Singapore inks pact with four European states to boost digital trade
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(From left) EFTA secretary-general Kurt Jager, Liechtenstein’s ambassador to EFTA Frank Buchel, Minister-in-charge of Trade Relations Grace Fu, Swiss federal councillor Guy Parmelin, Iceland’s ambassador to EFTA Einar Gunnarsson and Norwegian ambassador to Switzerland Kjersti Rødsmoen.
PHOTO: MTI
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SINGAPORE – A new agreement between Singapore and the European Free Trade Association (EFTA) is set to boost cross-border data flows for key sectors such as financial services.
The EFTA-Singapore Digital Economy Agreement (ESDEA) will improve connectivity between the Republic and the EFTA states’ digital markets and establish a robust framework to advance end-to-end digital trade between both sides, the Ministry of Trade and Industry (MTI) said on Sept 26.
The EFTA states are Iceland, Liechtenstein, Norway and Switzerland.
The agreement, signed on Sept 25, will provide 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, the ministry added.
The ESDEA will foster high-standard rules that promote interoperable digital systems in areas such as paperless trade and electronic invoicing.
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.”
Other key features of the agreement include maintaining a legal framework to protect the personal data of individuals, cooperating on best practices to enhance access to government data and promoting interoperability between e-payment systems.
MTI said bilateral services trade between Singapore and the EFTA states in 2023 was over $30 billion, of which almost half could have been digitally delivered. Financial services data flows accounted for approximately 20 per cent of such digitally delivered services.
When implemented, the ESDEA will remove unnecessary barriers to digital trade and deepen Singapore and the EFTA states’ economic connectivity in the digital domain, benefiting businesses and people, said MTI.
