A strong and dynamic digital economy requires whole-of-economy settings that provide the basis for investment in digital tools and processes, including trade and international engagement.

In an increasingly global world, engaging internationally to influence the development of international rules and standards for digital trade and technologies will ensure Australian businesses, workers and consumers are able to benefit from an open, reliable and interoperable environment for digital trade which reflects our values. Likewise, promoting Australia as a safe, trusted and stable place to do business will encourage investment, and digital trade agreements will create opportunities for Australian business, consumers and workers.

Australia’s Digital Trade Strategy provides a framework for Australia to maximise economic growth by shaping an enabling environment for digital trade. It guides Australia’s practical action as a leader in digital trade, informing our work to develop digital trade rules to deliver commercial benefits and push back against digital protectionism.

Topics

• Why is digital trade important to Australia?
• What is DFAT doing to reduce barriers for Australian businesses in digital trade?
• Multilateral discussions and electronic commerce negotiations
• E-commerce chapters in Australia’s Free trade agreements (FTAs)
• What types of rules does Australia pursue?
• Public submissions on the future of digital trade rules

Why is digital trade important to Australia?

Digital trade is fundamental to our economic growth. In 2018, the Export Council of Australia estimated that digital trade enables up to $43 billion of economic value in Australia’s domestic economy and predicted this to grow to $192 billion by 2030.

Digital trade encourages economic growth by creating new opportunities for businesses, consumers and workers. It provides easier access to overseas markets and customers, and lowers informational and cost barriers for both buyers and sellers to encourage greater participation of businesses for all sizes. Digital trade also increases productivity through the use of technology and by promoting innovation and more efficient business practices. 

Data and data flows are essential for how we trade and live, underpinning daily business operations, logistics, supply chains and international communications. Today, every digital interaction involves the creation and transfer of data. Cross-border data flows are increasingly integral to businesses of all sizes across all sectors, but particularly for micro, small and medium businesses which face significant hurdles in overcoming regulatory barriers and participating in global supply chains. Restrictions on data flows can have a range of unintended consequences, including increased costs for businesses, reduced efficiencies of payment systems, difficulties for businesses in entering and understanding regulatory requirements in new markets, decreased competition, and increased exposure to cybercrime.

Australia’s digital trade rules seek to strike a balance between enabling the free flow of data and preserving Australia’s ability to regulate in the public interest, including through ensuring the protection of privacy and personal data.
 

What is DFAT doing to reduce barriers for Australian businesses in digital trade?

As outlined in Australia’s Digital Trade Strategy and 2023-2030 Australian Cyber Security Strategy, we advocate strongly for a rules-based and open global trading environment that supports the digitalisation of trade, builds trust and confidence in the online environment and reduces barriers to digital trade.

DFAT and other government agencies are working with countries around the world to ensure Australian businesses and consumers benefit from the immense opportunities that digital trade offers.

Through our trade agreements we are seeking to address impediments to trade, provide business with predictability, create quality jobs, and provide more choice for consumers. We also engage in ongoing economic cooperation with our trading partners, including through the ASEAN-Australia Digital Trade Standards Initiative and Aus4ASEAN Futures Initiative. These efforts support our trading partners’ implementation of trade commitments, and reduce fragmentation and enhance interoperability across regulatory regimes with a view to ensuring a more transparent and predictable trading environment. 

We are engaged in several rule making efforts that support digital trade, including in the WTO and the Indo-Pacific Economic Framework trade pillar, and through cooperation in APEC and the OCED. 

Multilateral discussions and electronic commerce negotiations

Australia and other countries are increasingly working together on digital trade via groups such as the G20, World Trade Organisation (WTO), Asia-Pacific Economic Cooperation (APEC) and the Organisation for Economic Development (OECD).

WTO Joint Statement Initiative on E-Commerce

Australia, Japan and Singapore have jointly co-convened negotiations at the WTO under the Joint Statement Initiative on E-Commerce since 2019.

On 26 July 2024, the co-convenors of the Joint Statement Initiative on E-Commerce jointly released a stabilised text of the Agreement on Electronic Commerce, a major milestone towards setting the first digital trade rules with global reach.

Once in force, the Agreement on Electronic Commerce will benefit Australian consumers, workers and businesses, by making global digital trade faster, cheaper, fairer, and more secure.

Negotiations were launched on 25 January 2019, in the margins of the World Economic Forum in Davos, when Australia together with 75 other WTO Members announced their intention to achieve a high standard outcome on trade-related aspects of electronic commerce. As at 25 June 2025, there were 91 WTO Members participating in the negotiations, accounting for over 90 per cent of global trade. Participation is open to all WTO members.

Other multilateral initiatives

There is currently a WTO moratorium on imposing customs duties on electronic transmissions in place until the 14th WTO Ministerial Conference or 31 March 2026, whichever is the earlier. Australia is one of the countries that would like to see this moratorium made permanent.

Australia negotiated and implemented the WTO's Information Technology Agreement, which cuts tariffs on IT products to reduce costs for businesses and consumers. In December 2015, some participating members, including Australia, agreed to update the agreement and expand the coverage to cover additional goods. The expansion of the ITA was the first major tariff-cutting deal at the WTO since the original ITA. The ITA has been one of the most effective mechanisms in reducing duties on IT products thereby making IT inputs cheaper for business and consumers.

Australia also played a pivotal role in negotiating the WTO's Trade Facilitation Agreement (TFA), which entered into force for all WTO members on 22 February 2017. This agreement promotes simpler, more harmonious international trade procedures, including online submission and payment systems for customs documents. The TFA commits parties to reducing red tape and the burden of administrative costs associated with exporting and importing.

Our region has enormous potential for further digital trade growth. DFAT will continue taking part in multilateral, regional and bilateral discussions to maximise the benefits for Australian businesses and consumers.

Aid for Trade

Australia’s Aid for Trade supports developing and least developed countries (LDCs) to participate in and benefit from digital trade, including under the WTO Joint Statement Initiative on E-Commerce. 

E-commerce chapters in Australia’s Free Trade Agreements (FTAs)

Australia has e-commerce chapters in 15 of its 18 FTAs:

• ASEAN-Australia-New Zealand
• Chile
• China
• Comprehensive and Progressive Agreement for Trans-Pacific Partnership
• Hong Kong
• Indonesia
• Japan
• Korea
• Malaysia
• Peru
• Regional Comprehensive Economic Partnership Agreement
• Singapore
• Thailand
• United Kingdom
• United States

What types of rules does Australia pursue?

In delivering a modern and digital economy to drive Australia’s future prosperity, Australia is seeking to maximise economic growth by shaping an enabling environment for digital trade and reinforcing the international rules-based trading system. To do this, Australia is pursuing rules that reduce barriers to digital trade and support the growth of an open and competitive economic environment whilst also ensuring we retain policy space to preserve Australia’s ability to regulate in key areas of public interest. We are also seeking to encourage cooperation on emerging digital economy issues. 

The table below outlines, in general, the types of provisions Australia pursues in its trade agreements to enable digital trade.