India-UK CETA: Bilateral digital trade gets the enablers it needed

Its provisions are expected to give paperless electronic trade a big fillip and brighten the prospects of technology exporters

- ARPITA MUKHERJEE

With a strong mutual interest in supporting technology companies and enhancing cross-border dealings, the Digital Trade chapter of the India-UK Comprehensive Economic and Trade Agreement (CETA) is the most comprehensive one on the subject that India has signed in any trade agreement till date. Unlike the India-UAE digital trade chapter, India moved away from soft commitments (reflected in its use of language such as "shall endeavour to do") to undertaking firm commitments ("shall do") in order to maintain a legal framework consistent with international best practices, like those under the UNCITRAL Model Law of Ecommerce (1996).

The chapter covers firm commitments in other areas as well. For example, it provides a legal framework for contracts to be concluded electronically, ensuring the legal validity of e-contracts. It would make trade administration documents available to the public in digital format and let administrative trade paperwork be submitted digitally as a legal equivalent of hard copies. These provisions are aligned with New Delhi's objective of Digital India and commitments to cross-border paperless trade.

All this can also lead to significant cost reduction for micro, small and medium enterprises (MSMEs). A study by the International Chamber of Commerce for UK and Coriolis in 2021 had estimated that digitizing transferable documents could boost MSME trade by 25% and lead to a 35% improvement in their business efficiency.