The new agreement enhances digital trade connectivity and builds on strong economic ties between Singapore and the European Free Trade Association States.

Singapore, 26 September 2025 – Singapore and the European Free Trade Association (EFTA) States have signed the EFTA-Singapore Digital Economy Agreement (ESDEA) in Switzerland, marking a significant step towards strengthening economic and digital connectivity. The signing was witnessed by Minister-in-charge of Trade Relations, Ms Grace Fu; Swiss Federal Councillor and Head of the Federal Department of Economic Affairs, Education and Research, Mr Guy Parmelin; Iceland’s Ambassador and Permanent Representative to EFTA, WTO and other International Organisations in Geneva, Mr Einar Gunnarsson; Liechtenstein’s Ambassador and Permanent Representative to the United Nations, WTO, EFTA and other International Organisations in Geneva, Mr Frank Büchel; and Norwegian Ambassador to Switzerland, Ms Kjersti Rødsmoen.

The ESDEA is designed to boost connectivity between Singapore and the EFTA States’ digital markets, providing a robust framework to advance end-to-end digital trade. A key feature of the agreement is the assurance of secure and seamless cross-border data flows, particularly beneficial for sectors such as financial services. By setting high-standard rules to promote interoperability in paperless trade and electronic invoicing, the ESDEA fosters a trusted digital environment that gives businesses and consumers greater confidence to engage in the digital economy.

Minister Grace Fu emphasised the significance of the milestone, noting that the agreement would not only enhance cross-border data flows and consumer protection but also position Singapore and EFTA to capture emerging opportunities in the digital realm.

Singapore and the EFTA States – comprising Switzerland, Iceland, Liechtenstein and Norway – enjoy strong trade and investment relations underpinned by the EFTA-Singapore Free Trade Agreement (ESFTA), which has been in force since 2003. In 2023, bilateral services trade exceeded S$30 billion, with nearly half potentially delivered digitally. Financial services data flows alone accounted for approximately 20% of such trade. Once implemented, the ESDEA will reduce barriers to digital commerce and deepen bilateral connectivity in the digital domain, benefiting both businesses and people.

Source: MTI