New agreement enhances digital trade, deepens cooperation, and sets global benchmarks.
On 7 May 2025, Singapore and the European Union (EU) took a significant step towards deeper digital economic collaboration with the signing of the European Union-Singapore Digital Trade Agreement (EUSDTA). The agreement was signed in Singapore by Minister-in-charge of Trade Relations Grace Fu and EU Commissioner for Trade and Economic Security Maroš Šefčovič.
The EUSDTA is the EU’s first standalone digital trade agreement with an ASEAN country and is expected to enhance digital connectivity, facilitate cross-border data flows, and provide greater legal clarity for digital transactions. It builds upon the existing EU-Singapore Free Trade Agreement (EUSFTA), aiming to strengthen economic ties through rules-based and inclusive digital trade.
Minister Fu highlighted the importance of the agreement in “fostering a trusted, secure, and inclusive digital economy,” particularly in an era marked by global economic uncertainty. Commissioner Šefčovič echoed this sentiment, underlining the need for resilient partnerships and interoperable digital frameworks.
With trade in services between the two partners exceeding S$110 billion in 2023 and digital transactions making up a large portion of this volume, the agreement is set to support businesses—especially SMEs—in expanding their digital reach. Additionally, it commits both parties to cooperation in cybersecurity, personal data protection, and digital inclusion.
The EUSDTA will undergo ratification procedures in both regions before coming into force, signalling the start of a new chapter in EU-Singapore digital cooperation.
