EU: Arrangement with Singapore on First Digital Trade Agreement
The agreement, which will be signed in the coming months, expands on the free trade agreement signed between the two countries in 2019
The European Union (EU) and Singapore have concluded negotiations on a first-of-its-kind Digital Trade Agreement (DTA) in Brussels, which aims to create a global standard to regulate digital trade and cross-border data flows.
The agreement complements the free trade agreement signed by the European Union and Singapore in 2019 and will benefit businesses and consumers by connecting the two economies more firmly.
The aim is also to create a regulatory framework that will build consumer confidence and provide legal certainty.
“Creating smart, modern digital trade rules with our global partners is crucial at a time when more than half of the EU’s services trade is digital,” commented EU Trade Commissioner Valdis Dombrovskis. “Today, the first agreement of its kind with Singapore will benefit businesses and consumers on both sides, bringing our economies closer together while representing a significant step forward for the EU’s ambition to become the global standard in the digital commerce sector.” Dombrovskis also explained that in 2024, more than half of the total trade in services between the EU and Singapore will be digital, at 55%, which equates to €43 billion.
Grace Fu, Singapore’s trade minister, explained that “the EU is our second largest trading partner in digital services,” adding that the agreement will improve costs and efficiency by ensuring compatibility of digital commerce systems for electronic and paperless payments and will help “address digital economy challenges, such as artificial intelligence management, 6G, and digital identity.”