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Trade and Economic Security

EU and Canada conclude negotiations on a digital trade agreement

Today, the European Union and Canada concluded negotiations on a landmark Digital Trade Agreement (DTA) at the EU-Canada Leaders’ Summit in Montreal. 

  • News article
  • 30 October 2026
  • Brussels
  • Directorate-General for Trade and Economic Security
  • 3 min read

The agreement marks a major step in modernising the EU-Canada bilateral relationship. It complements the Comprehensive Economic and Trade Agreement (CETA), provisionally applied since 2017, and will help keep the trade relationship fit for purpose in an increasingly digital global economy. 

By concluding the negotiations for the agreement, the EU and Canada reaffirm their shared commitment to deeper economic cooperation, innovation, and a secure, open and trusted digital environment. The agreement will reduce unjustified barriers, support more resilient economic relations, and reinforce cooperation between like-minded partners. 

The DTA establishes clear and predictable rules for businesses, while maintaining strong safeguards for people and their rights. 

The agreement brings significant benefits for companies by facilitating digital trade in goods and services, and by ensuring a predictable environment for cross-border business. It prevents barriers that slow down operations, allowing businesses to trade internationally with greater confidence and efficiency. A key element is the framework for trusted cross-border data flows between the EU and Canada, preventing unjustified restrictions that could disrupt business. This is vital for companies across all sectors, particularly SMEs. Beyond data flows, the agreement includes rules that make digital trade simpler and more efficient. It promotes, for instance, e-contracts, e-signatures and e-invoices, reducing administrative burdens and transaction costs.

The Agreement will also enhance consumer safety and confidence in the digital economy through robust online consumer protection rules. For example, the agreement includes provisions to prevent unsolicited commercial electronic messages, and mandates that commercial messages clearly identify the sender and provide ways for recipients to stop further communication, ensuring transparency and control. Additionally, the agreement addresses the need to protect consumers from misleading, fraudulent, and deceptive practices.

With negotiations only launched earlier this year, at the fifth meeting of the CETA Joint Committee on 5 March 2026, this step demonstrates the determination of both sides to advance the partnership and deliver concrete results to pave the way for the Alliance for the Future.

Next steps

The political conclusion marks the end of the negotiations for the EU-Canada Digital Trade Agreement. The EU and Canada will now follow their respective procedures to work towards the formal signature and conclusion of the agreement. On the EU side, this will include legal scrubbing and translations into all EU languages, before the proposal can be submitted to the Council and the European Parliament.

Background

The EU-Canada DTA underpins the strong and trustworthy partnership between the two regions, building on the CETA. From 2016 to 2025, bilateral trade in goods and services between the EU and Canada grew by 80%, from €72.1 billion in 2016 to more than €130 billion in 2025.

According to Eurostat, bilateral trade in digitally delivered services reached €19,8 billion in 2025: €11,2 billion in EU exports to Canada and €8,6 billion in EU imports from Canada. There is an upwards trend in the EU-Canada digital trade relationship, and the DTA will deliver further growth and closer cooperation.

The DTA also complements the EU-Canada Digital Partnership (established in December 2023), which provides a framework for regulatory and research cooperation. By creating binding commitments, the new EU-Canada DTA will ensure legal certainty for businesses and consumers, and foster a secure and trustworthy online environment. 

For more information

EU trade relations with Canada

Digital Trade Agreements

More on EU Digital Trade

EU-Canada Digital Partnership

Publication date
30 October 2026
Author
Directorate-General for Trade and Economic Security
Location
Brussels
Country or region
  • Canada
Trade topics
  • Negotiations and agreements