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

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The Australia-European Union Free Trade Agreement

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 localisation. 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.

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Notes

  1. 1.

    Department of Foreign Affairs and Trade (‘DFAT’), Australia-European Union Free Trade Agreement, www.dfat.gov.au/trade/agreements/negotiations/aeufta/Pages/default#:~:text=Australia%20and%20the%20European%20Union,source%20of%20foreign%20investment1 (last accessed 9 September 2021).

  2. 2.

    The reports of these negotiation rounds are posted by the DFAT and the European Commission (‘EC’). See DFAT, A-EUFTA News, www.dfat.gov.au/trade/agreements/negotiations/aeufta/Pages/aeufta-news (last accessed 9 September 2021); EC, Commission Reports on Latest Negotiating Round with Australia, https://trade.ec.europa.eu/doclib/press/index.cfm?id=2151 (last accessed 9 September 2021).

  3. 3.

    DFAT, Australia-European Union Free Trade Agreement, www.dfat.gov.au/trade/agreements/negotiations/aeufta/Pages/default#:~:text=Australia%20and%20the%20European%20Union,source%20of%20foreign%20investment1 (last accessed 9 September 2021).

  4. 4.

    These statistics refer to EU27 and the United Kingdom. See DFAT, Australia-European Union Free Trade Agreement, www.dfat.gov.au/trade/agreements/negotiations/aeufta/Pages/default#:~:text=Australia%20and%20the%20European%20Union,source%20of%20foreign%20investment1 (last accessed 9 September 2021).

  5. 5.

    EC, Client and Supplier Countries of the EU27 in Merchandise Trade (value %), https://trade.ec.europa.eu/doclib/docs/2006/september/tradoc_122530.pdf (last accessed 9 September 2021).

  6. 6.

    See https://www.dfat.gov.au/geo/europe/european-union/Pages/european-union-brief (last accessed 9 September 2021).

  7. 7.

    See https://www.dfat.gov.au/trade/agreements/negotiations/aeufta/Pages/default (last accessed 9 September 2021).

  8. 8.

    DFAT, Australia-European Union Free Trade Agreement, www.dfat.gov.au/trade/agreements/negotiations/aeufta/Pages/default#:~:text=Australia%20and%20the%20European%20Union,source%20of%20foreign%20investment1 (last accessed 9 September 2021).

  9. 9.

    This term encompasses B2B, B2C and C2C transaction, thus covering all forms of commercial transactions in the supply chain. The Organisation for Economic Cooperation and Development (OECD) has also developed a similar definition of “digital trade”. See OECD, The Impact of Digitalisation on Trade, http://www.oecd.org/trade/topics/digital-trade/ (last accessed 9 September 2021).

  10. 10.

    The term PTAs refers to all bilateral, regional, and megaregional trade agreements outside of the WTO. See generally Burri and Polanco (2020).

  11. 11.

    Monteiro and Teh (2017), pp. 5–6.

  12. 12.

    Burri and Polanco (2020), pp. 193–196.

  13. 13.

    Burri and Polanco (2020), pp. 193–196.

  14. 14.

    See https://www.dfat.gov.au/trade/agreements/negotiations/aeufta/Pages/summary-of-negotiating-aims-and-approach (last accessed 9 September 2021).

  15. 15.

    Lee-Makiyama (2018), pp. 212, 214.

  16. 16.

    See, e.g., European Parliament, Towards a Digital Trade Strategy, Doc no A8-0384/2017 (29 November 2017), https://www.europarl.europa.eu/doceo/document/A-8-2017-0384_EN.pdf (last accessed 9 September 2021).

  17. 17.

    Unlike most of its previous PTAs, the EU uses the title “digital trade” for the relevant chapter, instead of electronic commerce. Some scholars believe digital trade signifies a broader scope of economic activities as compared to electronic commerce. See Burri (2016).

  18. 18.

    EC, Draft Proposal for Australia – EU FTA (Digital Trade Chapter), http://trade.ec.europa.eu/doclib/docs/2018/december/tradoc_157570.pdf (last accessed 9 September 2021).

  19. 19.

    See Report of the 7th round of negotiations for a Free Trade Agreement between the European Union and Australia, 4–15 May 2020, https://trade.ec.europa.eu/doclib/docs/2020/may/tradoc_158762.pdf (last accessed 9 September 2021).

