Part 3: ETDA, Government Participation in International Trade
Part Three of the Havona three part blog series on the key frameworks on the road to implementing digital trade and the transfer of electronic records in international trade.
The final installment of Havona’s blog series outlining the foundational tenets for worldwide electronic record sharing and digital commerce.
There is a rising tide of support for updating trade law to reflect the rise in importance of digital trade amongst states.
In the first installment, we took a look at the Model Law on Electronic Transferable Records (MLETR), a proposed piece of legislation meant to standardise the legal treatment of electronic transferable documents in cross-border business dealings. The MLETR encourages technological neutrality and non-discrimination against the use of electronic methods, and it offers a legal framework for the use of electronic transferable records like bills of lading and warehouse receipts.
The second installment of Havona's series delved into the efforts of the ICC and the Law Commission of England and Wales to update the legal framework for the use of electronic documents in international trade. Parliament in the United Kingdom is now debating the Electronic Trade Documents Bill, which aims to establish a legal basis for the use of electronic trade papers including bills of lading and warehouse receipts and encourage conformity with international standards and best practises.
U.K Electronic Trade Documents Act of 2023 (ETDA)
Part three of this series examines the worldwide legal framework for the transfer of electronic records and the role that governments play in facilitating this framework. Since that 70% of international trade is conducted under English Law and 80% of all bills of lading issued worldwide are conducted under English Law, these initiatives are becoming increasingly crucial.
The Electronic Trade Documents Act 2023, passed into law on September 20th, 2023 after receiving Royal Ascent from King charles on July 2023 is the product of a multi-year joint effort, not least by the International Chamber of Commerce (ICC) and the Law Commission of England and Wales.
The legislation's stated goal is to establish binding legal precedent for the MLETR compliant use of electronic trade papers including bills of lading and warehouse receipts. Because of this, these documents can be electronically transferred and endorsed and used as evidence in court without any trouble.
In order to provide a legal framework for the use of electronic transferable records, the Electronic Trade Documents Bill conforms to the UNCITRAL Model Law on Electronic Transferable Records (MLETR). The bill also encourages conformity with global norms and best practises.
The United Kingdom has taken considerable steps in modernising its legal system in regard to the use of electronic trade documents, which is becoming increasingly vital for countries throughout the world. International transactions will be more efficient and secure, and administrative costs will be lowered according to the proposed legislation.
In other parts of the world
Digital commerce is gaining ground in other countries as well. To facilitate the electronic exchange of commercial documents, Singapore, for instance, has introduced the Networked Trade Platform, a national trade information management system. The United Arab Emirates (UAE) is another country that has heavily invested in digital trade and implemented programmes to increase the prevalence of e-commerce. Twenty-three other nations hope to follow suit in 2024 including the United States Of America and Germany.
Global frameworks and initiatives are easing the way for the widespread use of electronic trade documents, which is gaining significance in today's global economy. The adoption of digital trade will be a crucial engine of growth and innovation in the global economy as the pace of international trade continues to quicken. It will be essential to shape legal frameworks and rules to facilitate the adoption of digital trade through the cooperation of public and private sectors, as shown in the efforts of the ICC and the Law Commission of England and Wales.
