EU and Singapore finalise digital trade deal

Expected to lower business costs and boost services trade, it underscores Singapore’s significant role as the EU’s fifth-largest services trade partner, with over half of the €43 billion services traded in 2022 delivered digitally.
Singapore

The European Union and Singapore have finalised a digital trade agreement to facilitate cross-border data flows and establish global rules for digital trade. This new deal, which enhances the existing EU-Singapore free trade agreement from 2019, includes provisions for e-signatures, consumer protection, and limits on spam. It also addresses data access and transfer concerns, particularly regarding technology mandates from countries like China.

The agreement is expected to reduce business costs and boost services trade, benefiting both parties. Singapore, a major player in the EU’s services trade, saw its digital services trade reach 43 billion euros ($47 billion) in 2022. For the EU, this deal aligns with its goal to set global standards for digital trade, particularly in the Asia-Pacific region. The EU already has similar agreements with Britain, Chile, New Zealand, and Japan and is negotiating with South Korea.

The agreement, which must be ratified by Singapore, the EU’s national governments, and the European Parliament, reflects the growing importance of digitally delivered services, which have been rising at an average annual rate of 8.1% globally.