EU and Canada begin negotiations on a digital trade agreement

New negotiations between the EU and Canada aim to create stronger rules governing cross-border digital trade.

The EU and Canada aim to strengthen global digital trade governance through a new bilateral agreement.

The European Commission and Canada have launched negotiations on a new Digital Trade Agreement to strengthen the rules governing cross-border digital commerce.

The initiative was announced in Toronto by the EU Trade Commissioner Maroš Šefčovič and Canadian International Trade Minister Maninder Sidhu.

An agreement that will expand the digital dimension of the existing Comprehensive Economic and Trade Agreement, which has already increased trade in goods and services between the two partners.

Officials say the new negotiations aim to create clearer rules for businesses and consumers engaging in cross-border digital transactions.

Proposals under discussion include promoting paperless trade systems, recognising electronic signatures and digital contracts, and prohibiting customs duties on electronic transmissions.

The agreement between the EU and Canada will also seek to prevent protectionist practices such as unjustified data localisation requirements or forced transfers of software source code.

European officials argue that the negotiations reflect a broader effort to develop international standards for digital trade governance while preserving governments’ ability to regulate emerging challenges in the digital economy.

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