  20. 20.

    See generally https://www.dfat.gov.au/trade/services-and-digital-trade/Pages/e-commerce-and-digital-trade#:~:text=Digital%20trade%20is%20an%20increasingly,as%20further%20grow%20our%20economy (last accessed 9 September 2021); European Parliament, Towards a Digital Trade Strategy, Doc no A8-0384/2017 (29 November 2017), https://www.europarl.europa.eu/doceo/document/A-8-2017-0384_EN.pdf (last accessed 9 September 2021).

  21. 21.

    See generally Depart of Industry, Science, Energy and Resources (Australian Government), Australia’s Tech Future (2018), https://www.industry.gov.au/sites/default/files/2018-12/australias-tech-future.pdf (last accessed 9 September 2021), p. 7; Australian Trade and Investment Commission, Investment opportunities in digital technologies in Australia (2016) , https://www.austrade.gov.au/ArticleDocuments/5567/Investment-opportunities-in-Australian-Digital-technologies.pdf.aspx (last accessed 9 September 2021); Parliament of the Commonwealth of Australia, Trade and the digital economy. Joint Standing Committee on Trade and Investment Growth (2018); DFAT, Australia’s Cyber Engagement Strategy (2017); Meltzer (2018).

  22. 22.

    See generally Parliament of the Commonwealth of Australia, Trade and the digital economy. Joint Standing Committee on Trade and Investment Growth (2018).

  23. 23.

    Depart of Industry, Science, Energy and Resources (Australian Government), Australia’s Tech Future (2018), https://www.industry.gov.au/sites/default/files/2018-12/australias-tech-future.pdf (last accessed 9 September 2021) (2018), pp. 6–7.

  24. 24.

    Depart of Industry, Science, Energy and Resources (Australian Government), Australia’s Tech Future (2018), https://www.industry.gov.au/sites/default/files/2018-12/australias-tech-future.pdf (last accessed 9 September 2021), pp. 7–8; Meltzer (2018), p. iii.

  25. 25.

    Along with cybersecurity, cybercrime, international security and cyberspace, internet governance and cooperation, human rights, and democracy online, technology for development, and cyber-affairs, digital trade is one of the pillars of Australian International Cyber Engagement Strategy. See DFAT, Australia’s Cyber-Engagement Strategy (2017).

  26. 26.

    See https://www.dfat.gov.au/trade/agreements/negotiations/aeufta/Pages/summary-of-negotiating-aims-and-approach (last accessed 9 September 2021).

  27. 27.

    DFAT, 2019 Progress Report, https://www.dfat.gov.au/publications/international-relations/international-cyber-engagement-strategy/aices/chapters/2019_progress_report.html (last accessed 9 September 2021).

  28. 28.

    See generally European Parliament, Towards a Digital Trade Strategy, Doc no A8-0384/2017 (29 November 2017), https://www.europarl.europa.eu/doceo/document/A-8-2017-0384_EN.pdf (last accessed 9 September 2021).

  29. 29.

    See Sect. 3.1.

  30. 30.

    European Commission, Trade for All (2015), p. 12, 13. See also Towards a Digital Trade Strategy.

  31. 31.

    WTO, Joint Statement on Electronic Commerce, WTO Doc WT/L/1056 (25 January 2019); WTO, Joint Statement on Electronic Commerce, WTO Doc WT/MIN(17)/60 (13 December 2017).

  32. 32.

    Framework Agreement, Preamble.

  33. 33.

    Framework Agreement, art. 40.

  34. 34.

    Framework Agreement, art. 11, art. 36.

  35. 35.

    Framework Agreement, art. 36(3).

  36. 36.

    European Parliament, Towards a Digital Trade Strategy, Doc no A8-0384/2017 (29 November 2017), https://www.europarl.europa.eu/doceo/document/A-8-2017-0384_EN.pdf (last accessed 9 September 2021), pp. 6, 8.; DFAT, Internet Governance and Cooperation, https://www.dfat.gov.au/publications/international-relations/international-cyber-engagement-strategy/aices/chapters/part_5_internet_governance_and_cooperation.html (last accessed 9 September 2021).

  37. 37.

    EPIC consortium, Getting AI Right: Australian-Europe collaboration potential to maximise AI. EPIC Project policy brief #4 (2019).

  38. 38.

