The UK and Singapore reach Agreement in Principle on groundbreaking Digital Economy Agreement
After six months of negotiations - during which the British Chamber of Commerce Singapore provided several opportunities for businesses to share their observations and hopes for an agreement - International Trade Secretary Anne-Marie Trevelyan and Singapore Minister-in-charge of Trade Relations S. Iswaran reached an agreement in principle on a Digital Economy Agreement (DEA) that will cut costs, slash red tape and pave the way for a new era of trade. It is the first digitally-focused trade agreement ever signed by a European nation.
Currently, a third of the UK's exports to Singapore are digitally delivered, particularly in services sectors such as finance and advertising, and in engineering.
Commenting alongside our colleagues in the British Chambers of Commerce in the UK, our Executive Director David Kelly said of the agreement:
“We are delighted to see the announcement of this agreement today. The British Chamber of Commerce Singapore has been helping businesses feed their observations into the research conducted on these proposals throughout this year.
“We look forward to working with the Department for International Trade and the Singapore Ministry of Trade and Industry to provide businesses with an easy path to using the agreement. This will help both British and Singaporean companies, based in Singapore and in the UK, by supporting frictionless trade and opportunities for growth."
International Trade Secretary Anne-Marie Trevelyan said:
"This cutting-edge agreement with Singapore links two of the world’s most dynamic hi-tech hubs and plays to our strengths as pioneers in digital trade. Negotiated in just six months, it is the first digital trade deal ever signed by a European nation and will slash red tape, cut costs and support well-paid jobs across the whole UK.
Digital trade is creating a new global economy, but it is still largely governed by old-fashioned rules that pre-date the digital revolution of the past 20 years. We’re using our independent trade policy to strike ground-breaking agreements that update these rules for the digital age and connect UK businesses to the biggest and fastest growing markets in the world."
In a social media post announcing the agreement, Minister S Iswaran said:
"Building on the UK-Singapore Free Trade Agreement, the UKSDEA will further strengthen our robust and longstanding bilateral economic relationship. The agreement is an ambitious and cutting-edge agreement that will set a global benchmark for high-standard digital trade rules, and benefit our people and businesses, especially our SMEs. In particular, it will advance end-to-end trade by promoting interoperable electronic documents, helping to reduce processing time and generating cost-savings for businesses. It will also enable trusted data flows and facilitate a trusted and secure digital environment for our people and businesses."
"I look forward to working closely with Secretary Trevelyan to ensure the swift entry-into-force of the UKSDEA and meeting her in Singapore for the signing of the DEA early next year."
In her own social media announcement, Her Majesty's Trade Commissioner for Asia Pacific, Natalie Black CBE, said of the agreement:
"The next generation Digital Economy Agreement (DEA) will provide modernised digital trade rules, remove barriers and help reduce costs for businesses. It has been secured thanks to hard-working teams in the UK and Singapore."
"The DEA is set to open a new era of digital trade across two of the world’s most digitally advanced countries. This ground-breaking model will also help the UK champion new trade opportunities in a regional digital economy projected to hit $1trn over the next decade."
Singapore's Ministry of Trade and Industry summarise the elements of the agreement in the infographic below:
