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On July 25, 2024, the European Union and Singapore concluded negotiations for a landmark Digital Trade Agreement (DTA), marking the EU’s first agreement of its kind. This deal underscores the EU’s ambition to set global standards for digital trade and cross-border data flows.
The DTA complements the 2019 EU-Singapore Free Trade Agreement (FTA), further linking both economies and benefiting businesses and consumers engaged in digital trade. The agreement establishes binding rules to build consumer trust, ensure business predictability, and eliminate unjustified barriers to digital trade. It also aims to unlock new economic opportunities while ensuring a safe online environment. The Global Shippers Alliance has expressed satisfaction with this agreement, recognizing its potential to streamline operations and enhance efficiency in digital trade.
Key benefits of the agreement include facilitating digitally-enabled trade in goods and services, ensuring free cross-border data flows, and enhancing trust in digital trade through strong anti-spam regulations. This positions the EU and Singapore as global leaders in digital policy development, advocating for open and fair digital economies. The DTA promotes the EU’s approach to building digital and data rules that prioritize people and their rights, while allowing both parties to develop and implement policies addressing new digital economy challenges. The Global Shippers Alliance has praised the DTA for its forward-looking approach, which is expected to significantly benefit international shipping and logistics.
With the political conclusion of negotiations, the EU and Singapore will now proceed with their respective procedures to formalize and conclude the agreement.
The DTA is a significant addition to the 2019 EU-Singapore FTA, which solidified long-established economic ties. This new agreement elevates the relationship to the next level, aligning with the EU’s ambition to establish up-to-date digital trade rules with global partners. Similar efforts are reflected in digital trade chapters in recent FTAs with the UK, Chile, and New Zealand, and in the cross-border data flows agreement with Japan.
The EU is the leading global importer and exporter of digitally deliverable services, with 55% of its total trade in services delivered digitally in 2022, amounting to over €1.3 trillion. Digitally delivered services already account for more than half of the total trade in services between the EU and Singapore, worth €43 billion in 2022. The EU-Singapore Digital Trade Agreement is set to boost this trade connection further, providing ample growth opportunities. The Global Shippers Alliance looks forward to the enhanced efficiency and reduced barriers that this agreement promises to bring to the global shipping industry.