    EPIC consortium, Getting AI Right: Australian-Europe collaboration potential to maximise AI. EPIC Project policy brief #4 (2019), p. 5.

  39. 39.

    Willemyns (2020), p. 229.

  40. 40.

    See https://www.dfat.gov.au/trade/services-and-digital-trade/Pages/e-commerce-and-digital-trade (last accessed 9 September 2021).

  41. 41.

    Willemyns (2020), p. 228.

  42. 42.

    See, e.g., EU-Canada Comprehensive Economic and Trade Agreement (“CETA”); EU-Mexico Globalised Agreement; EU-UK TCA.

  43. 43.

    See, e.g., European Union–South Korea Free Trade Agreement (“EU-KR FTA”); EU-Singapore Free Trade Agreement (“EU-SG FTA”).

  44. 44.

    See, e.g., CETA, art. 16.2.1; EU-Vietnam Free Trade Agreement (“EU-VN FTA”), art. 8.50.

  45. 45.

    See, e.g., CETA, art. 16.2.2.

  46. 46.

    Mexico – EU Globalised Agreement, art. 1.2 (Chapter on Digital trade); EU-UK TCA, art. DIGIT.3. Similar provisions are also included in the EU-Singapore FTA, EU-Japan Economic Partnership Agreement (“EU-Japan EPA”) and EU-Vietnam FTA.

  47. 47.

    EU-UK TCA, art. DIGIT.4.

  48. 48.

    EU-SG FTA, art. 8.57.3.

  49. 49.

    EU-Japan EPA, art. 8.70.3.

  50. 50.

    See, e.g., Japan – EU EPA, art. 8.70.5; Mexico – EU Globalised Agreement, art. 1.4 (Chapter on Digital Trade).

  51. 51.

    EU-UK TCA, art. DIGIT.2.2.

  52. 52.

    Mexico – EU Globalised Agreement, art. 1.4(f) (Chapter on Digital Trade).

  53. 53.

    See, e.g., EU-Japan EPA, art. 8.75(1); Mexico – EU Globalised Agreement, art. 4.1 (Chapter on Digital Trade).

  54. 54.

    See, e.g., EU-Japan EPA, art. 8.75(2); Mexico – EU Globalised Agreement, art. 4.2 (Chapter on Digital Trade).

  55. 55.

    EU-UK TCA, art. DIGIT.9.1.

  56. 56.

    EU-UK TCA, art. DIGIT.9.2.

  57. 57.

    Mexico – EU Globalised Agreement, art. 10 (Chapter on Digital Trade). However, this provision is not binding as the language used is “shall endeavour to ensure”.

  58. 58.

    See, e.g., Mexico – EU Globalised Agreement, arts. 5, 6 (Chapter on Digital Trade); EU-Japan EPA, arts. 8.76, 8.77.

  59. 59.

    See, e.g., Mexico – EU Globalised Agreement, art. 6.4 (Chapter on Digital Trade).

  60. 60.

    EU-Singapore FTA, art. 8.60.1.

  61. 61.

    See, e.g., CETA, art. 16.3.

  62. 62.

    See, e.g., USMCA, art. 16.3.1; SADEA, art. 5.

  63. 63.

    See, e.g., EU-JAPAN EPA, art. 8.72; EU-SG FTA, art. 8.78; Mexico – EU Globalised Agreement, art. 3 (Chapter on Digital Trade); EU -VN FTA, art. 8.51; EU-UK TCA, art. DIGIT.8.

  64. 64.

    Joint Statement on Electronic Commerce. EU Proposal for WTO Disciplines and Commitments Relating to Electronic Commerce, INF/ECOM/22, 26 April 2019, para. 2.5.

  65. 65.

    See, e.g., CETA art. 16.4.

  66. 66.

    EU-SG FTA, art. 8.57.4; EU-Korea FTA, art. 8.57.4; EU-CARIFORUM FTA, art. 119.2. See also EU-Japan EPA, art. 8.78.3.

  67. 67.

    EU CARIFORUM FTA, art. 197.

  68. 68.

    EU CARIFORUM FTA, art. 199(a).

  69. 69.

    EU CARIFORUM FTA, art. 199(a).

  70. 70.

    EU CARIFORUM FTA, art. 199(a).

  71. 71.

