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EU and Canada launch negotiations for a Digital Trade Agreement
Yesterday in Toronto, Commissioner for Trade and Economic Security, Maroš Šefčovič, and Canada's Minister for International Trade Maninder Sidhu launched negotiations for an EU-Canada Digital Trade Agreement (DTA). Building on nine years of successful implementation of the EU-Canada Comprehensive Economic and Trade Agreement (CETA), this new deal will upgrade EU-Canada trade by making it easier and safer for businesses to trade digitally across borders and providing stronger protections for consumers online.
The launch of DTA negotiations reflects the mutual commitment to secure, open and rules-based trade, and to strengthening and diversifying trade with like-minded partners. Through this agreement, the EU and Canada aim to play a leading role in shaping high-standard international rules for digital trade.
Focus on trust and predictability
The agreement is expected to set clear, predictable rules for businesses and consumers engaged in digital trade, while ensuring that both the EU and Canada retain the right to develop and implement policies addressing new digital economy challenges. More specifically, the DTA will aim to:
- Create a safe online environment with binding, high-standard consumer protections for personal data and privacy, and protect against unsolicited commercial messages. This will boost consumer confidence and assurance in digital transactions.
- Enhance legal certainty for businesses by promoting paperless trade; ensure the validity of electronic signatures, contracts and invoices; and prohibit customs duties on electronic transmissions for more efficient and predictable digital transactions.
- Promote fair digital trade by prohibiting unjustified data localisation requirements and forced transfers of software source code, thereby protecting businesses from protectionist practices and fostering confidence in digital markets.
Background
Discussions at the EU-Canada Summit in June 2025 prepared the ground for the launch of the DTA negotiations, with both partners reaffirming their commitment to reinforcing their economic partnership and diversifying markets. A successful scoping exercise took place in September 2025, with preliminary discussions starting in February 2026.
CETA provides a framework for trade in goods and services, as well as for cross-border investment and public procurement. Since it entered into force nine years ago, trade in goods has jumped 76 percent – to over €81 billion. Trade in services has surged 97 percent – to nearly €51 billion. The DTA will complement CETA by addressing emerging needs in the digital economy.
The DTA will also build on the EU-Canada Digital Partnership, signed in December 2023. While the Digital Partnership sets a non-binding framework for regulatory and research cooperation, the DTA will provide binding commitments that businesses and consumers can rely on.
Digital trade is growing in size and importance, with over 60% of global GDP linked to digital transactions. The EU is the world's leading exporter and importer of digitally deliverable services. As of 2023, 54 % of the EU's service trade was conducted digitally, amounting to €670 billion in imports and €661 billion in exports from outside the EU. This includes, for example, telecommunication services, computer and information services, and other services that are typically delivered digitally (financial services, insurance and pension services, etc).
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