The EU today (25 July) concluded negotiations with Singapore on a new Digital Trade Agreement designed to increase online trade, help SMEs with digital transformation and facilitate data flows.
ADVERTISEMENT
The EU today (25 July) concluded negotiations with Singapore on a new Digital Trade Agreement designed to increase online trade, help SMEs with digital transformation and facilitate data flows.
The deal was announced following talks in Brussels by Trade Commissioner Valdis Dombrovskis and Singapore’s Minister for Trade Relations Grace Fu and complements the EU-Singapore Free Trade Agreement which came into effect in 2019.
Following five rounds of negotiations between Brussels and Singapore, both parties have agreed to implement various measures to enhance cooperation in digital trade; the agreement aims to reduce administrative and financial burdens for SMEs, enable interoperable digital trade systems for e-payments and electronic contracts, and establish rules on data flow, among other things.
“It will also provide certainty and clarity for our citizens and businesses to engage in cross-border digital trade transactions by setting high standards for personal data protection and prohibiting data localisation requirements,” Singapore’s Trade Minister Grace Fu told the press. However, Valdis Dombrovskis clarified that e-privacy rules and GDPR, the EU's flagship legislations on digital rights, are excluded from the agreement.
This agreement forms part of an EU strategy to forge partnerships in the East and Southeast Asian region, amidst commercial tensions with China. “As digitally progressive and like-minded trading partners, the EU and Singapore can play a leading role in setting high-standard digital trade rules between our regions and raising the ambition of global digital standards,” said the joint statement at the launch of negotiations in July 2023.
Singapore also stands to benefit significantly, as Grace Fu highlighted that the EU is Singapore's second-largest partner in digital trade. “In 2022, more than half (55%) of the total trade in services between the EU and Singapore was digitally delivered, amounting to €43 billion,” she noted.
The agreement will come into effect once it receives approval by Singapore and from the Member States through a qualified majority system (15 out of 27, representing at least 65% of the total EU population) in the Council and a vote in the European Parliament. The previously concluded Tree Trade Agreement with Singapore is still to be ratified by 9 members states.
A similar agreement on digital trade with South Korea is currently under negotiation. Earlier this month, a Data Flow Agreement with Japan came into force.