The European Union (EU) and Singapore have successfully concluded negotiations for the EU-Singapore Digital Trade Agreement (EUSDTA) on 25th July 2024 in Brussels. This agreement, building on the EU-Singapore Digital Partnership signed earlier in February 2023, establishes high-standard commitments to facilitate open and secure data flows, end-to-end digital trade, and robust digital systems. The EUSDTA provides legal certainty and clarity for businesses and consumers by prohibiting data localization requirements, protecting personal data, and preventing forced transfers of technology and intellectual property.
This landmark agreement, the first Digital Trade Agreement between the EU and an ASEAN country, significantly strengthens digital connectivity and interoperability between the EU and Singapore. It includes provisions that enhance consumer protection, prevent unfair practices, and promote cooperation, particularly benefiting Small and Medium Enterprises (SMEs) by providing them with greater opportunities to participate in the digital economy. The EUSDTA’s legally binding rules are designed to ensure seamless and cost-efficient digital transactions across both regions.
The EUSDTA complements the existing EU-Singapore Free Trade Agreement (EUSFTA), which has been in force since November 2019. As Singapore’s fourth-largest goods trading partner and second-largest services trading partner, the EU plays a critical role in Singapore’s economy. In 2023, bilateral trade in goods exceeded S$105 billion, while services trade reached over S$98 billion in 2022. The strong investment ties between the two regions, with the EU being Singapore’s second-largest foreign investor, are further reinforced by this new digital trade agreement, paving the way for deeper economic collaboration.
(Sources: European External Action Service; Singapore Ministry of Trade & Industry)
