EU and Singapore conclude Digital Trade Agreement with strong data transfer rules

The European Union and Singapore have signed a landmark Digital Trade Agreement (DTA) aimed at setting high global standards for digital commerce. Signed by EU Commissioner Maroš Šefčovič and Singapore’s Minister Grace Fu, the agreement introduces a framework for secure, fair, and open digital trade between the two economies, while placing particular emphasis on cross-border data transfer regulation.

Stronger rules for cross-border data transfers

One of the core features of the DTA is its regulation of cross-border data flows. The agreement prohibits unjustified data localisation measures, meaning companies will no longer be forced to store data only within national borders without valid reasons. This is particularly significant for global businesses, as it reduces operational burdens and fosters more seamless digital services across borders.

For individual users, this means better protection of personal data when using international digital services, and smoother access to digital content and e-commerce platforms based in other countries. The agreement also explicitly protects privacy rights and ensures that the EU’s data protection framework remains intact, including adherence to the General Data Protection Regulation (GDPR).

Consumer protection and business trust

The DTA includes provisions on online consumer trust, data privacy, electronic contracts, and safeguards for source code. These rules are designed to provide legal certainty for companies engaging in digital trade while enhancing protection for users. Consumers can expect more consistent privacy protections and less risk of their personal information being mishandled when using apps, platforms, or services operated from abroad.

From a business standpoint, especially for small and medium enterprises, the DTA simplifies digital transactions, reduces compliance complexity, and expands access to global markets. It creates a transparent, rules-based environment where electronic authentication, digital signatures, and secure data transfers are legally recognised and mutually respected.

A model for global digital governance

The EU-Singapore DTA is one of the first standalone digital trade agreements concluded by the EU. Unlike broader trade pacts, this agreement focuses exclusively on the digital economy and is intended to serve as a model for future international cooperation. It reinforces both parties’ commitment to a rules-based digital order and could influence global standards on data governance.

With over half of EU-Singapore services already delivered digitally, the agreement formalises and strengthens an already robust digital relationship. As more of the global economy moves online—over 60% of global GDP now involves digital trade—such agreements are becoming central to international economic policy.

What comes next

The agreement will now go through formal ratification procedures in both jurisdictions. For the EU, this includes approval by the European Parliament. Once ratified, it is expected to provide long-term clarity and stability for digital transactions between the EU and Singapore.

For ordinary users, the agreement means greater trust in cross-border digital services, better protections for personal data, and easier access to innovative digital tools and content. For policymakers and regulators, it sets a precedent for managing the complex intersection of data rights, trade, and global digital governance.