These modules must be building blocks. Countries could choose to dock directly with DEPA and expand the agreement with new members. Or governments may decide to take and use some or all of the modules in different environments. This includes inserting them directly into other trade agreements or choosing to adapt national policies to the DEPA. The key to DEPA lies not only in the contracting parties, but also in its potential for expansion. While new countries can join the agreement, each module of the DEPA can easily be inserted into other trade agreements. Countries doing business with signatories may also be encouraged to align their national policies with those of dePA. The Digital Economy Partnership Agreement (DEPA) was concluded last week between Chile, New Zealand and Singapore. This is a new type of trade agreement that aims to facilitate trade and create a framework for the digital economy. In December 2020, Canada notified the ODA parties of its interest in joining the agreement. In February of this year, Canada formally began exploratory talks with these parties.
A month later, Canada began public consultations with individuals and stakeholders on the current text of ODA and how ODA could be updated. Consultations concluded in May, but Canada`s exploratory discussions with ODA members are ongoing. Module 8 includes an article on fintech collaborations in which signatories not only set standards, but also commit to „actively promote the development of fintech solutions“ and promote „cooperation between companies“ in the industry, including with startups. And an article on artificial intelligence calls on signatories to promote the adoption of AI governance frameworks to facilitate the ethical adoption of AI technologies. And finally, in Module 9, there is a commitment to data innovation through open government data and even data sandboxes and regulation (something that is not typically discussed or approved by the FHA). This commitment to actively innovate at the next frontiers of technology and to enable updates and modernizations as membership grows makes DEPA a living agreement. Finally, the agreement contains a dispute settlement mechanism (Module 15). However, most of the work elements of such a system still need to be developed or, once completed, included in the annexed texts that have not yet been published (15.3). It was created as a „live“ agreement, which means it can be continually updated and modernized as needed. The current signatories to ODA – Chile, New Zealand and Singapore – already enjoy access to the markets of their respective economies through their accession to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).
In a way, dePA can be seen as a minor agreement with the CPTPP, building on its chapter on e-commerce while penetrating uncharted territories such as e-payments, e-invoicing and new technologies such as AI and fintech. With the aim of creating international standards for the rapidly evolving digital economy and facilitating digital trade among signatories, DEPA has the potential to pave the way for economies around the world. The agreement also establishes non-discrimination rules for digital products in Module 3, which means that neither party to the agreement can privilege one party`s digital products over another. This is particularly true of a new wave of digital products defined in the agreement as „computer programs, text, videos, images, sound recordings or other products that are digitally encoded, produced for sale or commercial distribution and that can be transmitted electronically“, with a major exception for the broadcasting industry – which is not entirely surprising given the historical protection. of the cultural industry. DEPA is a new international trade partnership agreement that aims to promote digital trade by addressing issues related to the digital economy, including digital inclusion, data circulation and protection, and artificial intelligence. In June 2020, Chile, New Zealand and Singapore signed the Digital Economic Partnership Agreement (DEPA), an innovative digital-focused trade agreement. Since then, many economies have expressed interest in joining the new pact. On October 5, 2021, South Korea signed documents formally requesting membership in the agreement. South Korea`s request provides an opportunity to examine the world`s first digital trade agreement and its potential impact on Canada. While this is not the first agreement to establish digital rules, dePA remains a first agreement of its kind. In contrast, the CPTPP includes its own chapter on e-commerce, but focuses on „old-fashioned“ digital issues such as trade facilitation through paperless trade and online consumer protection; Elements that make the existing trading system more compatible with the digital age, but that do not feed into the discussion and adaptation of the technologies of the next frontier.
The importance of DEPA does not lie in the three current members, who have already largely agreed to abide by the same commitments and principles as part of their accession to the Comprehensive and Progressive Trans-Pacific Partnership (CPTPP). Beehive Press Release – Digital Trade Agreement Responds to COVID-19 in a Timely Manner (External Link) The spread of DEPA is essential – if non-members considering problematic rules for the digital economy could be encouraged to join, the agreement is seen as a critical turning point for policy on digital issues. The modules of the agreement, which take up and refine existing rules, in particular those of the CPTPP, are likely to be the most beneficial for businesses. It is particularly welcome that electronic payments (2.7) are included directly in ODA frameworks. Businesses cannot trade across borders in the digital economy if they cannot be paid efficiently and profitably. The special features of the module will need to be further developed in the future, as most of the current language is desirable („should at best make an effort“). As the global digital transformation accelerates, many leading countries are going it alone. At the same time, the EU, the US and China have disproportionate power to unilaterally set the standards that will determine the future of the digital space. But South Korea`s formal request to join DEPA means the deal is gaining membership and traction. Finally, there is a strength in the numbers, and depa provides a forum for small economies like Canada and South Korea to find out what works in the digital economy and to be part of the international conversation.
The agreement also covers two areas of e-commerce that are not covered by the CPTPP: e-invoicing and e-payments, which are also defined in Module 2. Without going so far as to impose regulations on its signatories, depa recognizes the growing importance of these elements of the global economy and sets interoperable standards through collaboration based on common e-commerce principles. · Digital product processing and related topics Overall, dePA represents a promising start for the creation of a harmonised framework for the digital economy. It provides flexibility to allow members to adapt the rules to local circumstances where clearly justified and should create the conditions for greater adoption of the modules by other members. Module 3 promises that digital products will not be subject to tariffs in depa countries (3.2), as companies have fewer problems of discrimination because national treatment is guaranteed (3.3). These are important promises for businesses because they increase security and reduce risk. The next steps and a timetable for recent rounds of negotiations DePA was signed by New Zealand, Chile and Singapore on Friday 12 June NZT in a fully virtual online signing ceremony. The data module contains a section on the importance of the protection of personal data (4.2) with the basic requirement to have a framework at national level in line with a set of general principles set out in the DEPA. Share your views or contact us if you have any questions Instead, depa is important if and when more governments agree to use the modules or adapt domestic policy to their framework and structure.
Olivia Adams is a postdoctoral researcher in the Business Asia team at the Asia Pacific Foundation of Canada and a graduate of the Norman Paterson School of International Affairs at Carleton University. Beehive Press Release – New Zealand concludes trade negotiations with Singapore and Chile on the digital economy (external link) As shown in our parallel article Talking Trade published today, governments have been working on several options to try to develop rules for the digital world. The solutions range from the unilateral approach to the multilateral approach. In Article 2.7 of the DEPA on electronic payments, the Parties agree to promote „the adoption and application of internationally recognised standards, the promotion of interoperability and interconnection of payment infrastructures, and the promotion of useful innovation and competition in the payments ecosystem“. These standard-setting and innovation efforts reflect the spirit of the agreement while reflecting a global challenge: striking the right balance between regulation and innovation. It may be that an aspect or provision of the DEPA may be of disproportionate importance in the future that cannot be foreseen today. For example, rules on non-discrimination of digital products (3.3) could be crucial for businesses as the digital economy continues to expand into areas that are not yet conceivable. Beehive Press Release – New Zealand joins Chile and Singapore in discussing a partnership for the digital economy (external link) The Business Trust Module contains two elements of the CPTPP, including the promise to end spam or „spam“ (6.2) and ensure consumer protection online (6.3). .