SINGAPORE and the European Union (EU) have concluded negotiations on a digital trade agreement that will facilitate data flows and digital trade, Singapore’s Ministry of Trade and Industry (MTI) said on Thursday (Jul 25).
This EU-Singapore Digital Trade Agreement (EUSDTA) is the first accord of its kind between the EU and an Asean country.
It is also the fifth digital economy agreement that Singapore has concluded. The city-state has similar treaties with Australia, South Korea, the United Kingdom, as well as a joint one with Chile and New Zealand.
The EUSDTA was jointly announced in Brussels, Belgium by Singapore’s Minister-in-charge of Trade Relations Grace Fu, and the European Commission’s Executive Vice-President for an Economy that Works for People and Commissioner for Trade Valdis Dombrovskis.
MTI said the EUSDTA is set to provide clarity and legal certainty for companies and consumers on the rules for digital trade between Singapore and the EU, and strengthen digital connectivity and interoperability between their digital markets.
It added that the agreement comprises high-standard commitments that will enable open and secure data flows, facilitate end-to-end digital trade, as well as establish trusted digital systems for businesses and consumers.
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“The EUSDTA underscores Singapore and the EU’s shared commitment to ensuring that our companies and people have legal certainty and confidence when transacting in the digital economy, amid a rapidly evolving regulatory landscape,” said Fu.
“It will enable us to unlock greater opportunities in the digital economy, while ensuring digital inclusion, especially for small and medium enterprises.”
With the EUSDTA, there will be legally binding rules to prohibit data localisation requirements and uphold the protection of personal data.
Even as it allows for more seamless and cost-efficient transactions, the agreement will offer protection against forced transfers of technology and intellectual property, as well as unfair practices and spam for consumers.
The EUSDTA builds on the EU-Singapore Digital Partnership (EUSDP) that was inked last February, as well as a set of digital trade principles.
The principles, which were launched with the EUSDP, had outlined the scope of a possible digital trade agreement and marked the first step towards the EUSDTA.
Separately, Fu and Dombrovskis also convened the second trade committee meeting under the EU-Singapore Free Trade Agreement, which entered into force in November 2019.
Both leaders affirmed their sides’ good cooperation in implementing the free trade agreement, said MTI. They also discussed ways to deepen collaboration in forward-looking trade areas including the green economy.
The EU is Singapore’s fourth-largest goods trading partner. Last year, bilateral trade in goods grew to more than S$105 billion, representing 8.7 per cent of Singapore’s total goods trade.
The EU is also Singapore’s second-largest services trading partner, with bilateral trade in services reaching over S$98 billion in 2022.
Their investment relations are also robust. The EU is Singapore’s second-largest foreign investor and second-largest overseas investment destination.
