The United Kingdom and Singapore have commenced discussions on a progressive digital trade agreement, aimed at enhancing digital trade opportunities and cutting regulatory red tape.
- The UK is the first European nation to initiate Digital Economy Agreement negotiations, highlighting its commitment to becoming a global hub for digital trade and services.
- In 2019, 70% of UK services exports to Singapore, including financial and legal services, were digitally delivered, amounting to £3.2 billion.
- Negotiations will focus on establishing open digital markets, ensuring free data flows, and deepening cooperation in fintech and cybersecurity.
- Key stakeholders view this agreement as an opportunity to modernise trade rules and promote trust in digital transactions.
International Trade Secretary Liz Truss and Singapore’s Minister for Trade Relations, Mr S. Iswaran, began negotiations via video call. The UK is the first European country to undertake such discussions, aiming to pioneer a Digital Economy Agreement (DEA) with Singapore.
Both nations are recognised leaders in the digital economy. In 2019, 70% of UK’s service exports to Singapore, valued at £3.2 billion, were delivered digitally, covering sectors from financial services to e-books. This DEA aims to further facilitate UK businesses in delivering services digitally.
The agreement seeks to reduce bureaucratic hurdles, ensuring more efficient trade through digital technologies such as electronic transactions, e-signatures, and e-contracts. This initiative is aligned with the UK government’s strategy to cement the country’s position as a global hub for services and digital trade through modern free trade agreements.
Key focal points of the negotiations include: securing open digital markets to enable exporters to enter new markets; ensuring trusted cross-border data flows while maintaining high personal data protection standards; and promoting digital trading systems to cut red tape, saving time and money for UK businesses.
Additionally, the discussions aim to uphold consumer rights and protect intellectual property, including source code and cryptography. Collaborative efforts will also focus on future growth sectors such as fintech and lawtech, and strengthening cybersecurity capabilities.
International Trade Secretary Liz Truss highlighted the significance of the negotiations, stating that a deal with Singapore would position the UK at the forefront of the digital trade revolution. She emphasised that the UK’s approach to trade is becoming more flexible and proactive, with ambitions to establish a network of advanced, high-standard trade agreements.
Sally Jones of EY UK and Ireland noted that digital transformation is integral to the service sector, and trade deals must reflect current business realities. She stated, “Digital transformation can unlock human potential and accelerate new, better ways of working.”
Julian David, CEO of techUK, expressed support for the negotiation, noting that digital trade is the fastest-growing sector in international trade. He remarked that a UK-Singapore DEA would place the UK among the leading nations in digital trade policy, which is critical for economic recovery.
The UK-Singapore Digital Economy Agreement marks a pivotal step towards modernising trade rules and fostering trust in digital trade.