    EU-UK TCA, art. DIGIT.7. The term ‘general application’ refers to ‘conditions formulated in objective terms that apply horizontally to an unidentified number of economic operators and thus cover a range of situations and cases’. See EU-UK TCA, art. DIGIT.7, n.34.

  72. 72.

    See, e.g., Mexico – EU Globalised Agreement, art. 7 (Chapter on Digital Trade); EU-Japan EPA, art. 8.78.

  73. 73.

    See, e.g., Mexico – EU Globalised Agreement, art. 8 (Chapter on Digital Trade); EU-Japan EPA, art. 8.79.

  74. 74.

    See, e.g., EU-Japan EPA, art. 8.73; Mexico – EU Globalised Agreement, art. 9 (Chapter on Digital Trade).

  75. 75.

    CPTPP, art. 14.17.

  76. 76.

    Mexico – EU Globalised Agreement, art. 9.2 (a) (Chapter on Digital Trade).

  77. 77.

    Mexico – EU Globalised Agreement, art. 9.3 (Chapter on Digital Trade).

  78. 78.

    Mexico – EU Globalised Agreement, art. 9.2 (b) (Chapter on Digital Trade).

  79. 79.

    Mexico – EU Globalised Agreement, art. 9.2 (c) (Chapter on Digital Trade).

  80. 80.

    EU-Japan EPA, art. 8.73.1.

  81. 81.

    EU-Japan EPA, art. 8.73.2.

  82. 82.

    EU-Japan EPA, art. 8.73.3.

  83. 83.

    CETA, art. 16.6; EU-CARIFORUM FTA, art. 120; EU-Singapore FTA, art. 8.61 EU -VN FTA, art. 8.52.

  84. 84.

    Mexico – EU Globalised Agreement, art. 11 (Chapter on Digital Trade).

  85. 85.

    EU-KOREA FTA, art. 7.49(e).

  86. 86.

    EU-Japan EPA, art. 16.16.

  87. 87.

    EU-UK TCA, art. DIGIT.6.

  88. 88.

    EU-Japan EPA, art. 8.81; Mexico – EU Globalised Agreement, art. XX (Chapter on Digital Trade).

  89. 89.

    See, e.g., EU-KR FTA, art. 7.25.3; EU-SG FTA, art. 8.21.3; EU-VN FTA art. 8.22.3; EU-UK TCA, art. DIGIT.7; EU-CARIFORUM FTA, art. 188.

  90. 90.

    EU-KR FTA, art. 7.25.4; EU-SG FTA, art. 8.21.4; EU-VN FTA art. 8.22.4.

  91. 91.

    See generally EC, Services and investment in EU trade deals Using “positive” and “negative” lists, April 2017, http://trade.ec.europa.eu/doclib/docs/2016/april/tradoc_154427.pdf (last accessed 9 September 2021).

  92. 92.

    Elms (2017), p. 47.

  93. 93.

    Elijah (2017), p. 60.

  94. 94.

    EC, Services and investment in EU trade deals Using “positive” and “negative” lists, April 2017, http://trade.ec.europa.eu/doclib/docs/2016/april/tradoc_154427.pdf (last accessed 9 September 2021).

  95. 95.

    See, e.g., HK-AFTA, art. 11.1.1; IAEPA, art. 13.2.1; PAFTA, art. 13.2.1; CPTPP, art. 14.2.1; ChAFTA, art. 12.1 (only recognising the economic growth and opportunities provided by e-commerce and the importance of avoiding barriers to e-commerce); JAEPA, art. 13.1 (also recognises the principle of technology neutrality in e-commerce, similar to the Japan-EU EPA).

  96. 96.

    See, e.g., CPTPP, art. 14.2.2; HK-AFTA, art. 11.1.2; IAEPA, art. 13.2.2; PAFTA, art. 13.2.2; SADEA, art. 2.1.

  97. 97.

    See, e.g., CPTPP, art. 14.2.3; HK-AFTA, art. 11.1.3; IAEPA, art. 13.2.3, art. 13.2.4; PAFTA, art. 13.2.3; KAFTA, art. 15.1; SADEA, art. 2.2.

  98. 98.

    See, e.g., HK-AFTA, art. 11.2 (Definition of covered persons); CPTPP, art. 14.1 (Definition of covered persons).

  99. 99.

    See, e.g., JAEPA, art. 13.4; PAFTA, art. 13.4; CPTPP, art. 14.4; SADEA, art. 6.

