Canada's approach to digital trade (E-commerce)

Canada’s strategy to foster innovation, economic growth, and global connections through digital trade.

About digital trade

What is digital trade?

Where e-commerce was initially associated with purchasing goods electronically, digital trade now extends beyond traditional e-commerce, accounting for the purchase and sale of goods and services online, as well as non-traditional, non-monetary type transactions, such as those involving the delivery of free services in exchange for user data. By enabling the seamless exchange of goods, services, and data through digital channels, digital trade fosters global connectivity by connecting businesses and consumers worldwide, creating new ways of doing business, and unlocking opportunities for innovation and growth.

Canada sees digital trade as a continuation of commerce rather than a new sector. Existing bilateral, regional, and multilateral trade agreements and frameworks apply to this modern form of trade. As a cornerstone of Canada’s trade policy, digital trade helps Canadian businesses remain competitive in the global marketplace while addressing key challenges such as data protection and regulatory alignment.

Learn more about how to grow your global presence through e-commerce.

Canada’s digital trade strategy focuses on:

Facilitating the use of digital trade by businesses and consumers - Canada's trade policy aims to facilitate digital trade for consumers and businesses by establishing enabling rules through digital trade chapters in FTAs and engaging in broader trade policy on e-commerce through the WTO and other forums. Canada seeks to remove barriers to online trade and create a trustworthy environment for consumers and businesses by securing commitments from countries to permanently eliminate customs duties on electronic transmissions and digital products, and by promoting the use of interoperable electronic authentication methods and e-signatures to ensure their legal validity and reduce regulatory burdens on electronic transactions.
Addressing barriers to digital trade - Canada seeks to address key barriers to digital trade to: promote the free flow of information across borders to support global trade and innovation; prevent requirements for local data storage as a condition for doing business; and ensure countries do not require the transfer of or access to software source code for market access or business operations.
Promoting confidence and trust online - Canada aims to protect online consumers by balancing trade facilitation with domestic policy interests like privacy and consumer protection. Key policy issues include adopting consumer protection laws against online fraud, ensuring the protection of personal information, and implementing measures to protect consumers from unsolicited commercial electronic messages (spam) by requiring their consent.

Bilateral and regional free trade agreements (FTAs)

Bilateral and regional digital trade activities focus on strengthening trade relationships between Canada and individual countries or regional blocs to promote the growth of digital trade. Through agreements and collaborations, Canada ensures businesses can navigate through transparent and predictable legal frameworks, manage regulatory challenges and leverage international markets for success.

Digital trade chapters in Canada’s FTAs

Canada actively negotiates digital trade chapters in its FTAs to facilitate online trade and address specific barriers.

Canada has e-commerce or digital trade chapters in many of its FTAs:

Learn more about the area of digital trade in bilateral and regional trade negotiations and agreements.

Multilateral e-commerce activities

Multilateral digital trade initiatives focus on creating international frameworks that standardize and promote digital trade. Canada engages in various international organizations to shape digital trade policies and promote global cooperation.

Asia-Pacific Economic Cooperation (APEC)

As a founding member of APEC, Canada contributes to digital trade discussions via the Digital Economy Steering Group (DESG), promoting the development and use of digital trade by supporting predictable, transparent, and consistent digital trade environments in the Asia-Pacific region.

African Union (AU) Technical Working Group

Canada and the African Union Commission (AUC) decided to launch a Joint Technical Working Group on digital trade, which will serve as a platform to enhance collaboration between experts on digital issues.

Organisation for Economic Co-operation and Development (OECD)

Canada is an active participant on digital trade issues in the OECD through the Trade Committee.

G7/G20

Under the United Kingdom's presidency in 2021, the G7 agreed on digital trade principles to support open digital markets and oppose digital protectionism and authoritarianism. Canada was a key contributor to these principles, which include commitments to non-application of customs duties on electronic transmissions and data free flows with trust. The principles also address digital trade systems, trade facilitation, fair and inclusive governance, and labor safeguards.

