Digital Trade Agreements

What is digital trade?

Digital trade covers trade in goods and services enabled by the internet, and other information and communication technologies (ICT).

This can take several forms:

• Goods or services ordered digitally and physically delivered (e.g. order clothes online that are later delivered at your house), or;
• Goods or services ordered digitally and delivered digitally (e.g. buy an app that you install on your smartphone). 

Digital trade is also about:

• The use of technologies in production or distribution processes (e.g. tracking road cargo in real time to develop more efficient supply chains). or;
• The transfer of data across borders (e.g. data stored in the cloud when working online).

Why does digital trade matter?

Digital trade is growing fast. Over 60% of global GDP is now considered linked to digital transactions.

Businesses and consumers are increasingly buying goods and services online; in 2019, global online sales amounted to over €26 trillion.

The EU has a key interest in digital trade. The EU is the world’s largest exporter of services; 48% of them (excluding investment) are digital.

New opportunities are at stake. Digital trade barriers are increasingly used for protectionist reasons and cause wider economic harm.

What are Digital Trade Agreements for?

• Unlocking new markets that offer a wider choice of better-quality goods and services that can easily be found and procured online;
• Making electronic transactions easier (e.g. electronic signatures, electronic authentication);
• Promoting a safe online environment for consumers.
• Ensuring consumer protection, and protecting consumers' data;
• Creating legal certainty for businesses and boosting trust (e.g. no data localisation requirements, protection of computer source code, avoiding forced technology transfer);
• Improving access to electronic commerce (e.g. access to the internet, online content and government data);
• Digital trade facilitation: less administrative burden for electronic commerce (e.g. paperless trading, e-invoicing).

Protecting EU values and fundamental rights

The EU will negotiate these agreements in view of its existing and upcoming legislation that reflects EU values to ensure a secure, safe and sustainable digital transformation.

The EU’s protection of personal data and privacy is non-negotiable. This was the case for all past EU agreements and it will not change in the future.

The negotiations will allow the EU to promote its sustainable vision for the digital economy.