Costa Rica has joined the Digital Economy Partnership Agreement (DEPA) as its fifth member. Following Chile, the increase in Latin American participants is expected to expand opportunities for South Korean companies in the e-commerce and digital business sectors.
The Ministry of Trade, Industry and Energy announced on September 18 that Costa Rica's membership in DEPA has officially taken effect. With this addition, the DEPA now includes five countries: Chile, New Zealand, Singapore, South Korea, and Costa Rica.
DEPA is the first multilateral digital trade agreement aimed at establishing digital trade norms and enhancing cooperation. Chile, New Zealand, and Singapore signed the agreement in June 2020, which came into effect in January 2021, while South Korea became the first additional member in May 2024.
Costa Rica is the second additional member after South Korea. The country officially applied for membership on December 23, 2022, and a working group chaired by New Zealand was established in October 2023. After announcing a substantial agreement on membership negotiations in January of last year, all necessary legal procedures were completed.
DEPA includes norms and cooperation frameworks aimed at facilitating e-commerce, creating a reliable digital environment, and promoting data business. In the e-commerce sector, it regulates paperless trade, electronic certification, electronic signatures, and duty-free treatment for electronic transmissions. It also includes cooperation related to logistics, express shipments, electronic invoices, and electronic payments.
Norms have been established to enhance trust in digital transactions, including personal data and online consumer protection, as well as spam message regulations. Cooperation among member countries in cybersecurity and online safety is also promoted. Regarding data business, the agreement includes provisions for facilitating cross-border information transfer, prohibiting the localization of computing facilities, and ensuring non-discriminatory treatment of digital products.
The Ministry of Trade anticipates that Costa Rica's membership will broaden the foundation for digital cooperation in Latin America, thereby expanding opportunities for South Korean companies in e-commerce and digital business.
Efforts to expand the agreement's scope are ongoing. DEPA is an open agreement that allows for the participation of new countries, and negotiations for Peru's membership have been substantially concluded. China and the United Arab Emirates are also in the process of negotiating membership.
The government plans to continue discussions with member countries regarding digital trade norms and cooperation. Park Jeong-seong, head of the Ministry's Trade Negotiation Bureau, stated, "DEPA is a 'living agreement' that continuously enhances norms to adapt to the rapidly changing digital environment, deepens cooperation among member countries, and expands membership. The inclusion of Costa Rica is significant in broadening DEPA's scope and strengthening the capacity to respond to the evolving digital landscape." He added, "We will continue to collaborate to maximize the potential of digital innovation with DEPA member countries."
* This article has been translated by AI.
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