Draft legislation allowing legal recognition of electronic trade documents has been published by the Law Commission
According to the Commission, its proposed reforms could revolutionise global trade. Currently, international trade, which is worth about £1.266tn to the UK, relies on the use of paper documents which must be physically transferred. For example, it is common to find 50 sheets of paper in a package of shipping documents that must be exchanged between as many as 30 different parties.
If the draft legislation, laid before Parliament this week, is implemented, trade could be conducted using electronic versions of bills of lading, bills of exchange and other documents.
Law Commissioner, Professor Sarah Green said: ‘Electronic documents have the potential to make global trade more efficient, secure and resilient to the impact of unexpected international events such as pandemics. The digitalisation of trade documents also promises cost savings in the billions.’
