EU and South Korea come to Digital Trade Agreement
EU and South Korea have wrapped up negotiations for a Digital Trade Agreement (DTA).
The European Union (EU) and the Republic of South Korea have wrapped up negotiations for a Digital Trade Agreement (DTA), emphasizing the importance of mutually beneficial rules around data and digital technologies.
The DTA sets standards for digital trade rules between the EU and the Indo-Pacific region. These agreements range from cloud services, financial services, and digitally ordered services and products to everyday activities such as downloading applications on a smartphone, booking tickets via apps, and purchasing products online.
Once a year, a specialized committee on emerging trade and economic issues tries to strengthen these ties. During the 12th Trade Committee, Commissioner for Trade and Economic Security Maroš Šefčovič and Korean Trade Minister Cheong In-kyo negotiated how to further connect the digital economies of the EU and the Republic of South Korea.
The DTA's goal is to build digital and data rules with individuals and their rights at its core. It also ensures that both the EU and South Korea have the means to develop and implement policies to address new challenges in the digital economy.
The provisions in the DTA cover topics like 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.
In addition, the trade agreement seeks to enhance digital trade in services and goods by increasing legal certainty for European businesses in South Korea. In other words, to serve South Korean customers directly from Europe more efficiently, and vice versa.
“This Digital Trade Agreement shows how we can work with strategic like-minded partners to bring economic benefits through the digital realm to both consumers and businesses. It is also a testament to the appeal of the EU’s approach to digital issues, namely economic benefits with people and their interests at the center,” Henna Virkkunen, Executive Vice-President for Tech Sovereignty, Security and Democracy, said in a statement.
“In a time of geopolitical uncertainty, strengthening our ties with like-minded partners such as the Republic of Korea is of paramount importance. 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,” Šefčovič added.
The DTA has yet to be formally signed by the European Council and the European Parliament and undergo the legal process in both the EU and South Korea.