On 30 October 2026, a political agreement on the Digital Trade Agreement was announced in Montreal, Canada, during the 21st EU-Canada summit. This marks a significant step towards deepening economic relations between the EU and Canada and strengthening digital cooperation.
The new agreement will complement and modernise the existing digital trade framework in the EU-Canada Comprehensive Economic and Trade Agreement (CETA), adapting it to the needs of today’s digital economy. It will foster a more efficient, predictable and secure trading environment, benefiting businesses across the EU, particularly micro, small and medium-sized enterprises.
For Latvian businesses operating in information and communication technologies (ICT), high technology, clean technology, digital solutions and defence technologies, the Digital Trade Agreement will help to forge new and closer cooperation with Canadian businesses, promoting innovation, exports and competitiveness in international markets.
The agreement will help to reduce unjustified barriers to digital trade, improve legal certainty and create clearer conditions for cross-border online transactions. It will also facilitate the trustworthy cross-border flow of data, curb protectionist practices and strengthen consumer confidence in digital services. This will create more favourable conditions for innovation and business development in the digital environment.
The Digital Trade Agreement will also strengthen the strategic partnership between the EU and Canada, reaffirming both parties’ commitment to promoting open, fair and rules-based digital trade.
The next step will be the legal review and translation of the agreement text into all EU languages. The European Commission will then submit a proposal to the Council of the EU on the signing and conclusion of the agreement.
The potential for further growth in economic relations between the EU and Canada is demonstrated by the results of CETA’s implementation to date. Since CETA came into force in 2017, cross-border trade in services between the EU and Canada has almost doubled, rising by 97 per cent to reach EUR 50.8 billion in 2024, compared with EUR 25.6 billion in 2016.
Negotiations on the EU–Canada Digital Trade Agreement began in March 2026. The fifth and final round of formal negotiations took place in September 2026.