Electronic Trade Documents Bill (ETDB) progress reached a new milestone as the House of Commons recently released a detailed research summary. This briefing marks a vital step toward the bill becoming law in the summer of 2023. Furthermore, the House of Lords introduced the Bill earlier and gave it cross-party support. Because the Lords did not amend the document, it continues to follow the special procedure for Law Commission Bills.
Benefits of the Electronic Trade Documents Bill
The House of Commons research briefing provides a clear summary of the ETDB details, benefits, and costs. Specifically, the UK Government quoted Trade Finance Global to support the necessity of digital trade. This evidence shows that trade contract processing times can fall from several days to just a few seconds. Consequently, the Electronic Trade Documents Bill aims to eliminate legal barriers that currently prevent electronic documents from holding the same status as paper.
Improving Efficiency and Security in Trade
The government anticipates several major benefits from this implementation. For instance, electronic trade documents are more cost-effective, efficient, and secure than traditional paper versions. Their usage will significantly reduce trade expenses and accelerate transactions. Additionally, digital systems minimise human errors and provide positive environmental outcomes. Overall, industry stakeholders have expressed a very favourable reception toward these changes.
Legitimising Digital Trade Globally
This research briefing serves as a crucial milestone in legitimising digital trade worldwide. While the Electronic Trade Documents Bill moves through the UK legal process, many international jurisdictions are watching closely. Although no single legal system unifies international trade, many nations follow Common Law. Therefore, the ETDB remains vital for the future of global trade. If you wish to read the entire briefing, you can access the report through official government channels.
Courtesy: tradefinanceglobal.com
