Šefčovič Applauds Conclusion of EU-Korea Digital Trade Agreement Negotiations

Brussels/Bratislava – The European Union and the Republic of Korea have successfully concluded negotiations on an innovative digital trade agreement (DTA) as of Monday, reaffirming their dedication to a robust partnership that can navigate the fast-evolving digital environment. EU Trade and Economic Security Commissioner Maroš Šefčovič highlighted that this agreement with Seoul is set to positively influence the everyday lives of Europeans, according to a report from TASR’s correspondent.

Šefčovič announced the signing of the agreement alongside Korean Trade Minister Jeong In-kyom during the 12th Trade Committee meeting under the Free Trade Agreement between the EU and South Korea. He emphasized the significance of establishing mutually beneficial regulations related to data and digital technologies, which are increasingly integrated into all aspects of life.

The Slovak Commissioner noted that digital trade constitutes about 25% of global trade and is expanding at a rate that outpaces traditional commerce.

“The EU leads globally in the export and import of digitally delivered services, which reached a total worth of 1.3 trillion euros in 2022, accounting for 54% of the EU’s total service trade. The agreement with the Republic of Korea marks a substantial milestone, following a similar pioneering agreement with Singapore that we anticipate signing in the upcoming months,” stated Šefčovič, underscoring the positive implications of the Seoul agreement for the daily lives of Europeans. He also mentioned ongoing trade discussions with Thai partners.

This ambitious agreement reflects the EU’s dedication to establishing high-quality standards for digital trade while enhancing the connections between the digital economies of the EU and Korea. It provides enforceable rules that foster consumer trust, create predictability and legal certainty for businesses, and ensure reliable data flows, all while eliminating and preventing unnecessary barriers to digital trade.

The provisions of the DTA encompass various aspects, including cross-border data flows, privacy protection, tariffs on electronic transmissions, electronic contracts, authentication and trust services, source code protection, consumer confidence in online transactions, unsolicited direct marketing communications, open government data, and regulatory cooperation in digital trade.

This agreement will enable European companies to serve their South Korean customers more effectively from Europe. Additionally, European consumers will gain from enhanced consumer protection regulations and measures to combat unsolicited communications.

The EU and the Republic of Korea also agreed to bolster their 2010 free trade agreement by forming a new specialized committee to address emerging trade and economic issues.

Moving forward, the Commission and Korea will work towards the formal signing and finalization of the DTA. This process will involve legal arrangements and translations into all EU languages before the proposal is presented to the EU Council and the European Parliament. (10 March)