  100. 100.

    See, e.g., JAEPA, art. 13.4.

  101. 101.

    PAFTA, art. 13.4.4; CPTPP, art. 14.4.4; SADEA, art. 6.4.

  102. 102.

    See, e.g., HK-AFTA, art. 11.3; IAEPA, art. 13.5; See also ChAFTA, art. 12.6; JAEPA, art. 13.6; PAFTA, art. 13.6; CPTPP, art. 14.6; SADEA, art. 9.

  103. 103.

    JAEPA, art. 13.6.4.

  104. 104.

    See, e.g., HK-AFTA, art. 11.4.1; IAEPA, art. 13.9.1; PAFTA, art. 13.5.1; CPTPP, art. 14.5.1; KAFTA, art. 15.4.1; SADEA, art. 8.2.

  105. 105.

    ChAFTA, art. 12.5.1.

  106. 106.

    SADEA, art. 8.4.

  107. 107.

    See, e.g., HK-AFTA, art. 11.4.2; IAEPA, art. 13.9.2; PAFTA, art. 13.5.2; CPTPP, art. 14.5.2. See also ChAFTA, art. 12.5.2 (language is slightly different).

  108. 108.

    See, e.g., HK-AFTA, art. 11.10; IAEPA, art. 13.4; JAEPA, art. 13.9; PAFTA, art. 13.9.

  109. 109.

    ChAFTA, art. 12.9.1.

  110. 110.

    SADEA, art. 12.1, art. 12.2. In addition, it has agreed on other provisions including single electronic window and develo** data exchange systems for trade administration documents.

  111. 111.

    See, e.g., CPTPP, art. 14.3; HK-AFTA, art. 11.6; PAFTA, art. 13.3; SADEA, art. 5.

  112. 112.

    See, e.g., JAEPA, art. 13.3; KAFTA, art. 15.3.

  113. 113.

    ChAFTA, art. 12.3.1.

  114. 114.

    ChAFTA, art. 12.3.2.

  115. 115.

    See, e.g., HK-AFTA, art. 11.5; IAEPA, art. 13.6; PAFTA, art. 13.7; CPTPP, art. 14.7. See also SADEA, art. 15.

  116. 116.

    See, e.g., JAEPA, art. 13.7; ChAFTA, art. 12.7.

  117. 117.

    See, e.g., HK-AFTA, art. 11.11; IAEPA, art. 13.8; PAFTA, art. 13.13; CPTPP, art. 14.14; KAFTA, art. 15.9; SADEA, art. 19.

  118. 118.

    CPTPP, art. 14.8.2.

  119. 119.

    See, e.g., HK-AFTA, art. 11.9.2; IAEPA, art. 13.7.2; PAFTA, art. 13.8.1. See also JAEPA, art. 13.8; KAFTA, art. 15.8. The language in ChAFTA, art. 12.8.2 is slightly different (“In the development of data protection standards, each Party shall, to the extent possible, take into account international standards and the criteria of relevant international organisations.”).

  120. 120.

    See, e.g., HK-AFTA, art. 11.9.2; IAEPA, art. 13.7.2; PAFTA, art. 13.8.2.

  121. 121.

    CPTPP, art. 14.8.2, n 6.

  122. 122.

    SADEA, art. 17.2, n.11.

  123. 123.

    USMCA, art. 19.8.2.

  124. 124.

    SADEA, art. 17.2.

  125. 125.

    See, e.g., HK-AFTA, art. 11.9.5; IAEPA, art. 13.7.4; PAFTA, art. 13.8.5; CPTPP, art. 14.8.5.

  126. 126.

    See, e.g., HK-AFTA, art. 11.9.3; IAEPA, art. 13.7.3; PAFTA, art. 13.8.4; CPTPP, art. 14.8.4.

  127. 127.

    See, e.g., HK-AFTA, art. 11.9.4; IAEPA, art. 13.10.2.

  128. 128.

    SADEA, art. 17.8.

  129. 129.

    CPTPP art. 14.11, art. 14.13.

  130. 130.

    See, e.g., HK-AFTA, art. 11.7.2; IAEPA, art. 13.11.2; PAFTA, art. 13.11.2; SADEA, art. 23.

  131. 131.

    The definition of covered persons in these PTAs excludes financial service providers.

