Digital Trade Agreement between the European Union and the Republic of Singapore (Resolution)

The European Parliament adopted by 572 votes to 18, with 41 abstentions, a non-legislative resolution on the proposal for a Council decision on the conclusion of the Agreement on Digital Trade between the European Union and the Republic of Singapore.

The resolution highlighted that this is the first stand-alone digital trade agreement that the EU has concluded with a partner country, and also the first bilateral digital trade agreement concluded between the EU and an ASEAN member state. It will serve as a benchmark for the agreements the EU is currently negotiating with other Southeast Asian economies.

Objective

The agreement lays down binding rules on trade in goods and services enabled by electronic means. It applies to all types of trade enabled by electronic means and aims to guarantee predictability and legal certainty for online trade, while preserving policy space for the parties, as the agreement aims to uphold the EU’s stringent standards for personal data and privacy protection and both parties retain the right to implement and maintain measures to safeguard personal data and privacy.

The digital agreement will facilitate electronic transactions by introducing electronic signatures and electronic authentication and promote a safe online environment by ensuring consumer protection and protecting consumers’ data. Consumer protection in both the online and offline economy should be guaranteed.

Furthermore, the agreement will create legal certainty for businesses through source code protection and by prohibiting forced technology transfer, while improving access to electronic commerce and simplifying digital trade by reducing the administrative burden for e-commerce by enabling e-invoicing and paperless trading.

Protection of personal data

Stressing the need to protect the EU framework on data and digital rights, the resolution underlined that the agreement’s provisions on free data flows need to be implemented in accordance with the current level of protection in the EU to ensure robust protection of personal data.

However, it noted that some civil society organisations and the European Data Protection Supervisor (EDPS) have expressed concerns about the absence of legally binding language equivalent to the horizontal provisions on cross-border data flows and the protection of personal data and privacy already adopted by the EU.

Parliament believes the agreement should not weaken the Union's ability to maintain its regulatory authority, enforce laws, and safeguard fundamental rights. It stressed the need to enable the regulatory bodies’ ability to ensure that companies comply with EU legislation, such as the AI Act.

The resolution also stressed the importance of developing technical and regulatory standards that allow for broad participation, particularly from SMEs.

Lastly, the Commission is called on to:

- conduct an ex-post evaluation of this agreement and of the impact of its provisions on the regulatory space of the EU and report to the European Parliament on the implementation of the agreement;

- ensure a modern EU digital trade framework by developing a future-proof digital trade policy that safeguards regulatory autonomy, ensures democratic oversight and adapts to technological change.

In parallel, Parliament adopted a legislation resolution on the draft Council decision on the same issue.