Canada-EU Digital Trade Agreement Talks Begin

Building on the growing trade relationship between Canada and the EU, the Digital Trade Agreement would modernize the rules for digital commerce and strengthen protections for online trade.

Canada and the European Union (EU) have launched negotiations on a new Digital Trade Agreement (DTA), a step that will build on their broader trade relationship while addressing growing demands in the digital economy.

The DTA announcement was made during the fifth Canada-EU Comprehensive Economic and Trade Agreement (CETA) Joint Committee meeting in Toronto on March 5, 2026.

According to the European Commission, the proposed agreement is intended to create clearer and more predictable rules for businesses and consumers engaged in digital trade, while preserving both sides’ ability to regulate emerging digital economy issues.

If concluded, it could give Canadian and European businesses a more modern framework for digital commerce, particularly in areas such as cross-border data flows, online services, digital transactions, and cybersecurity.

The DTA is also expected to complement the Canada-EU Digital Partnership, which was launched in November 2023. While that partnership provides a framework for cooperation on digital policy and innovation, the new agreement would add a trade-focused set of rules for the digital economy.

While negotiations are only beginning, the move reflects a mutual commitment to staying secure, open, and rules-based while building stronger trade ties with like-minded partners.

Scope of the Digital Trade Agreement

The talks are expected to cover a range of digital trade issues. According to the European Commission, the Digital Trade Agreement is expected to:

• Create a safer online environment by strengthening protections for personal data and privacy and limiting unsolicited commercial messages.
• Give businesses more legal certainty by supporting paperless trade, recognizing electronic signatures, contracts, and invoices, and maintaining the ban on customs duties on electronic transmissions.
• Encourage fair digital trade by restricting unjustified data localization requirements and forced transfers of software source code.

Digital trade talks build on growing Canada-EU ties

The launch came alongside other outcomes from the CETA Joint Committee meeting, including the adoption of faster procedures for certain investment dispute arbitrations and the completion of technical work to extend the Good Manufacturing Practices Protocol to active pharmaceutical ingredients.

The new talks also come amid continued growth in Canada-EU trade since CETA entered into provisional application on September 21, 2017.

According to Canada, merchandise trade between Canada and the EU reached $134 billion in 2025, more than 77% higher than in 2016, before CETA came into force.

The European Commission separately said that since the implementation of CETA, bilateral trade in goods has increased by 75% and in services by 97%.

At Cole International, we offer trade consulting and customs brokerage services to help Canadian businesses manage cross-border trade with greater clarity and confidence.

Reach out to one of our trade professionals to discuss how the proposed Digital Trade Agreement and broader Canada-EU trade developments may affect your import strategy.