Singapore and the European Free Trade Association (“EFTA“) States have successfully concluded negotiations on the EFTA-Singapore Digital Economy Agreement (“ESDEA“) on 10 July 2025. The ESDEA establishes a robust framework for digital connectivity between Singapore and the EFTA States, featuring rules and commitments designed to boost digital trade, enable open and secure cross-border data flows, and promote interoperability between digital markets.
The key features of the ESDEA include the following:
- Enabling open and secure data flows
- Cross-border data flows: Singapore and EFTA will allow the free flow of data across each other’s territories with adequate safeguards and prohibit requirements to store data in a specific location.
- Personal data protection: Singapore and EFTA will maintain a legal framework to protect the personal data of individuals and will publish information on personal data protection rights accorded to individuals.
- Open government data: Singapore and EFTA will cooperate on best practices to enhance access to government data, with a view to support business and research opportunities for small and medium-sized enterprises.
- Advancing end-to-end digital trade
- E-payments: Singapore and EFTA will encourage the adoption of internationally accepted standards, promote interoperability between e-payment systems, and facilitate innovation and competition in the e-payment ecosystem.
- E-invoicing: Singapore and EFTA will ensure that the implementation of measures on e-invoicing facilitates interoperability between both sides’ e-invoicing systems to support cross-border transactions.
- Paperless trading: Singapore and EFTA will accept electronic versions of trade administration documents required for the import, export, or transit of goods, and make all trade administration documents available in electronic form.
- Customs duties: Singapore and EFTA will not impose customs duties on electronic transmissions.
- Fostering trust and security in the digital environment
- Source code and cryptography protection: Singapore and EFTA will not require the transfer of or access to source code or crypto keys as a condition of market access.
- Artificial Intelligence (“AI”): Singapore and EFTA will promote the ethical, trusted and safe use of AI.
- Cybersecurity: Singapore and EFTA will collaborate to strengthen cybersecurity response mechanisms, and build the capabilities of the workforce in addressing cybersecurity risks.
- Online consumer protection: Singapore and EFTA will adopt or maintain measures which prohibit fraudulent, misleading, or deceptive commercial conduct harmful to consumers involved in electronic commerce.
- Enhancing participation and access to opportunities in the Digital Economy
- Digital participation of Small and Medium Sized Enterprises (“SMEs”): Singapore and EFTA will cooperate to exchange information and best practices in leveraging digital tools and technology to encourage SME growth.
- Digital inclusion: Singapore and EFTA will cooperate to reduce barriers to accessing digital trade opportunities.
Click on the following link for more information:
- Ministry of Trade and Industry (“MTI“) Press Release titled “Singapore and the European Free Trade Association successfully conclude negotiations on a Digital Economy Agreement” (available on the MTI website at mti.gov.sg)
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