On February 6, 2025, the European Commission unveiled a groundbreaking Council Decision to establish the EU and Member States’ position for upcoming WTO negotiations. This decision aims to amend Annex 4 of the WTO Agreement, addressing the Agreement on Electronic Commerce and setting the stage for the first global framework governing Digital Trade.
The proposed amendment is poised to modernize international trade rules, focusing on the following key objectives:
- Seamless Digital Trade: Enabling efficient and barrier-free trade within and across borders.
- Trust-Building Measures: Provisions to enhance trust among trading partners and ensure secure transactions.
- Reliable Digital Trade Environment: Rules fostering stability and predictability for digital commerce.
- Permanent Prohibition of Customs Duties: Securing a ban on customs duties for electronic transmissions, promoting digital innovation and cost-effective trade.
- Developmental Focus: Supporting developing countries to actively participate and benefit from the global digital economy.
This decision represents a pivotal step toward modernizing the WTO’s legal framework, ensuring that global trade rules align with the digital economy’s rapid evolution. If approved, this framework will enhance international cooperation, boost digital trust, and create new opportunities for businesses and economies worldwide.
The EU’s leadership in this initiative underscores its commitment to shaping the future of global digital trade while fostering inclusivity for developing nations.
Summary by DigitalTrade4.EU