The UK's shift to paperless trade was meant to benefit small firms most, but research shows they remain untouched by the reforms. The Electronic Trade Documents Act 2023 aimed to make digital trade documents legally binding, promising small exporters lower courier fees and reduced administration.
However, the reality is stark. According to research gathered by Ipsos, awareness of the reforms among small business owners is low. Most simply follow their courier's instructions, rather than driving change themselves. The researchers concluded that widespread adoption of electronic trade documentation would require coordinated action by the government and large supply chain actors.
Large companies and shipping carriers have already started to reap the benefits. The use of electronic bills of lading has doubled since 2023, driven by major commodity traders and shipping lines. Nine of the biggest carriers, representing 75% of global capacity, have committed to 100% digital adoption by 2030.
The practical catch for small businesses is the need to maintain costly hybrid paper and digital processes. Even where digital documents are legally accepted, Customs, health authorities, banks, and couriers still require paper originals for some steps. Overseas banks and trading partners may also reject UK digital documents due to software compatibility issues.
Government messaging about improved access to trade finance has failed to resonate with small business owners, who are more interested in direct savings on courier fees and reduced bureaucracy. The British Chambers of Commerce has called for paper documentation to be phased out and for closer co-ordination with the UK's leading trading partners.
The stakes are considerable, with Britain nursing a £74 billion slump in goods exports since Brexit. A clear and co-ordinated approach is needed to get smaller firms trading efficiently and take advantage of the time and cost savings offered by online documentation.
The government has acknowledged the need to address remaining barriers to digital trade, stating that making trade paperless saves businesses time and money. However, more needs to be done to raise awareness and implement the necessary changes to fully embed digitisation into the UK's trade culture.
