Canada and the European Union are “closing in on an agreement” on a digital trade agreement, according to International Trade Minister Maninder Sidhu, in a statement carried by The Canadian Press and reported on October 23 and 26, 2026.
The deal would cover cross-border data flows, electronic signatures and e-contracts, paperless trade, duties on electronic transmissions, and e-commerce, aimed at creating “less friction” for businesses buying and selling across borders. Sidhu pushed the talks forward in Ireland on Thursday, October 22, in a Dublin meeting with EU trade counterparts, days before the Canada-EU Summit in Montreal, Quebec, on October 29-30, 2026.
Canada exported nearly $15 billion in digital services to the EU in 2024, and Sidhu said an agreement could grow that figure further. The talks have been underway since March 2026, according to Digital Watch Observatory, and sit alongside the existing Canada-EU trade deal, CETA.
Under CETA, bilateral merchandise trade is close to 80% higher than pre-CETA levels, the EU is Canada’s second-largest trading partner for goods and services, with two-way trade valued at about $178 billion in 2025, and Canada’s merchandise exports to the EU grew almost 21% in January-August 2026, according to Global Affairs Canada on October 22. The EU negotiating directives of September 10, 2025, say the talks should cover cross-border data flows and unjustified data-localisation rules, while not affecting EU personal-data protection rules, and must preserve regulators’ ability to act in the public interest, including financial stability and privacy. Next steps are expected to be announced at the Montreal summit, where a broader “Canada-EU Alliance for the Future” covering digital trade, AI cooperation, cybersecurity and supply-chain resilience is also on the agenda. A draft summit statement reported elsewhere as claiming negotiations are “completed” is not used here as the lead: the agreement is closing in, not signed.
Read also: Canada retail sales rebound in August and Canada women beat England 31-22 in Ottawa
Bhudev Bhagaliya is an experienced and senior journalist who has carved a distinct niche for himself in the world of Hindi journalism through his profound understanding and precise writing style. With over two decades of experience in the field of journalism, he has held key responsibilities at Dainik Hindustan for 12 years and at Amar Ujala for one year. Currently, he serves as the Content Editor for the Jagrook Youth News newspaper and portal, where he plays a crucial role in ensuring the quality and credibility of the news content. Bhudev Bhagaliya consistently writes about issues that help raise awareness within society and among the younger generation.