Negotiations on EFTA-Singapore Digital Economy Agreement successfully concluded
29 July 2025
On 10 July 2025, Singapore and the European Free Trade Association (“EFTA”) States successfully concluded negotiations on the EFTA-Singapore Digital Economy Agreement (“ESDEA”).
The ESDEA will provide a clear framework on the rules and standards for digital trade and cross-border data flows, enabling seamless and efficient cross-border digital transactions and establishing a trusted environment for digital trade between Singapore and the EFTA States.
The key features of the ESDEA are as follows:
- Enabling open and secure 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. To promote consumer trust in the digital economy, the parties will maintain a legal framework to protect the personal data of individuals, taking into account internationally established principles and guidelines. The parties 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 (“SMEs”).
- Advancing end-to-end digital trade: To support the development of efficient and secure cross-border e-payments, Singapore and EFTA will encourage the adoption of internationally accepted standards, promote interoperability between e-payment systems, as well as facilitate innovation and competition in the e-payment ecosystem. Singapore and EFTA will also implement measures to facilitate interoperability between both sides’ e-invoicing systems to support cross-border transactions.
To advance digitalisation and reduce the cost of business transactions, 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. There will be no custom duties on electronic transactions.
- Fostering trust and security in the digital environment: To give software developers certainty that source code and crypto keys developed and used by companies will be protected, Singapore and EFTA will not require the transfer of or access to this confidential information as a condition of market access. In terms of artificial intelligence (“AI”) technologies, Singapore and EFTA will promote the ethical, trusted, and safe use of AI, guided by interoperable and internationally aligned governance frameworks. Both sides will also collaborate to strengthen cybersecurity response mechanisms, and build the capabilities of the workforce in addressing cybersecurity risks. Online consumer protection will be strengthened as 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: Singapore and EFTA will cooperate to exchange information and best practices in leveraging digital tools and technology to encourage growth of SMEs. The parties will also work together to reduce barriers to accessing digital trade opportunities, including by sharing best practices that promote inclusive participation in the digital economy.
The ESDEA will form an integral part of the EFTA-Singapore Free Trade Agreement which entered into force in 2003.
Reference materials
The press release is available on the Ministry of Trade and Industry website www.mti.gov.sg at this webpage.