A new law that allows shipping containers to be traded using digital documents has been created after the Electronic Trade Documents Act received Royal Assent this week.
The Electronic Trade Documents Act is set to boost Britain’s economy by over £1.14bn by making digital trade more straightforward, efficient, and sustainable.
Commenting on the new law, Paul Scully, Minister for Tech and the Digital Economy, said: “The global container shipping industry generates billions of paper documents a year. However, 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 is going to boost our economy by over £1bn over the next decade.”
The impact of digital infrastructure on the British economy
Existing trade laws that date back to the 1800s meant that importers and exporters had to use paper documents to transfer the ownership of their goods. This creates a costly, inefficient, and outdated method of operation.
However, the Electronic Trade Documents Act is set to change this. The Act’s impact on our digital infrastructure will revolutionise the way businesses trade across the world and support the government’s pledge to grow the economy.
“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,” explained Nigel Huddleston, UK Minister for International Trade.
He added: “It’s exciting to see the power of digital technology being harnessed to benefit all industries, reduce paper waste, and modernise our trading laws.”
Further digitalisation of the UK economy has been welcomed by UK businesses, which have been calling for digital trade methods for many years.
How will the Electronic Trade Documents Act impact national security?
With the decreased chance of sensitive and confidential paper documents being lost and stronger safeguards through the use of digital technology, the Act is set to give businesses that trade internationally greater security and peace of mind.
Chris Southworth, the UK’s Secretary General ICC, stated: “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 remove the inefficiency that exists in trade 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.”
With English law being the foundation of international trade, the Act puts the UK at the forefront of G7 countries and others worldwide.
The UK is widely acknowledged as a leader in digital infrastructure technology and is setting out an approach the rest of the world wishes to follow.
The International Chamber of Commerce estimates that 80% of trade documents worldwide are based on English law, and the Electronic Trade Documents Act serves as the cornerstone to truly digitalising international trade.
