- Electronic trade documents to be granted same legal status as
physical trade documents, making trade more efficient, cleaner
and cheaper for firms
- UK economy set to see over £1 billion boost over the next
decade, with UK businesses enjoying huge cost savings
- Act is a cornerstone to not only revolutionising how the UK
trades, but to digitalising trade across the world
A new law allowing shipping containers to be traded using digital
documents, not paper ones, has been created after
the Electronic
Trade Documents Act received Royal Assent today
(Thursday 20 September).
The simple yet impactful change is estimated to add over £1
billion to the British economy over the next decade by making
trade more straightforward, efficient and sustainable.
, Minister for Tech and the
Digital Economy said:
The global container shipping industry generates billions of
paper documents a year – and in reality there’s no need for the
immense costs UK businesses have to face in producing them, and
the detrimental environmental impact that this has.
What may look to many of us as a small change to the law is
something that will have a massive impact on the way UK firms
trade, and in turn, is going to boost our economy by over £1
billion over the next decade.
Existing laws dating back to the 1800s previously meant that
exporters and importers have to use paper documents to transfer
ownership of the goods they are shipping – creating a costly,
inefficient and outdated way of working.
The government estimates that the new law could generate a net
benefit of £1.14 billion for the British economy over the next
decade for UK businesses trading across the world, supporting the
Prime Minister’s priority of growing the economy.
UK Minister for International Trade, , said:
This new act will make it easier for businesses to trade
efficiently with each other, cutting costs and growing the UK
economy by billions over time.
It’s exciting to see the power of technology being harnessed to
benefit all industries, reduce paper waste and modernise our
trading laws.
UK businesses, both big and small, have been calling for
paperless trades for decades, especially as the development of
electronic document technologies has become increasingly feasible
for the industry.
With less chance of sensitive paper documents being lost, and
stronger safeguards through the use of technology, digitalising
trade documents is also set to give businesses that trade
internationally greater security and peace of mind.
Secretary General ICC, United Kingdom Chris Southworth said:
The Electronic Trade Documents Act is a game changing piece of
law not just for the UK but also for world trade. The Act will
enable companies to finally remove all the paper and inefficiency
that exists in trade today and ensure that future trade is far
cheaper, faster, simpler and more sustainable. This presents a
once in a generation opportunity to transform the trading system
and help us drive much needed economic growth.
said:
It has been an honour to sit on the Special Public Bill Committee
for this ground-breaking, potentially, game-changing, Act.
This is a small change in the law with the potential to make a
colossal impact, unleashing innovation and investment in digital
trade solutions and delivering significant economic and
environmental benefits. Currently it can take days to transfer
documents of title – with digital trade documents that will melt
into minutes.
With English law being the very foundation of international
trade, this Act puts the UK ahead and in the lead of not only
other G7 countries, but almost all other countries in the world.
The UK is widely seen as a leader in digital trade and is setting
out an approach which the rest of the world will seek to follow.
The International Chamber of Commerce estimates 80% of trade
documents around the world are based off English law, and this
Bill serves as the cornerstone to truly digitalising
international trade.
