On 10 March, the European Union (EU) and the Republic of Korea concluded negotiations for a landmark Digital Trade Agreement (DTA). This marked a commitment to a strong partnership capable of navigating the fast-evolving digital landscape.
During the 12th Trade Committee meeting under the EU-South Korea Free Trade Agreement (FTA), Maroš Šefčovič, the Commissioner for Trade and Economic Security, and Korean Trade Minister Cheong In-kyo emphasised the need for mutually beneficial digital regulations. The DTA establishes binding rules that enhance consumer trust, provide legal certainty for businesses, and ensure seamless data flows while addressing challenges in the digital economy.
The Digital Trade Agreement (DTA) enhances the 2010 EU-Korea Free Trade Agreement (FTA), significantly strengthening economic ties between the two partners. Since 2011, bilateral trade has reached a record €132 billion in 2022. The DTA also aligns with the EU-Korea Digital Partnership and sets high standards for digital trade in the Indo-Pacific region, prioritising individual rights.
Digital trade examples include cloud services, online financial transactions, ordering products, and using apps. To further strengthen these ties, the Specialised Committee on Emerging Trade and Economic Issues will meet annually and report to the Trade Committee.
Key provisions of the DTA cover cross-border data flows, privacy protection, customs duties on electronic transmissions, electronic contracts, and regulatory cooperation. It acknowledges the validity of electronic contracts and encourages electronic signatures, allowing European companies to serve South Korean customers more efficiently.
“Today marks a double success in that regard, as we not only contribute to the well-being of our businesses and citizens but also demonstrate our strong commitment to the international rules-based system. Our FTA and DTA will ensure businesses and consumers benefit from a fair, safe and open trade system, both online and offline,” said Maroš Šefčovič, Commissioner for Trade and Economic Security; Interinstitutional Relations and Transparency.
The EU and Korea will also deepen their 2010 FTA by establishing a specialised committee focused on emerging trade issues like economic security and supply chain resilience.
The conclusion of negotiations paves the way for the formal signing and finalisation of the DTA, which will undergo legal review and translation into all EU languages before being presented to the Council and European Parliament.