Canada also actively participates in G20 discussions on digital trade as a global economic issue.

United Nations (UN)

Canada leverages the UN Commission on International Trade Law (UNCITRAL), particularly the UNCITRAL Model Law on Electronic Commerce (1996), to inform its provincial laws on electronic commerce.

World Trade Organization (WTO)

Canada collaborates with other member states through organizations such as the WTO to ensure that global digital trade policies reflect Canadian priorities. The WTO's Work Programme on Electronic Commerce (WPEC) has guided global discussions on digital trade since 1998. A key outcome of the work programme has been the Customs Duties Moratorium, which temporarily prohibits tariffs on electronic transmissions, through a Ministerial consensus decision not to apply customs duties on electronic transmissions for a period of two years. This two-year customs duties moratorium has been extended at each WTO Ministerial Conference, including most recently at the 13^th WTO Ministerial Conference (MC13) in March 2024. Canada supports the continuation of the WTO customs duty moratorium as way to ensure predictability and to advance cross-border digital trade among all WTO members.

Digital trade in Canada's trade agreements

WTO Joint Statement Initiative on e-commerce

Canada is a key participant in the Joint Statement Initiative (JSI) negotiations, working to establish a strong, rules-based framework for digital trade. In 2017, a group of 71 members, including Canada, signed the “Joint Statement on Electronic Commerce” at MC11 to launch WTO negotiations on the trade-related aspects of E-commerce. On July 26 2024, the Joint Statement Co-conveners, Australia, Japan and Singapore, confirmed that after five years of negotiations, the initiative reached a milestone with the agreement on a stabilized text for the WTO Agreement on Electronic Commerce. Together with other co-sponsors, Canada is seeking incorporation of the Agreement into the WTO framework.

Learn more about Canada’s work on the WTO Joint Statement Initiative on e-commerce and review the WTO agreement on electronic commerce (PDF version, 530 KB).

Digital Economy Partnership Agreement (DEPA)

The DEPA is a new type of international trade policy instrument, initiated by Chile, New Zealand and Singapore. It builds upon the digital trade or e-commerce chapters of existing free trade agreements, such as the CPTPP, adding enhanced commitments on facilitating digital trade and addressing a range of emerging digital economy issues such as artificial intelligence, digital identifies, and digital inclusion.

The DEPA is a stand-alone, open, plurilateral agreement which other WTO members are eligible to join. It is constructed as a living agreement, which allows for continual updates and modernization as required. Overall, the DEPA has been designed to complement and support the WTO negotiations on e-commerce, and to build on the digital economy work underway within the APEC, the OECD, and other international forums.

On May 22, 2022, Canada submitted a formal request to launch negotiations for Canada’s accession to the DEPA (see news release for further information) and Canada’s Accession Working Group was established on August 25, 2022.

Digital trade agreement (DTA)

Global Affairs Canada is considering developing a model Canadian DTA that would reflect Canada’s interests related to digital trade. A model Canadian DTA would be an instrument that allows Canada to negotiate bilateral agreements with other partner countries in the area of digital trade, and that is separate from a comprehensive free trade agreement

It would build upon previous international trade initiatives, including the electronic commerce/digital trade chapters of Canada’s existing free trade agreements, such as the CUSMA and the CPTPP. Through such an agreement, Canada could address emerging technology issues, as well as promote our interests in inclusive trade. In addition, a model agreement could enable Canada to effectively partner with developing countries, and in turn address shared interests related to technical assistance and capacity building.

Contact us

If you have questions or comments, please contact Global Affairs Canada at:

Intellectual Property, Digital Economy and Innovation Division
Global Affairs Canada
Lester B. Pearson Building
125 Sussex Drive
Ottawa, Ontario, K1A 0G2

Email: tmi@international.gc.ca

Date modified:: 2025-06-03

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