Singapore and European Free Trade Association States sign Digital Economy Agreement to strengthen economic and digital connectivity

29 October 2025

On 26 September 2025, the Ministry of Trade and Industry (“MTI”) announced that Singapore and the European Free Trade Association (“EFTA”) States have signed the EFTA-Singapore Digital Economy Agreement (“ESDEA”) in Switzerland. This follows the conclusion of negotiations between Singapore and EFTA on 10 July 2025.

The ESDEA will boost connectivity between Singapore and the EFTA States’ digital markets and establish a robust framework to advance end-to-end digital trade between both sides. Notably, the ESDEA provides businesses with greater assurance that data will be able to flow securely and seamlessly across borders, including for the financial services sector which Singapore and the EFTA States cooperate closely in. Through high-standard rules that promote interoperable digital systems in areas such as paperless trade and electronic invoicing, the ESDEA also fosters a trusted digital environment and gives businesses and people confidence to participate in the digital economy.

Singapore and the EFTA States share strong trade and investment relations, underpinned by the EFTA-Singapore Free Trade Agreement which entered into force in 2003. MTI reports that in 2023, bilateral services trade between Singapore and the EFTA States exceeded S$30 billion, of which almost half could have been digitally delivered. Financial services data flows accounted for approximately 20% of such digitally delivered services. When implemented, the ESDEA will remove unnecessary barriers to digital trade and deepen the parties’ economic connectivity in the digital domain.

Reference materials

The press release is available on the MTI website www.mti.gov.sg.