EU–Singapore digital trade agreement enters into force
Yesterday, the EU-Singapore Digital Trade Agreement (DTA) entered into force. It is the EU’s first-ever standalone bilateral digital trade agreement, marking an important step in the EU’s expanding network of digital trade agreements and digital trade chapters in its free trade agreements. The DTA strengthens trade between the EU and Singapore by setting transparent rules that make cross-border digital transactions easier, more predictable and reliable for businesses and consumers.
The agreement creates a safe online environment for consumers through high-standard commitments on online consumer protection, personal data and privacy, and protection against unsolicited commercial messages. It provides greater legal certainty for businesses by promoting paperless trade, ensuring the validity of electronic signatures, contracts and invoices, and prohibiting customs duties on electronic transmissions. Moreover, it promotes fair digital trade by prohibiting unjustified data localisation requirements and forced transfers of source code of software, protecting businesses from protectionist practices.
The DTA positions the EU and Singapore as global leaders in digital policy development, while supporting open and fair digital economies. It advances the EU’s approach to shaping digital and data rules centred on people and their rights, and ensures that both the EU and Singapore retain the policy space needed to develop and implement measures to address emerging challenges in the digital economy.
The negotiations for the DTA were launched on 20 July 2023. The deal builds on the strong foundation of the 2019 EU-Singapore Free Trade Agreement, which continues to deliver lasting benefits. In 2024, total EU-Singapore trade reached €131 billion, comprising €83 billion in services and €48 billion in goods. Most trade in services was delivered digitally, emphasising the growing importance of addressing this dimension of bilateral trade.
Commissioner for Trade and Economic Security, Maroš Šefčovič, said: “Digital trade is no longer a niche – it is central to global commerce and a powerful engine of economic growth. The EU is a global leader in this space, and the EU-Singapore Digital Trade Agreement – the first of its kind for the EU and now in force – aligns our partnership with the realities of modern trade. By enabling seamless, secure and efficient digital trade, the DTA delivers tangible and lasting benefits for businesses and consumers alike.”
