Electronic Trade Documents Act 2023

Lord Kirkhope of Harrogate Excerpts

Thursday 14th September 2023 Lords Chamber

[Lord Offord of Garvel (Con)]

I thank the noble Baroness for that question. That is the nub of what we are dealing with: we have passed the Act, which is a great first step, but we now need to implement it inside our ecosystem. There are going to be great advantages, some of which have already been identified in terms of cost. There are also advantages in data collection. We believe that we can greatly increase our trade finance to SMEs; currently trade finance for exporting is perhaps not the most accessible. We believe that the digital mechanism for data collecting will greatly increase the ability to access finance and reduce its cost, so we see benefits everywhere around this legislation.

[Lord Kirkhope of Harrogate (Con)]

My Lords, while supporting my noble friend Lord Holmes, I want to ask my noble friend the Minister two questions. The first is about the transferability back into a paper form in cases where there has to be default due to a lack of digital experience. Secondly and perhaps more importantly, given that other international bodies have not yet come on board with this very useful initiative by the British Government, is it not a good idea to confirm what nature of law is to apply in each document coming through this system?

[Lord Offord of Garvel (Con)]

I thank my noble friend for that. The purpose and intent of the Act is to give equal weight to paper and digital proof of ownership—bills of lading, letters of credit et cetera—so they can be in either form. On the legal regime, the Bill is modelled on the United Nations law, so it comes from, as it were, a higher authority, but through custom and practice and mercantile law over the last 300 years or so, maritime law is governed largely under English law. There is therefore an easy adoption and an understanding that mercantile trade can continue under English law. As the rest of the G7 countries come forward and adopt similar legislation, I am sure we will find alignment in these matters.