Digital Trade in the Australia – EU FTA: A Future-Forward Perspective

Abstract

This paper assesses the significance of the Digital Trade Chapter of the Australia – EU FTA and focuses on the disciplines necessary to boost digital trade. In the ongoing negotiations, the EU and Australia are likely to agree upon conventional digital trade disciplines (e.g., e-signatures, e-authentication, paperless trading, customs duties on electronic transmissions) as well as provisions on online consumer trust and spam, and more contemporary disciplines on source code disclosure and data localization. These disciplines can undoubtedly contribute to boosting digital trade between Australia and the EU. However, data flows and data protection will remain a sticky issue in the ongoing negotiations, given the differences in data protection laws of the EU and Australia, and the EU’s exceptionally defensive approach in data protection. Instead of bypassing such issues, the FTA negotiators should view the negotiations as an opportunity to build mutual consensus and foster cooperation in formulating standards and mechanisms for data transfer. Further, the negotiations provide an opportunity for adopting deeper disciplines on digital trade facilitation that can nurture start-ups as well as experimenting with novel models for regulatory cooperation in nascent policy areas including AI ethics and open government data.