The EU and the Republic of Korea have concluded negotiations for a landmark Digital Trade Agreement (DTA). During the 12th Trade Committee under the EU-South Korea Free Trade Agreement, Commissioner for Trade and Economic Security Maroš Šefčovič and Korean Trade Minister Cheong In-kyo emphasized the importance of mutually beneficial rules for data and digital technologies.
This ambitious Agreement reflects the EUs commitment to setting high standards in digital trade, further connecting the digital economies of the EU and Korea. The deal provides binding rules that promote consumer trust and legal certainty for businesses, while eliminating unjustified trade barriers.
The DTA promotes an approach with individuals and their rights at the core. It ensures that the EU and Korea retain policy space to address new challenges in the digital economy.
The provisions cover cross-border data flows, privacy and personal data protection, customs duties on electronic transmissions, electronic contracts, authentication and trust services, source code protection, online consumer trust, unsolicited direct marketing communications, open government data, and regulatory cooperation on digital trade.
Additionally, this Agreement seeks to enhance digital trade in services and goods, by providing legal certainty for European businesses in Korea. It recognizes the legal validity and enforceability of electronic contracts and encourages the use of electronic signatures.
The EU and the Republic of Korea also agreed to deepen their 2010 FTA by establishing a new specialized committee on emerging trade and economic issues. This committee provides a platform for strategic cooperation.
Next steps
The political conclusion marks the end of negotiations for the EU-Korea Digital Trade Agreement. The Commission and Korea will now follow their respective procedures towards formal signature and conclusion of the agreement.
Background
The Digital Trade Agreement complements the 2010 EU-Korea FTA, which supports strong and growing economic ties. Since its application in 2011, bilateral trade has grown to record levels, reaching €132 billion in 2022.
The DTA also complements the EU-Korea Digital Partnership. It sets high standards for digital trade rules in the Indo-Pacific region and beyond.
Examples of digital trade range from cloud services to everyday use such as downloading an app.
The Specialized Committee on emerging trade and economic issues will further strengthen these ties, reporting annually.
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