The European Union (EU) and Singapore have made a significant advancement in their trade relations by signing a groundbreaking Digital Trade Agreement (DTA). On April 14, 2025, the agreement was finalized by Commissioner for Trade Maroš Šefčovič and Singapore Minister-in-charge of Trade Relations Grace Fu Hai Yien. This DTA symbolizes a major milestone in deepening cooperation in the digital sector between the two entities while reinforcing their commitment to uphold a rules-based trading environment.
The newly established DTA is designed to ensure that both the EU and Singapore remain at the forefront of digital economic developments. It sets high standards for digital trade rules and aspires to elevate global standards. The agreement builds on the EU’s commitment to prioritizing individual rights in the digital economy.
According to officials, the DTA is poised to enhance consumer protection and facilitate seamless cross-border data flows, providing legal certainty for businesses engaged in digital trade. The agreement directly addresses various areas such as the protection of privacy and personal data, electronic contracts, and regulatory cooperation, effectively removing unjustified barriers to digital economic interactions.
Furthermore, it includes measures to prevent protectionist policies by banning unjustified data localization efforts, thereby ensuring a trustful environment for cross-border data flows. The agreement has been carefully drafted to respect the EU’s existing privacy framework and allow adherence to public policy objectives. As the next step, both the EU and Singapore will initiate their respective ratification processes for the DTA, with the European Parliament’s consent required before formal implementation.