Commonwealth Model Law on Digital Trade launched to transform global trade  - Trade Treasury Payments

At the Caribbean Telecommunications Union’s ICT Week in Jamaica, the Commonwealth Secretariat launched the Commonwealth Model Law on Digital Trade along with an implementation guide. This legal framework aims to modernise trade rules, strengthen competitiveness, and drive inclusive growth in the digital economy across the Commonwealth’s 56 member countries.

The launch comes at a critical time, as most existing trade laws were designed for a paper-based economy, whereas today’s businesses operate digitally, across jurisdictions, and in real-time. The model law provides governments with a harmonised framework to legally recognise electronic communications, contracts, signatures, and transferable digital records. It also enables businesses to replace outdated manual processes with faster, more cost-effective, and more secure digital trade systems.

According to Rajiv Babooram, Adviser and Head of the Commonwealth Connectivity Agenda at the Commonwealth Secretariat, “digital trade does not succeed on technology alone. It requires trust, certainty, and legal frameworks that make an electronic document as valid as one printed and stamped, a digital signature as enforceable as one written by hand, and an online transaction as secure as one done face-to-face. Legal reform is not an option; it is the foundation on which our digital economy must be built.”

The Commonwealth’s approach leverages its unique position as its member countries already trade with each other, and many share a common legal system. The model law is especially useful because it helps legislative drafters save time and reduce costs by offering a customisable template that can be adapted to local contexts as well as existing legislation.

What are the economic benefits?

The updated Quantitative Analysis of the Move to Paperless Trade Report shows that full implementation of digital trade frameworks across the Commonwealth could generate up to $1.2 trillion in efficiency and growth gains by 2026, including $90 billion in additional intra-Commonwealth trade.

These figures translate into tangible business benefits. In jurisdictions that have reformed similar laws, transaction times have been reduced from months to hours, costs have dropped by as much as 80%, and productivity has increased by 60%. For micro, small, and medium-sized enterprises (MSMEs) in particular, this legal modernisation means faster transaction times, reduced compliance burdens, and access to new markets.

Caribbean leading the way 

The Caribbean region has taken a leading role in adopting this framework. The Hon Konris Maynard, Minister of Public Infrastructure, Energy and Utilities, Domestic Transport, Information, Communication and Technology and Posts in St Kitts and Nevis, said, “I am happy to advise that St Kitts and Nevis will be the first country in the Caribbean to pilot the Commonwealth Model Law on Digital Trade, and we are looking forward to paving the way ahead for regional alignment.”

This commitment highlights the importance of digital trade modernisation for island nations. “The Caribbean region holds significant potential for innovative, bankable business ideas and we need is for MSMEs to be able to reach international markets. To make this happen we must put in place the legal framework that creates a business-friendly environment by reducing compliance costs and seamless processing of transactions, by companies large and small, to reach global markets,” said the Hon Melford Nicholas, Minister for Information, Broadcasting, Telecommunications and Information Technology of Antigua and Barbuda.

The way forward for model law implementation 

The launch in Jamaica marks the beginning of a new phase of action rather than the end of a process. The Commonwealth Secretariat has committed to supporting member states through a regional pilot programme that encourages peer-to-peer knowledge exchange and cooperation between member states.

Additionally, work has begun on the development of regional digital trade roadmaps to promote interoperability of laws across borders, strengthen regional economic corridors, and integrate supply chains into global networks. 

This effort also supports the Commonwealth Secretariat’s 2025-2030 Strategic Plan, which focuses on improving economic resilience in member countries. As implementation proceeds across member states, the coming years will showcase the impact of these reforms through increased trade volumes, improved transaction efficiencies, and broader market access.