The European Union (EU) and Singapore have signed their Digital Trade Agreement (DTA), following the approval given by the Council, bringing it one step closer to entering into force. The agreement was signed on 7 May 2025 in Singapore, between Singapore Minister for Trade Relations Grace Fu and EU Commissioner for Trade and Economic Security Commissioner Maroš Šefčovič.
The agreement is the first standalone digital trade agreement that the EU has signed with a third country, even as it continues negotiations with South Korea. Singapore has concluded similar digital economy agreements with the UK, South Korea, Australia, Chile and New Zealand. The EUSDTA will complement the EU-Singapore Free Trade Agreement which is already in force, by building a secure, interoperable, and innovation-driven digital economy between the two economies, and is expected to serve as a model for future digital trade partnerships globally.
The EU-Singapore DTA is part of the broader EU strategy to deepen digital cooperation with key partners in the Indo-Pacific and is closely aligned with Singapore’s ambition to establish itself as a trusted digital hub. It further deepens EU-Singapore economic ties and highlights a shared commitment to an open, rules-based digital economy grounded in trust and transparency.
Benefits to Businesses
The EUSDTA brings certain benefits to businesses and consumers including:
- Unrestricted Cross-Border Data Flows
The agreement prohibits unjustified data localization requirements, allowing data to flow freely across borders—essential for sectors like finance, logistics, cloud computing, and e-commerce. Companies operating in both jurisdictions will benefit from legal certainty and reduced compliance burdens when transferring data internationally.
- High-Level Protection for Personal Data
Both parties reaffirm their commitment to data protection and privacy standards. The agreement includes safeguards to ensure that data flows do not undermine consumer trust or compromise regulatory autonomy, in line with the EU’s General Data Protection Regulation (GDPR) and Singapore’s Personal Data Protection Act (PDPA).
- Enhanced Digital Trade Infrastructure
By recognizing e-signatures, e-invoicing, and other digital authentication tools, the agreement simplifies digital transactions across borders. This improves efficiency and lowers transaction costs—particularly helpful for SMEs and startups entering new markets.
- Support for SMEs and Digital Inclusion
Special provisions aim to help small and medium-sized enterprises (SMEs) engage in cross-border e-commerce. These include access to digital tools, online trade information, and capacity-building initiatives, helping them expand internationally.
- Promotion of Emerging Technologies
The DTA promotes an innovation-friendly environment by preventing barriers to emerging technologies like artificial intelligence, blockchain, and digital identity systems. It encourages regulatory cooperation and voluntary frameworks that facilitate responsible innovation.
- Strengthened Cybersecurity Cooperation
Both sides agreed to promote best practices in cybersecurity risk management and information sharing. Businesses can expect more secure digital trade channels and better protection of their digital assets.
The DTA will now need to be approved by the European Parliament and ratified by both sides before entering into force. The texts of the DTA can be accessed here: EU-Singapore agreements
