Singapore and EU Sign Digital Trade Agreement, Deepening Cooperation Amid Global Uncertainties

Singapore and the European Union on May 7 inked a digital trade agreement designed to provide greater clarity and legal certainty for consumers and businesses on both sides to transact online more seamlessly.

- Angela Tan

Minister-in-charge of Trade Relations Grace Fu and EU Commissioner for Trade and Economic Security Maros Sefcovic signed the European Union-Singapore Digital Trade Agreement (EUSDTA) at The Treasury in High Street.

The agreement supplements the EU-Singapore Free Trade Agreement (EUSFTA) that entered into force in 2019.

The EUSDTA aims to set global standards for digital trade and cross-border data flows without unjustified barriers. It includes rules on e-signatures, spam and cyber security, among others. It should also lower costs for businesses, boosting services trade.

The EU is Singapore's fifth-largest goods trading partner. In 2024, bilateral trade in goods grew to over $100 billion, representing 7.8 per cent of Singapore's total goods trade.

The EU is also Singapore's second-largest services trading partner, with bilateral trade in services reaching over $110 billion in 2023.

Investment ties remain robust, with the EU being Singapore's second-largest foreign investor and second-largest overseas investment destination.

Singapore is the EU's fifth-largest partner in services trade, and more than half of these services are delivered digitally.

Ms Fu said the signing of the EUSDTA is a significant step forward in deepening digital economic cooperation between Singapore and the EU, given global uncertainties.

She said: "The EUSDTA reflects our shared commitment to foster a trusted, secure and inclusive digital economy, and create new opportunities for our companies and citizens in digital trade.