  132. 132.

    See, e.g., HK-AFTA, art. 11.8.2; IAEPA, art. 13.12.2; PAFTA, art. 13.12.2.

  133. 133.

    See, e.g., HK-AFTA, art. 11.7.3, art. 11.8.3; IAEPA, art. 13.11.3(a), art. 13.12.3(a); PAFTA, art. 13.11.3, art. 13.12.3.

  134. 134.

    See, e.g., IAEPA, art. 13.11.3(b), art. 13.12.3(b).

  135. 135.

    HK-AFTA, art. 11.15.1; art. 11.15.2; SADEA, art. 25.2.

  136. 136.

    HK-AFTA, art. 11.15.2.

  137. 137.

    HK-AFTA, art. 11.15.3. See also HK-AFTA, art. 11.15.4; SADEA, art. 25.3.

  138. 138.

    HK-AFTA, art. 11.15.5.

  139. 139.

    See CPTPP art. 14.17.

  140. 140.

    See, e.g., HK-AFTA, art. 11.12.1; IAEPA, art. 13.13.1; PAFTA, art. 13.16.1.

  141. 141.

    See, e.g., HK-AFTA, art. 11.12.2; IAEPA, art. 13.13.2; PAFTA, art. 13.16.2.

  142. 142.

    See, e.g., HK-AFTA, art. 11.12.3(a); IAEPA, art. 13.13.3(a); PAFTA, art. 13.16.3(a).

  143. 143.

    See, e.g., HK-AFTA, art. 11.12.3(b); IAEPA, art. 13.13.3(b); PAFTA, art. 13.16.3(b).

  144. 144.

    See, e.g., HK-AFTA, art. 11.12.3(c); SADEA, art. 28.3.

  145. 145.

    See, e.g., HK-AFTA, art. 11.12.4; IAEPA, art. 13.13.4; PAFTA, art. 13.16.4.

  146. 146.

    IAEPA, art. 13.13.5.

  147. 147.

    CPTPP, art. 14.10.

  148. 148.

    PAFTA, art. 13.10; SADEA, art. 20.

  149. 149.

    See, e.g., HK-AFTA, art. 11.13; IAEPA, art. 13.3; CPTPP, art. 14.15 and art. 14.16; ChAFTA, art. 12.10. See also JAEPA, art. 13.10; PAFTA, art. 13.14, art. 13.15 (cooperation on cybersecurity). See further SADEA, art. 16 (cooperation on competition policy), art. 33, art. 32(fintech and regtech cooperation).

  150. 150.

    SADEA, art. 10.

  151. 151.

    SADEA, art. 11.

  152. 152.

    SADEA, art. 13.

  153. 153.

    SADEA, art. 18.

  154. 154.

    SADEA, art. 26.

  155. 155.

    SADEA, art. 27.

  156. 156.

    SADEA, art. 31.

  157. 157.

    The proposal suggests the chapter title as ‘Digital Trade’ and not electronic commerce. Some experts believe that the use of ‘digital trade’ as a chapter title acknowledges the broader scope and applicability of these provisions to economic transactions in the digital economy. See Anupam Chander, The Coming North American Digital Trade Zone, 9 October 2018, https://www.cfr.org/blog/coming-north-american-digital-trade-zone (arguing the same in the context of the USMCA, which is the first PTA to adopt this chapter title).

  158. 158.

    Identical text proposed for ongoing negotiations between New Zealand and the EU. See https://trade.ec.europa.eu/doclib/docs/2018/december/tradoc_157581.pdf (last accessed 9 September 2021).

  159. 159.

    EU proposal, Digital Trade Chapter, Australia – EU FTA, art. 1. This exclusion is because the European Commission does not have the capacity to negotiate on audiovisual services but individual members. See Lee-Makiyama (2018), p. 219.

  160. 160.

    For e.g., in CPTPP, Australia included a NCM for the audiovisual sector with respect to its applicable obligations on national treatment, MFN, market access, performance requirements and local presence contained in the investment and trade in services chapter. CPTPP, Annex of Australia, https://www.mfat.govt.nz/assets/Trade-agreements/TPP/Annexes-ENGLISH/Annex-II.-Australia.pdf, p. 9. Similarly, in the GATS, Australia included audio-visual services in its MFN list and also not undertaken any commitments in the GATS Schedule.

