Law School academics contribute to electronic trade document recommendations

Professor David Fox, Dr Simone Lamont-Black and Professor Andrew Steven have influenced the Law Commission for England and Wales’ Report on Electronic Trade Documents (Law Com No 405, 2022).

In 2021 international trade was worth approximately £1.266 trillion to the UK. The moving of goods across borders still heavily relies on paper documents and practices which developed centuries ago. A trade finance transaction typically involves 20 entities and between 10 and 20 paper documents, totalling over 100 pages. Recent technological developments have enabled the use of secure forms of electronic documents. But the law requires to catch up.

The Law Commission’s Report contains a set of recommendations and draft Bill of seven sections. If implemented these would facilitate the use of electronic trade documents. Difficult technical questions are considered by the Report. These include which electronic documents should be the subject of the legislation where the comments of Dr Lamont-Black are drawn on and how the concept of possession can be applied to electronic documents where the views of Professor Fox and his colleague Professor Louise Gullifer of the University of Cambridge are referenced.

The recommendations are only for England and Wales. The Law Commission nevertheless recognises that the existing law here effectively operates on a UK basis despite the differences in property law north and south of the Scottish border. The Report acknowledges Professor Steven’s call for the reforms to apply in Scotland too.