South Korea Joins Digital Trade Agreement Established by Singapore, New Zealand, and Chile

South Korea has officially become the fourth member of the Digital Economy Partnership Agreement (Depa), joining Singapore, New Zealand, and Chile in this digital trade initiative. Depa, which was enacted in January 2021, sets forth key regulations concerning digital trade and fosters economic collaboration on various digital issues such as digital identities, cross-border data flows, and artificial intelligence. The agreement aims to facilitate digital trade and electronic commerce, particularly for smaller businesses.

In a joint statement released by Depa members, South Korea’s accession is hailed as a significant milestone, underscoring the open and inclusive nature of the agreement. Members of Depa commit themselves to advancing the digital economy by advocating for comprehensive regulations on digital trade, the statement added. The expansion of Depa is seen as enhancing the agreement’s significance and creating more opportunities for collaboration.

South Korea’s accession follows the announcement of the substantial conclusion of discussions in June 2023 and the subsequent completion of legal procedures. Grace Fu, Singapore’s Minister for Sustainability and the Environment and Minister-in-charge of Trade Relations, expressed hopes of maintaining Depa’s openness and inclusivity, welcoming economies that meet its high standards. South Korean Trade Minister Cheong In-kyo pledged efforts to expand Depa’s reach and serve as a bridge between founding and new members as the first non-founding member.

Chile’s Undersecretary for International Economic Relations, Claudia Sanhueza, and New Zealand’s Trade Minister Todd McClay also extended their welcome to South Korea. McClay praised South Korea’s extensive experience in the digital economy, noting that its accession highlights Depa’s value as an agreement for economies with high ambitions for digital trade. Depa was initially signed by Chile, New Zealand, and Singapore in June 2020, with South Korea formally applying to join in September 2021. Other countries, including China, Canada, Costa Rica, and the United Arab Emirates, are currently negotiating to join the pact.

Depa represents one of several digital trade agreements pursued by Singapore in recent years, aimed at facilitating seamless digital connections between local companies and their international counterparts. These agreements seek to reduce operational costs, enhance business efficiency, and improve access to overseas markets. The expansion of Depa with South Korea’s accession is expected to further strengthen the digital trade ecosystem, providing new opportunities for collaboration, innovation, and economic growth. As discussions continue and more countries express interest in joining the agreement, Depa’s influence in shaping the global digital trade landscape is likely to grow, impacting businesses and economies worldwide.