THE DRAFT convention on negotiable cargo documents has been approved by the United Nations Commission on International Trade Law (UNCITRAL), paving the way for it to be adopted by the UN General Assembly.
The new draft convention aims to address a legal gap in international trade by establishing a harmonised legal framework for negotiable documents of title across all modes of transport.
Until now, only maritime transport of goods has used a widely recognised legal document, the bill of lading, which enables goods to be bought, sold, or used as collateral while still in transit.
The draft convention on negotiable cargo documents was finalised during UNCITRAL’s 58th session, reflecting three years of collaborative work among diplomats, legal experts and trade professionals. This achievement reflects a shared commitment to developing a practical, future-oriented legal framework for modern commerce.
Working Group chair Beate Czerwenka said adoption would “empower small businesses to access finance, landlocked nations to participate more fully in global trade, and us all to build a more efficient, resilient and digitalised trade ecosystem.”
“Thanks to the new draft convention on negotiable cargo documents, the vision of a world where trade is faster, safer and more accessible is becoming a reality,” Professor Czerwenka said.
International Forwarders and Customs Brokers Association of Australia (IFBCAA) manager border and biosecurity, Brad Leonard, said as a member of UNCITRAL, Australia was committed to advancing global trade facilitation initiatives.
“As an industry, we welcome the progression of the draft UN Convention on Negotiable Cargo Documents and look forward to its eventual adoption by the United Nations General Assembly,” Mr Leonard said.
He noted one of the key benefits of negotiable cargo documents was their ability to provide flexibility in global supply chains.
“For example, shippers can switch to alternative modes of transportation in the event of disruptions to shipping routes without diminishing the value of collateral in trade finance or losing the ability to sell goods while in transit,” he said.
Mr Leonard said under the current proposals, negotiable cargo documents would exist in digital form as negotiable electronic cargo records, offering greater efficiency and harmonisation in trade transactions.
The Australian government is exploring options for law reform to support paperless trade through potential legislation aligned with the UNCITRAL Model Law on Electronic Transferable Records (MLETR).
IFCBAA contributed to the Attorney-General’s Department consultation process, voicing strong support for adopting MLETR in Australia. According to IFCBAA, embracing MLETR is both timely and essential, enabling Australia to align with international best practices already implemented in jurisdictions such as the United Kingdom.