  161. 161.

    EU proposal, Digital Trade Chapter, Australia – EU FTA, art. 2.

  162. 162.

    EU proposal, Digital Trade Chapter, Australia – EU FTA, art. 3.

  163. 163.

    See, e.g., EU-VN FTA, art. 8.53(a).

  164. 164.

    CPTPP, art. 14.1.

  165. 165.

    EU proposal, Digital Trade Chapter, Australia – EU FTA, art. 5.2.

  166. 166.

    See Sect. 3.1 above.

  167. 167.

    See Sects. 3.1 and 3.2 above.

  168. 168.

    See, e.g., European Parliament, Towards a Digital Trade Strategy, Doc no A8-0384/2017 (29 November 2017), https://www.europarl.europa.eu/doceo/document/A-8-2017-0384_EN.pdf (last accessed 9 September 2021) , p. 8 (See also para. 7: “Recalls that nothing in trade agreements shall prevent the EU and its Member States from maintaining, improving and applying its data protection rules”).

  169. 169.

    EU proposal, Digital Trade Chapter, Australia – EU FTA, art. 8.

  170. 170.

    No prior authorisation requirements was also a part of the E-commerce Directive in the EU.

  171. 171.

    Thomas Streinz, Tweet (20 January 2021) https://twitter.com/t_streinz/status/1351848132729065473 (last accessed 9 September 2021).

  172. 172.

    EU proposal, Digital Trade Chapter, Australia – EU FTA, art. 7(2).

  173. 173.

    EU proposal, Digital Trade Chapter, Australia – EU FTA, art. 7(1).

  174. 174.

    This topic has also been subject to extensive debate in the WTO, where the EU and the US have taken opposite sides. For more discussion, see Willemyns (2020), p. 233.

  175. 175.

    However, note EU’s proposal to JSI discussed above.

  176. 176.

    This headnote reads:

    1. 1.

      Any of the following services shall be considered as computer and related services, regardless of whether they are delivered via a network, including the Internet: (a) consulting, adaptation, strategy, analysis, planning, specification, design, development, installation, implementation, integration, testing, debugging, updating, support, technical assistance or management of or for computers or computer systems; (b) computer programmes defined as the sets of instructions required to make computers work and communicate (in and of themselves), as well as consulting, strategy, analysis, planning, specification, design, development, installation, implementation, integration, testing, debugging, updating, adaptation, maintenance, support, technical assistance, management or use of or for computer programmes; (c) data processing, data storage, data hosting or database services; (d) maintenance and repair services for office machinery and equipment, including computers; and (e) training services for staff of clients, related to computer programmes, computers or computer systems, and not elsewhere classified.

    2. 2.

      For greater certainty, services enabled by computer and related services, other than those listed in paragraph 1, shall not be regarded as computer and related services in themselves.

  177. 177.

    EU proposal, Investment Liberalisation and Trade in Services, Australia – EU FTA, art. 2.7.1.

  178. 178.

    For a general discussion, see Mishra (2021), pp. 41–46.

  179. 179.

    EU proposal, Digital Trade Chapter, Australia – EU FTA, art. 11.

  180. 180.

    EU proposal, Digital Trade Chapter, Australia – EU FTA, art. 9(1).

  181. 181.

    EU proposal, Digital Trade Chapter, Australia – EU FTA, art. 10.

  182. 182.

    EU proposal, Digital Trade Chapter, Australia – EU FTA, art. 13.

  183. 183.

    EU proposal, Digital Trade Chapter, Australia – EU FTA, art. 13(1).

  184. 184.

    See, e.g., Report of the 6th round of negotiations for a Free Trade Agreement between the European Union and Australia, 10-14 February 2020, https://trade.ec.europa.eu/doclib/docs/2020/february/tradoc_158656.pdf (last accessed 9 September 2021).

  185. 185.

    EU proposal, Digital Trade Chapter, Australia – EU FTA, art. 14(1); art. 13(2).

  186. 186.

    See, e.g., Japan -EU EPA, art. 8.80(2)(c).

  187. 187.

    Report of the 8th round of negotiations for a trade agreement between the European Union and Australia, September 2020, https://trade.ec.europa.eu/doclib/docs/2020/october/tradoc_158976.pdf (last accessed 9 September 2021).

  188. 188.

    SADEA, art. 27.

