The EU and Singapore have made a significant advancement in their trade relations with the signing of a landmark Digital Trade Agreement (DTA). Signed by Commissioner for Trade and Economic Security Maroš Šefčovič and Singapore Minister-in-charge of Trade Relations Grace Fu Hai Yien, this Agreement marks a milestone in digital cooperation. It shows both sides commitment to strengthen their long-standing economic ties.
The DTA enables the EU and Singapore to keep up with the fast-changing digital economy. It sets high standards for digital trade rules and raises global ambition in this field. It builds on the EUs approach that prioritizes people and their rights.
Fostering open and competitive digital economies
Singapore is a key partner for the EU. The DTA shows both partners commitment to lead in digital developments and support open digital economies that are fair and free of unjustified trade barriers.
The DTA will enhance consumer protection, facilitate trusted cross-border data flows, and provide legal certainty for businesses engaging in digital trade. It addresses privacy protection, customs duties on electronic transmissions, and trust in online consumers.
The DTA will prevent protectionist practices by prohibiting unjustified data localization measures. This ensures trusted data flows and protection of source code from unauthorized disclosure. The Commission ensured full respect for the EUs privacy framework.
Next Steps
The EU and Singapore will follow their respective procedures for ratifying the DTA. On the EU side, formal ratification requires the European Parliaments consent.
The DTA text is already publicly available as an annex to the 14 April 2025 Council Decision and will soon be published on the Commissions website.
Background
The EU-Singapore DTA is a modern, standalone agreement separate from the Free Trade Agreement and Investment Protection Agreement between the parties.
Negotiations for the DTA began on 20 July 2023 by Commission Executive Vice-President Valdis Dombrovskis and Singaporean Minister for Trade and Industry Gan Kim Yong.
After the political conclusion of negotiations on 25 July 2024, the Council authorized the Commission to sign the DTA on 14 April 2025. The signature of an international agreement validates the text and indicates the parties willingness to formally approve it.
Digital trade is growing in size and importance: over 60% of global GDP is now linked to digital transactions. In 2019, global online sales rose to over $26 trillion. The EU is the worlds largest exporter of services, with 48% being digital. In 2022, more than half of the total trade in services between the EU and Singapore was digitally delivered (55% - €43 billion).
For More Information