One of the main action lines of the European Union’s external action in recent years has been the establishment of Digital Alliances with countries with common values through the establishment of bilateral agreements called Digital Partnership Agreements (DPAs).
Indeed, these are nothing but specific Trade Agreements in the digital field and do not respond to a single and closed model. Rather, they are heterogeneous treaties that include elements that each of the parties consider of particular interest.
Unlike traditional agreements focused on market access to international trade in goods and services, these focus more specifically on aspects such as the facilitation of e-commerce, the cross-border data flows, online consumer protection, privacy and protection of personal data, and cooperation on technological innovation.
In short, these DPAs have a double objective, on the one hand, they serve trade facilitation in the digital sphere. On the other hand, they serve to create Alliances based on the same values based on the framework of European digital regulation.
For the European Union, as proclaimed in the announced International Digital Strategy, the establishment of this type of digital alliance is a priority. Thus, in recent years, Agreements have been concluded with Japan (2022), Korea (2025), Singapore (2023) and Canada (2023).
Japan, Korea, Singapore and Canada. What do these agreements have in common?
Regardless of the flexibility and particularities of each DPA, there are several common elements they share. For one, the overarching objective of the different DPAs has been the facilitation of digital trade, promoting trade exchanges of the usual goods and services typical of the digital economy (i.e., semiconductors) and the establishment of mechanisms to protect consumers online, promote Foreign Direct Investment in the digital sector and cooperate in the field of technological innovation.
Another element all DPAs share is the creation of Digital Partnership Councils that meet periodically to evaluate the implementation of the agreement and eventually assess its revision. These Digital Partnership Councils are designed to promote security, connectivity, enhance digital skills and ensure interoperability, all while incorporating EU rules into emerging technology ecosystems (i.e., GDPR compliance).
In parallel to the existing DPAs, the EU has participated in multilateral negotiations within the World Trade Organization (WTO) to establish a global framework on digital trade. Since 2019, more than 80 WTO members, including the EU, have been participating in these plurilateral negotiations known as the “Joint E-Commerce Initiative”, with the aim of agreeing on common rules to facilitate global digital trade.
EU DPA’s often include a commitment to permanently ban customs duties on electronic transmissions, building on a long-standing WTO moratorium that has been renewed periodically.
These agreements aim to remove barriers to digital trade by providing legal certainty and predictability for businesses involved in cross border digital transactions, fostering consumer trust, and promoting digital economic growth.
What next?
Taking stock of the existing DPAs and considering the complex geopolitical context we find ourselves in, it is worth reflecting on the EU’s digital diplomacy strategy. Progress has been made towards trade facilitation, as seen in the increased flows of Foreign Direct Investment in the sector.
However, there has been no notable progress in the creation of joint businesses and public structures for the development of innovation, as well as structures to produce goods and services in the digital economy.
Still, while the DPAs might not have matched the short-term ambitions of EU and the partner countries’ digital sector, it is important to see the value of these relationships as an attempt to build bridges towards long-lasting cooperation in this rapidly evolving tech field. In an interconnected world that is being challenged daily, the EU is trying to position itself as a key player in shaping the rules of today’s digital trade, while also exporting values and standards on privacy, transparency and sustainability to the global digital sphere with like-minded partners.
For now, we stay hopeful that these continued relationships will bring us closer to becoming a resilient and autonomous European Union.
