The European Union (EU) and Singapore signed the EU-Singapore Digital Partnership (EUSDP) on February 1 in Brussels. The EUSDP will lead to a digital trade agreement to enable consumers and businesses to transact online more seamlessly and at lower costs. The deal was signed by Singapore’s Minister-in-charge of Trade Relations S. Iswaran and Thierry Breton, European Commissioner for the Internal Market.
The pact aims to boost participation in the digital economy by imparting relevant skills to workers in both jurisdictions and transforming their businesses and public services. Digital trade facilitation, trusted data flows, electronic payments and standards are other areas of collaboration. The deal will also focus on emerging areas such as artificial intelligence, digital identities, and 5G/6G communication networks.
Singapore and the EU share a strong economic relationship, underpinned by the EU-Singapore Free Trade Agreement, which came into force in November 2019. The EU is Singapore’s second-largest digital partner for trading services and fourth-largest for trading goods. Singapore is also the EU’s largest trading partner in ASEAN. There are about 12,000 EU businesses in Singapore. Investment relations are strong, with the EU being Singapore’s second largest foreign investor and largest overseas investment destination.