Singapore, Britain near the finish line for digital economy deal on trade, tech, data

SINGAPORE has "substantially concluded negotiations" on a digital economy agreement (DEA) with the United Kingdom, the Ministry of Trade and Industry, Ministry of Communications and Information, and the Infocomm Media Development Authority jointly said on Thursday (Dec 9), while the British Department for International Trade called the outcome of talks an "agreement in principle".

The trade deal - Singapore's third DEA - is intended to boost digital trade and data flows, such as promotion of interoperable e-payment systems and the prohibition of local data storage requirements.

It will also encourage digital economy participation, through channels such as online consumer protection rules, and e-commerce platform access for small businesses.

Singapore and Britain kicked off negotiations on the agreement in June, and The Business Times understands that the agreement is expected to enter into force in 2022.

"The agreement includes binding disciplines on cornerstones of the digital economy, such as data, as well as cooperative elements in a wide range of emerging and innovative areas such as artificial intelligence, fintech and regtech, digital identities and legal technology," the Singapore authorities said in their joint statement.

The latest planned deal follows a digital economy partnership agreement with Chile and New Zealand, and a DEA with Australia.

Singapore also opened talks just this week on strengthening digital trade with the European Union, as Minister-in-charge of Trade Relations S Iswaran met European Commission executive vice-president and trade commissioner Valdis Dombrovskis in Brussels.

The update on the progress of the latest DEA came after an in-person bilateral meeting between Iswaran and his counterpart, Anne-Marie Trevelyan, in London.

Saying in a statement that Singapore's DEAs build on and enhance the links in free trade agreements, Iswaran added that the planned deal with Britain "will set a global benchmark for high-standard digital trade rules, and benefit people and businesses in our two countries" - including small and medium-sized enterprises.

Trevelyan, International Trade Secretary for the UK, separately said: "This cutting-edge agreement with Singapore links two of the world's most dynamic high-tech hubs and plays to our strengths as pioneers in digital trade."