The agreement aims to strengthen digital trade and connectivity, building on the EU-Singapore Digital Partnership
On Thursday, July 25, 2024, Singapore and the European Union (EU) concluded negotiations on a new digital trade agreement, the EU-Singapore Digital Trade Agreement (EUSDTA), aimed at facilitating smoother data flows and digital commerce. The agreement is the first of its kind between the EU and an ASEAN country, marking a significant milestone in the global digital economy.
This deal builds on the EU-Singapore Digital Partnership (EUSDP), signed earlier in February 2024, and is the fifth such agreement Singapore has entered into, following similar treaties with Australia, South Korea, the United Kingdom, and a joint one with Chile and New Zealand.
The EUSDTA is expected to provide clear and legally binding rules for digital trade between Singapore and the EU, enhancing connectivity and interoperability between their digital markets. Key commitments include enabling open and secure data flows, protecting personal data, prohibiting data localization requirements, and offering protection against forced transfers of technology and intellectual property. The agreement will also safeguard consumers from unfair practices and spam.
Singapore’s Minister-in-charge of Trade Relations, Grace Fu, emphasized that the EUSDTA would unlock more opportunities in the digital economy while promoting digital inclusion, particularly for small and medium-sized enterprises (SMEs). The agreement will also ensure legal certainty for companies and consumers engaging in digital transactions across borders.
Additionally, Fu and Valdis Dombrovskis, the European Commission’s Executive Vice-President for an Economy that Works for People, held the second trade committee meeting under the EU-Singapore Free Trade Agreement, which came into force in November 2019. Both sides reiterated their commitment to further strengthening trade cooperation, particularly in emerging areas like the green economy.
The EU remains a key trade partner for Singapore, being its fourth-largest goods trading partner and second-largest services trading partner. In 2023, bilateral goods trade surpassed S$105 billion, while services trade exceeded S$98 billion in 2022. The EU is also Singapore’s second-largest source of foreign investment.
