European Commission seeks approval for EU-Singapore agreement on digital trade - Trade Treasury Payments

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European Commission seeks approval for EU-Singapore agreement on digital trade

3 February 2025

The European Commission is seeking approval to sign its first digital trade agreement with Singapore. If authorised by the Council, the agreement would promote cross-border digital commerce between the two nations and help to set a precedence for digital trade more widely.

The proposed agreement aims to promote digital trade between the EU and Singapore by cutting red tape and enhancing legal clarity for businesses. The EU considers Singapore a key digital partner in the Indo-Pacific and hopes to use this agreement with the city-state to solidify its economic and strategic ties in the region.

The Council originally approved the Commission’s negotiating mandate in June 2023. Since then, both parties have engaged in detailed negotiations to craft a technology- and data-flow-friendly agreement that remains legally compatible with existing EU law.

This agreement builds on the EU-Singapore trade relationship, which was formalised through agreements in 2011 and 2019. With digital trade now representing a growing share of international commerce, the new DTA addresses gaps not covered by earlier treaties.

Digital trade broadly refers to commerce in goods and services enabled by digital technologies. This includes everything from cross-border data transfers to digital services and even the technological underpinnings of production and logistics.

The Council will now review the proposal and, if it decides to authorise the Commission to proceed, the agreement will be signed and subsequently submitted to the European Parliament for ratification. More information on the agreement and its implications can be found on the European Commission’s trade website.