The 2010s are considered a period when the paradigm of trade shifted along with the advancement of digital technology. New technologies such as cloud computing, big data, and mobile payments became commercialized, and the necessity for new trade norms that include interstate data transfer, and e-commerce has emerged. A representative example is the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), signed by Japan, the United Kingdom, Australia, and others in 2018. The CPTPP introduced obligations for digital trade norms through the electronic commerce chapter, which includes the prohibition of localization requirements for servers and the prohibition of demands for the disclosure of software source codes.

The United States-Mexico-Canada Agreement (USMCA), signed in 2018 and effective in 2020, is also evaluated to have contributed to the activation of digital trade in North America. In the Asia-Pacific region, bilateral and regional digital trade agreements (DTA), led by Singapore, Australia, and New Zealand, began to be signed, and this trend culminated in the Digital Economy Partnership Agreement (DEPA) among Singapore, New Zealand, and Chile in 2020. Thus, in the 2010s, a series of bilateral and regional digital trade agreements were signed and enacted, laying the foundation for global digital economic norms.

The United States has led open digital norms by stipulating free movement of data, prohibition of localization requirements, and prohibition of source code disclosure in agreements such as the Korea-U.S. Free Trade Agreement (FTA) and the Trans-Pacific Partnership (TPP). In contrast, the European Union (EU) has established its own norms centered on data protection based on the General Data Protection Regulation (GDPR), as well as the Digital Markets Act (DMA) and the Digital Services Act (DSA). Meanwhile, China has strongly restricted the overseas transfer of data by prioritizing cybersecurity and internet sovereignty, and has designed policies to strengthen state-led control over the digital industry. These different policies reflect each country's movement to define digital trade norms according to their national interests, establishing a basis for DTA between multiple countries and competition over global norms. As we entered the 2020s, DTA rapidly spread through bilateral and multilateral frameworks. A representative example is DEPA, which was initiated by Singapore, New Zealand, and Chile in 2021, covering a wide range of areas including data transfer, electronic payments, digital identity, and artificial intelligence (AI) ethics.

Korea officially joined DEPA on May 3, 2024, becoming the first additional member of the agreement, and discussions for additional memberships are ongoing with China, Canada, Costa Rica, and Peru. The United Arab Emirates (UAE) and El Salvador have also expressed their intention to join, and DEPA is expanding into a digital trade network that connects Asia, North America, Latin America, and the Middle East. Recently, the substantial conclusion of the Costa Rica membership negotiations has further elevated DEPA's status as a global digital cooperation framework.

Digital trade emerging as a geopolitical norm competition

Digital trade norms are gradually becoming a stage for geopolitical competition within the global economic order. The United States emphasizes the prohibition of source code disclosure and the free movement of cross-border data, valuing openness and an innovation ecosystem. In contrast, the EU places consumer rights and digital sovereignty at the forefront with GDPR and AI legislations. China, citing national security, insists on data localization, but has recently allowed limited transfer of data in some FTAs. Such normative deviations among countries (regions) are increasing the complexity of multilateral negotiations. Securing interoperability of related systems between countries has thus emerged as a new challenge.

The World Trade Organization (WTO) recently pointed out in a report that while AI technology enables productivity improvements and promotes trade, it can also lead to digital divides and new non-tariff barriers. In particular, restrictions on cross-border data transfer could pose obstacles to AI innovation. AI technology is expected to significantly enhance trade efficiency in areas such as breaking down language barriers, automating logistics, and predicting consumer behavior, but there are side effects such as intellectual property (IP) issues regarding training data, potential privacy invasions, and platform monopolies. As a result, countries are actively adopting clauses that guarantee AI ethics and technological reliability in digital trade norms. The EU's 'AI Act', the first of its kind globally, adopted in August 2024, codifies pre-examination and transparency obligations for high-risk AI. Specifically, AI systems are classified according to their risk levels as 'prohibited', 'high-risk', 'limited risk', and 'minimal risk', imposing specific obligations for risk management, data quality, transparency, human oversight, and robustness on high-risk AI. Furthermore, to enhance social trust and accountability, high-risk AI systems must register their information in a public database established by the EU, allowing both the market and citizens to verify the characteristics and risks of the systems.

DTA acts as a catalyst for technological cooperation

DTA functions not just as a means of trade liberalization but also as a catalyst and institutional platform for international technological cooperation. In particular, agreements between bilateral and multilateral entities such as DEPA and the Korea-Singapore Digital Partnership Agreement (KSDPA) enable joint policy experimentation and standard setting in new technology fields like AI, fintech (a combination of finance and technology), digital identity, and cybersecurity. Additionally, it strengthens trust in technological cooperation through △ the liberalization of cross-border data movement, △ mutual recognition of electronic payments and electronic documents, △ common personal data protection, and △ cybersecurity standards. DTA is also gaining attention as an alternative for coordinating digital trade policies between countries. It operates as an institutional framework that mitigates trade friction arising from differences in digital norms among countries and enables industrial and research institutions to pursue joint research and development (R&D) projects. The World Trade Organization (WTO) warns that, while AI technology contributes to productivity improvements and reductions in trade expenses, it can also deepen digital divides and non-tariff barriers. Nevertheless, the necessity of technological cooperation between countries is acknowledged. Ultimately, DTA is evolving into an institutional infrastructure for inclusive growth in the digital era by promoting the standardization of digital technologies and building trust based on the collaboration of governments, industries, and academia across countries.

Korea must lead in digital trade

The Korean government is currently engaged in multilayered digital norm cooperation through initiatives such as joining DEPA, promoting Korea-EU DTA, and participating in the WTO Joint Statement Initiative (JSI) on electronic commerce. Alongside this, it has proposed an 'AI policy roadmap' centered on data openness, expanding computing infrastructure, and fostering AI talent to support the development of the AI industry. This is a strategic choice to secure technological sovereignty while maintaining consistency with global norms. However, digital trade is not simply about supporting technology trade; it is a complex and multifaceted area where national industrial policies, industrial ethics, economic security, and market order intersect. Therefore, for Korea to leap to the status of a leading norms nation, it must pursue three paths concurrently: △ first, experimentation of digital norms and policy coordination through public-private cooperation; △ second, training professionals in digital norms and refining laws and institutions; and △ third, establishing a support system to enhance the normative adaptability of the domestic industry. This strategy will play a key role in enabling Korea to secure effective leadership in the process of restructuring the global digital economic order and building a sustainable growth foundation.

※ This article was published in the July issue of the monthly magazine 'Trade'. Please search for 'Monthly Trade' on Naver.