Part 3: ETDA, government participation in international trade

The final installment of Havona’s series on the foundations for worldwide electronic record sharing and digital commerce.

There is a rising tide of support among states for updating trade law to reflect the growing importance of digital trade.

The UK Electronic Trade Documents Act 2023

Because roughly 70% of international trade is conducted under English law — and around 80% of all bills of lading issued worldwide are governed by English law — these initiatives matter well beyond the UK. The Electronic Trade Documents Act 2023 (ETDA) received Royal Assent in July 2023 and took effect on 20 September 2023, the product of a multi-year effort led in part by the ICC and the Law Commission of England and Wales.

The legislation establishes a binding legal basis for the MLETR-compliant use of electronic trade documents including bills of lading and warehouse receipts. As a result, these documents can be electronically transferred and endorsed, and relied on in court, without the legal gap that previously existed under English law.

Elsewhere in the world

Digital commerce is gaining ground in other jurisdictions too. Singapore introduced the Networked Trade Platform, a national trade information management system, and adopted the MLETR through its Electronic Transactions Act. The United Arab Emirates — including the Abu Dhabi Global Market — has invested heavily in digital trade. Other jurisdictions including Bahrain, Papua New Guinea, Belize, Kiribati, and Paraguay have adopted the MLETR, with more expected to follow.

Global frameworks and national initiatives are together easing the way for the widespread use of electronic trade documents. As the pace of international trade quickens, shaping legal frameworks to support digital trade — through cooperation between the public and private sectors — will be a key engine of growth and innovation.