EU–Singapore Digital Trade Agreement

KEY POINTS

Scope

The agreement applies to measures affecting trade enabled by electronic means. It does not apply to:

• audiovisual services;
• broadcasting services;
• information held or processed by or on behalf of public authorities or measures related to such information, with limited exceptions;
• services supplied or activities performed in the exercise of governmental authority.

The agreement affirms each party’s right to regulate within its territory to pursue legitimate policy objectives, including public health, social services, public education, safety, environment or public morals, social or consumer protection, privacy and personal data protection, and the promotion and protection of cultural diversity.

Cross-border data flows

The agreement facilitates cross-border transfers of data by electronic means by prohibiting unjustified localisation requirements to prevent data being transferred out of or into the territory of a party. At the same time, it does not limit the ability of a party to adopt or maintain measures under its legal framework that provides for the protection of the personal data of individuals. In addition, it does not prevent a party from adopting or maintaining necessary and proportionate measures to achieve legitimate public policy objectives.

The operation of these commitments is subject to review.

Protection of personal data

The agreement recognises that individuals have a right to privacy and the protection of personal data and that high and enforceable standards in this regard contribute to trust in the digital economy and to the development of trade. It requires each party to adopt or maintain a legal framework providing for the protection of personal data. It furthermore ensures that those legal frameworks provide for non-discriminatory protection of personal data for individuals.

At the same time, it does not limit a party’s ability to apply its own data-protection rules or instruments governing cross-border data transfers.

Protection of source code

The agreement prohibits requiring the transfer of, or access to, source code of software as a condition for the import, export, distribution, sale or use of software, or of products containing software. At the same time, access to source code remains possible when pursuing legitimate policy objectives.

Facilitation of digital trade

The agreement provides legal certainty for businesses that want to engage in cross-border digital trade, for example, by:

• facilitating the use of electronic contracts, electronic signatures and electronic authentication;
• preventing prior authorisation requirements on the provision of services solely because a service is provided online;
• ensuring interoperability of electronic invoicing frameworks and encouraging cooperation on electronic payments.

The agreement also includes a permanent ban on customs duties on electronic transmissions between the EU and Singapore, building on the World Trade Organization moratorium on customs duties on electronic transmissions.

Consumer protection and trust online

The agreement contains rules on consumer protection in the digital environment, including guarantees against unfair market practices and upholding their information rights with respect to e-commerce transactions. It also lays down rules on unsolicited commercial electronic messages, with a view to protecting end users.

The agreement recognises that open internet access can be achieved by internet access providers treating online traffic equally and by not blocking or slowing down such traffic for competitive advantage.

Transparency and regulatory cooperation

The parties commit to transparency in relation to laws and regulations affecting digital trade. In addition, the agreement promotes regulatory cooperation and dialogue on certain issues relevant to digital trade.