– Ayesha Ali, Deputy Director, Digital Trade and Services, Department for Business and Trade


“The UK Government has laid the groundwork for businesses to digitalise their trading processes—but the real momentum must come from businesses themselves”

Digital trade is fast becoming the new global norm. Over the last century, global trade has shifted significantly from physical shipping and cumbersome paperwork to virtual transactions, digital platforms, and automated processes. This change has increased efficiency, reduced costs, and created new opportunities for businesses around the world.

In 2023, the UK led a new wave of innovation by being the first G7 country to pass legislation allowing businesses to use electronic trade documents instead of their paper counterparts. The Electronic Trade Documents Act (ETDA) is a game-changing piece of legislation that has transformative potential for every facet necessary for businesses success – improving logistics, reducing fraud, and boosting efficiency.

UK businesses are uniquely positioned to benefit from these changes. Digital trade now represents over 55% of all our exports and the UK ranks third globally (after the US and China) in having a tech ecosystem valued at over $1 trillion, with a track record in creating over 150 unicorns – start-ups valued at $1 billion or more.[1][2] 

This government is committed to providing the necessary landscape for businesses to innovate and make the transition from paper to electronic trade documents. This is why digital trade, and digitalisation, will be a key component of both the forthcoming Trade Strategy and the Small Business Strategy.

How Trade Digitalisation is Transforming Trade for the Better

Every year, more than 28.5 billion paper trade documents are utilised worldwide. A single cross-border shipment of goods can require up to 36 different trade documents that can be exchanged with up to 30 stakeholders, making the trading process slow and insecure. Trade digitalisation (the simplification of trade processes through the electronic exchange of trade-related data, documents, and authorisations) makes trading simpler by reducing administrative burden and costs, accelerating transaction times, and enhancing transparency.

By adopting ETDs, businesses can operate more efficiently and respond swiftly to market demands, driving global trade into a new era of innovation and connectivity. The government’s impact assessment forecasts that by slashing waiting times to minutes, eliminating paper costs, and fraud-proofing documents, ETDs will bring £1.1bn to our economy over the next decade.

But scaling the benefits of digitalisation is easier said than done, and despite legal reform, take-up of ETDs remains low. That’s why we’re undertaking several initiatives to help businesses demonstrate the advantages of ETDs and equip them with the necessary tools for a smooth transition.

The Government-sponsored UK-Southeast Asia Trade Digitalisation Pilots demonstrated a 90% reduction in email traffic and a 40% reduction in cargo shipment time, saving businesses both time and money. With the success of these pilots, we are now rolling out a UK-Taiwan digitalisation pilot, which is specifically focused on the semiconductor industry. In partnership with the company Clas-SiC Wafer Fab, this pilot will pioneer the first digitalised shipment between the UK and Taipei, strengthening supply chain resilience and data security.

DBT’s UK Export Academy in conjunction with the International Centre for Digital Trade and Innovation run regular webinars for businesses to help them understand the benefits of trade digitalisation and changes introduced by the ETDA.

What’s more, the UK has secured commitments on digitalisation in Free Trade Agreement negotiations with countries such as Australia, Japan, New Zealand, and the European Free Trade Association, and has signed Digital Economic Agreements with Ukraine and Singapore. On the multilateral stage, the UK is a leading signatory to the Agreement on Electronic Commerce, facilitating electronic commerce and promoting trust in digital trade.

The Road Ahead

The UK Government has laid the groundwork for businesses to digitalise their trading processes—but the real momentum must come from businesses themselves. Whether you’re a start-up or a seasoned exporter, now is the time to take that first step, exploring how electronic trade documents and digital processes can streamline your operations, reduce costs, and open new markets.

Talk to your International Trade Adviser, attend a UK Export Academy webinar, or tap into the growing body of guidance and case studies already available. The tools are here, the legislation is in place, and global momentum is building. Don’t wait for change—lead it. Embrace trade digitalisation and be part of shaping a more agile, secure, and prosperous future for UK trade.

Footnotes

[1] United Kingdom | Dealroom.co

2 8f31d80b-en.pdf p.12.

[1] United Kingdom | Dealroom.co

[2] 8f31d80b-en.pdf p.12.