Canada-EU digital trade deal 'closing in', minister says, ahead of Montréal summit

International Trade Minister Maninder Sidhu said Canada and the European Union are "closing in on an agreement" on digital trade. In a statement carried by The Canadian Press, Sidhu said the deal would help "create less friction" around e-signatures and e-contracts, paperless trade, secure cross-border data flows, duties on electronic transmissions and e-commerce.

Timing of the talks

Sidhu was in Ireland last Thursday (October 22) to push the negotiations forward. The talks are continuing days before Canada hosts the Canada-EU Summit in Montréal, Québec, on October 29 and 30. Sidhu said Canada exported nearly $15 billion in digital services to the EU in 2024, with room to grow that figure once an agreement is in place.

Where Brussels will not move

The negotiating directives the European Commission put to the Council on September 10, 2025, state that the talks "should result in rules covering cross-border data flows addressing unjustified data localisation requirements, while neither negotiating nor affecting the EU's personal data protection rules." The agreement should not prevent EU and member state authorities from regulating in the public interest, including "ensuring the integrity and stability of the Union's financial system, privacy and personal data protection." The same text lists protection of computer source code, forced technology transfer and online consumer protection among the subjects the talks may cover.

One caution: what has been reported so far is that a deal is close, not concluded. The final text still has to be agreed.

Sources: The Canadian Press via Wealth Professional, October 26, 2026; European Commission negotiating directives, September 10, 2025.