and UK tech companies attract talent, secure investment, and drive innovation more effectively across borders.

Importantly, bilateral government cooperation sets a clear tone that the business environment is open, creating a vital pathway for deeper industry collaboration. 

For example, the new Tech Council of Australia (TCA) and techUK partnership brings together the leading technology industry associations from both countries with a practical step in advancing the objectives of the FTA. Formalising these ambitions at an industry level, TCA and techUK will work together to deepen cooperation and collaboration between Australian and UK tech sectors, with a focus on technology trade, regulation, investment, and innovation. This includes sharing knowledge and insights, aligning on regulatory and policy issues, and driving practical commercial opportunities for UK and Australian technology companies. At the core of the MoU is a commitment to supporting technology businesses, especially SMEs, to expand across borders. This means better access to markets, clearer insights into regulatory environments, and stronger connections to potential business partners, investors, and customers.

Not just bilateral: a gateway for UK companies in the Asia-Pacific  

While the AU–UK FTA is a bilateral agreement, its significance extends well beyond the two countries. Australia is also a strategic launchpad for UK engagement across the broader Asia-Pacific region. For policymakers, it is an opportunity to influence and shape alignment to create interoperable and harmonised regulatory frameworks, technical standards, and governance regimes. Ultimately, this enables tech companies, especially startups and scaleups who are already navigating complex international markets, to reduce barriers to entry and unlock commercial opportunities. It is all the more important in a growing region—one that is set to account for the majority of global economic growth in the coming decade.

For UK-based tech companies, Australia serves as a trusted commercial base to access high-growth markets across the Asia-Pacific, including ASEAN, India, and beyond. Australia is a country that benefits from regulatory certainty, well-established trade links, and advancing digital infrastructure. Commercial partnership opportunities with Australian companies also mean tapping into a vibrant innovation ecosystem that is backed by strong government support, and a highly skilled and educated tech workforce. 

Conclusion

Addressing the disruption of the global economy requires modernisation in digital trade policy as well as a shift from reactive measures to future-looking policy mechanisms. Trade agreements that recognise digital trade and innovation as essential help safeguard national economic resilience, growth, and security. 

The Australia–United Kingdom Free Trade Agreement (AU-UK FTA) has set a new global standard in this regard—strengthening a trusted rules-based framework, facilitating digital market access, and enabling cooperation on innovative technologies. It also paves the way for industry-led initiatives such as the TCA–techUK partnership to translate digital trade policy into tangible commercial outcomes for tech companies.

While the AU–UK FTA is bilateral, its reach is also regional. Australia is a trusted trading partner and strategic gateway for UK engagement with the Asia-Pacific, one of the most economically dynamic regions in the world. As global economic dynamics continue to shift, the AU–UK FTA is a model of how like-minded partners can leverage digital trade to drive innovation, enhance resilience, and unlock broader regional and global opportunities.

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Meet the team 

Sabina Ciofu

Sabina Ciofu

Associate Director – International, techUK

Daniel Clarke

Daniel Clarke

Policy Manager for International Policy and Trade, techUK

Theophile Maiziere

Theophile Maiziere

Policy Manager - EU, techUK

Lewis Walmesley-Browne

Lewis Walmesley-Browne

Head of Market Access and Consumer Tech, techUK

Tess Newton

Team Assistant, Policy and Public Affairs, techUK

 

 

Authors

Erika Ly

Erika Ly

Public Policy Manager, Tech Council of Australia