- Singapore and EFTA sign Digital Economy Agreement to boost cross-border data flows.
- ESDEA strengthens digital trade, e-payments, paperless systems, and consumer protection.
- The agreement enhances $30 bilateral trade, especially in the financial services and e-commerce sectors.
A new agreement between Singapore and the European Free Trade Association (EFTA) is anticipated to improve cross-border data exchanges for essential industries such as financial services.
The EFTA-Singapore Digital Economy Agreement (ESDEA) will improve links between the Republic and the digital markets of EFTA nations, establishing a robust basis for advancing comprehensive digital trade between the two parties, the Ministry of Trade and Industry (MTI) announced on September 26.
The EFTA member countries are Iceland, Liechtenstein, Norway, and Switzerland. The agreement, concluded on September 25, guarantees that businesses can rely on the secure and efficient movement of data internationally, especially aiding the financial services industry, where Singapore works closely with the EFTA countries, the ministry stated.
The ESDEA will encourage top-quality regulations that support interoperable digital systems in domains like paperless trade and electronic billing.
Minister-in-charge of Trade Relations Grace Fu said, “The signing of the ESDEA marks an important milestone in expanding our bilateral trade into the digital realm.
“By facilitating open and secure cross-border data flows, the agreement will provide businesses with greater flexibility and certainty in digital trade, while enhancing the protection of consumers engaged in e-commerce. As we navigate the changing economic order, it is important for like-minded partners to cooperate and seize new opportunities in the digital economy.”
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Other key elements of the agreement include maintaining a legal framework to protect personal data, working together on best practices to enhance government data access, and encouraging interoperability between electronic payment systems.
MTI reported that in 2023, the bilateral trade in services between Singapore and the EFTA countries surpassed $30 billion, with nearly half potentially being delivered digitally. Data flows from financial services, representing about 20 percent of these digitally provided services.
Once implemented, the ESDEA will eliminate redundant obstacles to digital trade and enhance the economic links between Singapore and the EFTA countries in the digital sector, benefiting both businesses and individuals, according to MTI.