EU–Singapore Digital Trade Agreement enters into force

The agreement represents a step forward in the EU’s trade policy, supporting competitiveness, strengthening economic security, and creating new opportunities for citizens and businesses. 

The DTA strengthens bilateral trade by setting transparent rules that make cross-border digital transactions easier, more predictable and more reliable for businesses and consumers. It achieves this by providing legal certainty for business, enhancing consumer trust, and addressing unjustified barriers to digital trade.

Amidst heightened global economic uncertainty, this agreement demonstrates the shared commitment to open, rules-based trade. It is the EU’s first-ever standalone bilateral digital trade agreement, which marks an important step in the EU’s expanding network of digital trade agreements and digital trade chapters in its free trade agreements. 

The DTA will: 

• Establish a safe online environment for consumers. Binding, high-standard commitments in areas such as online consumer protection, protection of personal data and privacy, and protection against unsolicited commercial messages will enhance consumer welfare, giving them greater confidence and assurance to transact in the digital economy.
• Provide 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, it facilitates more efficient and predictable digital transactions.
• Promote fair digital trade. It prohibits unjustified data localisation requirements and forced transfers of source code of software, protecting businesses from protectionist practices and fostering confidence in digital markets. 

This 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.

Background

The negotiations for the DTA were launched on 20 July 2023. The DTA 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. The majority of trade in services was delivered digitally, which emphasises the importance of addressing this growing dimension of bilateral trade.

More information

Agreement on digital trade between the European Union and the Republic of Singapore

EU-Singapore trade relations

Digital trade