“It’s extremely gratifying that negotiations with South Korea have been successful. Conditions for Swedish and European companies trading with South Korea will now improve. For example, provisions on the recognition of digital signatures and prohibition of local data retention requirements are being introduced in the agreement. The agreement will also benefit consumers in Sweden, the EU and South Korea by improving consumer protection for e-commerce. This is a concrete step forward for the EU’s free trade agenda and an important signal at a time of increased protectionism,” says Minister for International Development Cooperation and Foreign Trade Benjamin Dousa.

The agreement complements the EU’s and South Korea’s 2011 free trade agreement with modern and binding rules on digital trade. These rules aim to increase transparency and predictability for businesses, promote a secure on-line environment for consumers and counteract digital trade barriers. Examples of such provisions include the recognition of digital signatures, consumer protection for e-commerce and bans on requirements for local data retention. The agreement thereby strengthens and promotes bilateral trade.

Digital trade has risen sharply in recent years and now accounts for around 25 per cent of total global trade. The EU is the world’s largest exporter and importer of services that can be provided digitally. The agreement contributes to diversifying the EU’s trade relationships and strengthening the Union’s competitiveness and role in world trade.

“The agreement is the culmination of Swedish efforts during its EU presidency in 2023 when we prioritised digital trade and pushed for the EU to open negotiations,” adds Mr Dousa.