EU and Singapore sign digital trade agreement

The European Union (EU) and Singapore have achieved a major breakthrough together with a new Digital Trade Agreement. It aims to significantly improve cross-border data flows, simplify online trade and set high standards for digital commerce.

The new agreement is a comprehensive framework aimed at reducing costs and simplifying administrative procedures for businesses, including small and medium-sized enterprises (SMEs). It covers key areas including electronic signatures, consumer protection, combating spam and a ban on the forced transfer of technology such as source code. These steps will create a stable and secure environment for digital trade, facilitating the development of businesses in this area.

While Singapore is the EU’s fifth-largest partner in services trade, this deal will provide even more benefits to the country. €43 billion, which is more than half of the total services trade between the countries was conducted digitally in 2022. The new agreement aims to further increase this volume by streamlining processes and providing businesses in both regions with a high level of confidence in the digital sphere.

For international businesses and SMEs considering Singapore as a base, this agreement signals an even more favorable environment for digital trade and innovation. The reduced barriers and increased legal certainty provided by this deal could make Singapore an even more attractive hub for startups and technology-focused businesses looking to succeed in European and Asian markets.

This agreement is part of the EU’s strategy to strengthen its position as a global leader in digital trade standards. With agreements already concluded with the UK, Chile, New Zealand and Japan, as well as active negotiations with South Korea, the EU continues to strengthen its influence in setting international digital trade norms.

The EU-Singapore Digital Trade Agreement will need to be ratified by Singapore and approved by EU national governments and the European Parliament before it can enter into force. Once in force, the agreement is expected to open up new prospects for business growth and strengthen the digital trade relationship between Europe and Singapore.