The European Union (EU) and Singapore have signed a new Digital Trade Agreement to boost online trade, assist small and medium-sized businesses (SMEs) with digital transformation, and streamline data flows.
The deal, announced on July 25 in Brussels by EU Trade Commissioner Valdis Dombrovskis and Singapore’s Minister for Trade Relations Grace Fu, enhances the current EU-Singapore Free Trade deal from 2019.
The agreement, reached after five rounds of negotiations, seeks to decrease administrative and financial burdens on SMEs, enable interoperable systems for e-payments and electronic contracts, and set data flow regulations. Minister Grace Fu emphasised that the agreement would provide certainty and clarity for cross-border digital transactions, establish high standards for personal data protection, and prevent data localisation requirements.
However, this accord excludes e-privacy standards and GDPR, the EU’s major digital rights legislation.
This agreement is consistent with the EU’s strategy of strengthening ties in East and Southeast Asia in the face of concerns with China. The EU and Singapore, as digitally progressive and like-minded partners, want to establish high-quality digital trade rules and enhance global digital standards.
With the EU as Singapore’s second-largest digital trading partner, the deal promises enormous benefits, particularly given the €43 billion in digitally delivered services traded in 2022.
