EFTA and Singapore conclude negotiations on Digital Economy Agreement

The European Free Trade Association (EFTA) States and Singapore concluded negotiations on the EFTA–Singapore Digital Economy Agreement (DEA) on 10 July 2025.

The DEA establishes a framework for digital trade between our countries, with high-standard rules and commitments that seek to boost digital trade, enable open and secure data flows, and build trust in digital systems for businesses and consumers. This will provide our businesses and citizens with the certainty and confidence they need to access opportunities in the fast-growing digital economy. 

To facilitate seamless cross-border digital trade, the DEA includes legally binding provisions that permanently prohibit customs duties on electronic transmissions, facilitate paperless trade administration, and support electronic payments and electronic invoicing. These provisions will enable more efficient transactions, while reducing costs for consumers and businesses. In addition, the DEA will ensure the free flow of data across borders with adequate safeguards. This will remove unnecessary barriers to trade by allowing businesses to choose where their data is stored and providing certainty on conditions where data localisation is prohibited. To promote a trusted and secure digital environment, the DEA includes provisions on source code and cryptography that protect companies against forced transfers of technology, including intellectual property. The DEA also seeks to foster online consumer trust by upholding the protection of personal data and safeguarding online consumers from fraudulent and deceptive conduct. Finally, the DEA contains forward-looking provisions on cooperation in a wide range of areas including artificial intelligence, financial technology and cybersecurity.

The DEA will form an integral part of the EFTA–Singapore Free Trade Agreement that entered into force in 2003. It is a key initiative demonstrating the leading role of Singapore and the EFTA States in setting high-standard digital trade rules. The DEA also builds on and complements ongoing international efforts and agreements, including the WTO Joint Statement Initiative on Electronic Commerce. The EFTA States and Singapore will now work towards the signing of the DEA and its entry into force.  

Negotiations on the DEA were launched in February 2023. Esther Hauert Wermuth, Head of the Trade in Services Division at the Swiss State Secretariat for Economic Affairs, acted as the EFTA spokesperson, while Lai Shu Ying and Chua Shun Loong, respectively the current and previous Directors of the Europe and Central Asia Division in Singapore’s Ministry of Trade and Industry, headed Singapore’s delegation. 

Overview of the DEA  

Find out more in our infographic here.
 

Economic relations between the EFTA States and Singapore

Total trade between the EFTA States and Singapore has grown significantly over the last 20 years. In 2024, total merchandise trade between the EFTA States and Singapore reached nearly EUR 7.5 billion. The main imports into the EFTA States were pharmaceutical products, while most exports to Singapore were organic chemicals, machinery, and clocks and watches. Services trade and foreign direct investment between the EFTA States’ and Singapore’s knowledge- and technology-driven economies are likewise at a high level. 

Read more about merchandise trade between EFTA and Singapore here.