Brussels – The European Union is stepping up its trade relations with Singapore by focusing on digital services through the new Agreement on Digital Trade (DTA), signed today (May 7) by the EU Trade Commissioner, Maroš Šefčovič, and Singapore’s Trade Relations Minister, Grace Fu.
Once implemented, the DTA will define the new rules on data traffic between the two markets, deepening cooperation in the digital domain. Consumer protection is one of the primary goals of the initiative, which, by ensuring the protection of personal data, electronic transmissions, digital contracts, and marketing and authentication services, aims to provide legal protection for businesses that choose to invest in digital trade between the EU and Singapore. The agreement, the first of its kind between the EU and a member of ASEAN, the organisation that brings together the largest economies in Southeast Asia, provides tools to counter protectionist practices and unjustified data localisation and use.
“I am convinced that the agreement will bring tangible and lasting benefits to both people and businesses in Singapore and throughout the EU,” said Šefčovič, recalling that more than half of the trade in services between the Union and the Asian country is already in digital format. “By connecting our digital economies and enabling secure data flows, this agreement will unlock a host of new opportunities,” the commissioner added. Minister Fu has expressed enthusiasm for strengthening trade relations with the EU and the opportunities this presents: “The Data reflects our shared commitment to an inclusive, reliable, and secure digital economy, and creates important opportunities for our companies.”
The document rests on the Free Trade Agreement signed in 2019, and confirms the already strong connection between the European and Singaporean markets. The EU is the second largest trading partner in the services sector for Singapore (after the U.S.), with an exchange worth more than $110 billion in 2023, the second largest foreign investor, and Singapore’s second largest investment destination. The additional protection that the DTA would offer to the market would thus infuse additional momentum for European companies operating in Singapore, which, in addition to being one of the global hubs in digital innovation, is a very important springboard to the booming Southeast Asian markets. The next step will be the ratification of the agreement, which, from the EU Commission, will go to the European Parliament for consideration.
English version by the Translation Service of Withub