  189. 189.

    EU-UK TCA, art. DIGI.15.

  190. 190.

    SADEA, art. 27.2; EU-UK TCA, art. DIGI.15.1.

  191. 191.

    SADEA art. 27.3; EU_UK TCA, art. DIGI.15.2.

  192. 192.

    See generally Mishra (2017).

  193. 193.

    Lee-Makiyama (2018), p. 214.

  194. 194.

    GDPR, art. 3.

  195. 195.

    Office of the Australian Information Commissioner, Australian Privacy Principles Guidelines, https://www.oaic.gov.au/assets/privacy/app-guidelines/app-guidelines-july-2019.pdf (last accessed 9 September 2021).

  196. 196.

    Report of the 8th round of negotiations for a trade agreement between the European Union and Australia, September 2020,https://trade.ec.europa.eu/doclib/docs/2020/october/tradoc_158976.pdf (last accessed 9 September 2021).

  197. 197.

    The only restriction in Australian law is the cross-border transfer of e-health records. See Personally Controlled Electronic Health Records Act 2012 (Cth), s. 77.

  198. 198.

    See GDPR, Chapter 5.

  199. 199.

    Submission of the Australian Business in Europe, 27 June 2019, pp. 4–5, https://www.dfat.gov.au/sites/default/files/australian-business-in-europe-eufta-submission.pdf (last accessed 9 September 2021).

  200. 200.

    GDPR, art. 45(2).

  201. 201.

    Lee-Makiyama (2018), p. 214.

  202. 202.

    Meltzer (2018), p. ix.

  203. 203.

    See generally Mitchell and Mishra (2020).

  204. 204.

    SADEA, art. 10.

  205. 205.

    SADEA, art. 11.

  206. 206.

    See, e.g., EU-KR FTA, art. 7.3.

  207. 207.

    See DFAT, Australia-Singapore Digital Economy Agreement, https://www.dfat.gov.au/trade/services-and-digital-trade/Pages/australia-and-singapore-digital-economy-agreement (last accessed 9 September 2021).

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Appendices

Annex 1: Comparison of Electronic Commerce Chapters in EU PTAs

 

CETA

EU-Mexico Globalised Agreement

EU-KR FTA

EU-SG FTA

EU-VN FTA

Japan-EU EPA

EU-CARIFORUM FTA

EU-UK TCA

Objective and purpose: Economic growth, boosting trade opportunities

Specific recognition of right to regulate

Specific scope or exclusions

Non-discrimination of digital products

Customs duties on electronic transmissions

Online consumer protection

Framework for protection of personal information

Cybersecurity-dedicated provision

Data Localisation

Cross-border transfer of information

Domestic regulation in e-commerce

No prior authorisation requirement

Open Internet Access

Electronic signatures and authentication

Spam

Involuntary disclosure of source code

Transparency in e-commerce

Definition of computer services

Dialogues/cooperation on e-commerce

Paperless trading

Open Government Data

Separate Chapter

Annex 2: Comparison of Electronic Commerce Chapters in Australian FTAs

 

CPTPP

ChAFTA

HK-AFTA

IAEPA

KAFTA

PAFTA

JAEPA

SADEA

Objective and purpose—Economic growth, boosting trade opportunities etc.

Specific recognition of right to regulate in Section/Chapter on Electronic Commerce

Specific scope or exclusions from Electronic Commerce Chapter

Non-discrimination of digital products

Customs duties on electronic transmissions

Online consumer protection

Protection of personal information

Cybersecurity-dedicated provision

Data Localisation

Cross-border transfer of information

Domestic regulation in e-commerce

Open Internet Access

Electronic signatures and authentication

Spam

Involuntary disclosure of source code

Transparency in e-commerce

Definition of computer services

Dialogues/cooperation on e-commerce

Paperless trading

Domestic electronic transactions framework

Logistics, express shipments

Electronic invoicing

E-Payments

Digital Identities

Artificial Intelligence

Open Government Data

Data Innovation

Separate Chapter

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Mishra, N. (2022). Digital Trade in the Australia—EU FTA: A Future-Forward Perspective. In: Bungenberg, M., Mitchell, A. (eds) The Australia-European Union Free Trade Agreement. European Yearbook of International Economic Law(). Springer, Cham. https://doi.org/10.1007/978-3-030-91448-6_5

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