On 1 February, the EU-Singapore Digital Trade Agreement entered into force. This is the EU’s first independent bilateral agreement on digital trade, marking an important step in the growing network of EU digital trade agreements and digital trade chapters in its free trade agreements. The Digital Trade Agreement strengthens trade between the EU and Singapore by establishing transparent rules that make cross-border digital transactions easier, more predictable and more reliable for both businesses and consumers.
The Agreement creates a secure online environment for consumers through high-level commitments on online consumer protection, personal data and privacy, and protection against unsolicited commercial messages. By promoting paperless trade, ensuring the validity of electronic signatures, contracts and invoices, and prohibiting customs duties on electronic transmissions, the Agreement provides businesses with greater legal certainty. It also promotes fair digital trade by prohibiting unjustified data localisation requirements and forced transfers of software source code, thereby protecting businesses from protectionist practices.
The Digital Trade Agreement positions the EU and Singapore as global leaders in digital policy development, while supporting open and fair digital economies. It promotes the EU’s approach to shaping digital and data rules that are focused on people and their rights, and ensures that both the EU and Singapore retain the policy space to develop and implement measures to address emerging challenges in the digital economy.
Negotiations on the Digital Trade Agreement began on 20 July 2023. The Agreement builds on the strong foundation of the 2019 EU-Singapore Free Trade Agreement, which continues to deliver lasting benefits. In 2024, total trade between the EU and Singapore reached €131 billion, of which €83 billion was in services and €48 billion in goods. Most of the trade in services was conducted digitally, highlighting the growing importance of this dimension of bilateral trade.
More information: European Commission
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