Impact of the EU-Singapore Digital Trade Agreement

VTV.vn - The EU-Singapore Digital Trade Agreement promotes free data flows, secure digital transactions and opens new directions for cooperation between the EU and ASEAN.

In recent years, global trade has witnessed a strong shift, where data has become a decisive factor for all transactions, from financial services, logistics to high-tech manufacturing. In this context, cooperation mechanisms such as the Digital Trade Agreement between the European Union (EU) and Singapore are creating a framework of digital trade standards, where data flows freely, electronic transactions are recognized and businesses are given maximum legal protection.

What is special is that these mechanisms not only have bilateral significance but also open up a new direction for the ASEAN region - including Vietnam, on the path of digitalizing trade.

EU and Singaporean businesses now have a legal framework to conduct secure, fast and transparent digital transactions, thanks to new regulations in the EU-Singapore Digital Trade Agreement, according to a representative of the European Chamber of Commerce.

“We need to avoid data localization as much as possible. And we also need to ensure that no customs duties are applied to data flows,” said Luisa Santos, Deputy Director General of Business Europe.

Mr. Maros sefcovic - European Commissioner for Trade in Information: "Over the past few years, EU-Singapore trade turnover has reached more than 130 billion Euros, growing by more than 20%. But more impressively, more than half of this growth belongs to the service sector, in which digital trade is growing much faster than traditional trade".

Not being forced to store data domestically, and having invoices and digital signatures recognized, all electronic transactions from Singapore can directly access the EU market, instead of having to go through a transit center. This is the basis for Singapore to strengthen its position as the digital center of the region, attract investment and become the gateway for the EU to access ASEAN.

"This is Singapore's largest bilateral digital economy deal to date and the EU's first standalone bilateral digital trade deal with another country," said Singapore's Trade Minister Grace Fu.

"Today you cannot trade goods without data flows. In the future, having a similar agreement with Vietnam will also be important for trade between Europe and Vietnam," said Ms. Lusia Santos - Deputy General Director of Business Europe.

Source: https://vtv.vn/tac-dong-tu-hiep-dinh-thuong-mai-ky-thuat-so-eu-singapore-10025102915480559.htm