Singapore and the European Union are deepening their economic partnership with the entry into force of the EU-Singapore Digital Trade Agreement (EUSDTA) on February 1st. According to a press release, the Singapore Ministry of Trade Affairs states that the EUSDTA reinforces the shared commitment of the EU and Singapore to maintaining a modern, open, and rules-based digital economy.
Negotiations on the EUSDTA began in July 2023 and concluded in July 2024. Now, with the entry into force of the EUSDTA, high-standard rules for digital trade are established, and the secure flow of data across borders is facilitated, providing greater legal certainty and clarity for businesses and individuals conducting transactions in the digital economy.
The agreement promotes interoperability between the digital regimes of Singapore and the EU, boosting end-to-end digital trade between both parties, while improving consumer welfare and the protection of personal data.
The EU and Singapore are committed to maintaining a modern, open, and rules-based digital economy, enabling consumers and businesses to benefit from enhanced economic connectivity between the two parties.
The Minister for Trade Relations, Grace Fu, said, “Singapore is pleased with the rapid entry into force of the EU-Singapore Digital Trade Agreement. The EUSDTA is Singapore’s largest bilateral digital economy agreement to date, establishing rules for digital trade with all 27 EU Member States. This is an ambitious and high-standard agreement that will strengthen digital connectivity, promoting transparent and fair digital trade. The EUSDTA also strongly signals our commitment to working together to positively shape the global digital trade landscape and ensure that Singapore and the EU remain well-positioned for growth amidst global economic challenges.”
The EU is Singapore’s fifth-largest trading partner in goods and second-largest in services, and the second-largest foreign investor in Singapore and the second-largest destination for overseas investment. More than half of the trade in services between the EU and Singapore is conducted digitally.
The EUSDTA will complement the EU-Singapore Free Trade Agreement (EUSFTA), which entered into force in 2019.
