What is a Digital Economy Agreement (DEA)?

The objectives of a DEA are to:

1. facilitate seamless end-to-end digital trade;
2. enable trusted cross border data flows; and
3. build trust in digital systems  

This is achieved by a formal agreement between countries on:

• framework for cooperation;
• benchmark-setting;
• collaboration; and
• governance

Typical areas of coverage include:

• digital trade of goods/services;
• digital identities;
• electronic submission of documentation;
• e-payments;
• e-invoicing;
• cross-border data flows for use cases such as customer insights, regulatory risk management and compliance, operations, and better provision of services; and
• artificial intelligence (AI)

What DEAs are in place with Singapore already?

Singapore has concluded negotiations on two DEAs that are already in force:

1. Digital Economy Partnership Agreement (DEPA) – with Chile and New Zealand; and
2. Singapore-Australia Digital Economy Agreement (SADEA)

Negotiations are underway with the Republic of Korea and are expected to begin soon with the UK.

Through DEAs with key trading partners, Singapore hopes to develop international frameworks to foster interoperability of systems and frameworks, and support businesses, especially SMEs, to engage in e-commerce and digital trade. Former Minister for Trade & Industry, Chan Chun Sing, explains the Singapore perspective:

Digital trade is a key source of our economic growth. Businesses that are able to navigate and tap on international markets in the new digital environment will have a competitive advantage. Singapore is a strong proponent of an integrated, global digital economy.

What does this mean for the UK and for my business?

The UK and Singapore announced in December 2020 the intention to launch negotiations for a Digital Economy Agreement (DEA). The DEA will aspire to deliver an ambitious model for international digital trade rules and cooperation.

It will aim to ensure an open, thriving, and safe digital environment for UK and Singapore consumers and businesses. The agreement will promote the flow of data across borders while maintaining high levels of personal data protection. It will also promote interoperable digital systems to connect our thriving innovation ecosystems, harness the interaction between financial services and the digital economy, and help shape global standards for effective regulation in key areas such as cybersecurity and emerging technology.