LONDON, Dec 9 (Reuters) – Britain said on Thursday it had reached a digital trade deal with Singapore, the first digitally aligned trade deal signed by a European country. The Memorandum of Understanding on Digital Identities aimed to develop mutual recognition and interoperability between the digital identity regimes of the two countries. The goal was to establish a more reliable identity check and process requests faster. While the final text of the deal has yet to be released, today`s announcements suggest that the DEA could help businesses have more open access to both countries` digital economies, improve competition and boost cross-border investment. “We welcome the recognition of Lawtech in the UK-Singapore DEA – a world first for this type of agreement – and hope it is a very copied precedent for future agreements,” said I. Stephanie Boyce, President of the Law Society of England and Wales. The protection of personal data is essential to maintain trust in the digital economy and develop cross-border trade. When companies carry out electronic transactions across borders, personal data is transferred as part of those transactions. They should also monitor the different policies and legislation governing the cross-border processing and transfer of personal data, depending on countries` data protection systems. We hope to conclude more agreements with other like-minded economies in the future. Around 70% of the UK`s cross-border services exports to Singapore in 2019 were also processed digitally, totalling £3.2 billion ($4.23 billion). The UK is Singapore`s largest trading partner for services in Europe and, with over S$100 billion ($72.81 billion) of UK investment stocks in Singapore, is the second largest European investor and the second largest European investment destination in the Asian economy. The United Kingdom and Singapore have reached an agreement in principle on an AED.
This document summarizes the agreement in principle. Electronic invoicing is the automated creation, exchange and processing of payment requests between suppliers and buyers using a structured digital format. AEDs enable interoperability of e-invoicing systems between countries, so that an e-invoice generated in Singapore can be accepted directly by another country`s e-invoicing system. Businesses benefit from shorter invoice processing times and potentially faster payments, which translates into significant cost savings because they don`t have to create and track physical invoices. Digital identifiers (e.B CorpPass in Singapore) provide data from government-verified sources to create a digital user profile. Among other benefits, digital IDs significantly streamline business processes, including business registrations and opening corporate bank accounts. Even tedious processes such as know-your-customer (KYC) checks and invoicing can be done quickly. Through AEDs, we hope to work with partners to support initiatives that promote compatibility between different digital identity regimes.
The UKSDEA is Singapore`s third DEA that has been substantially completed. UkSDEA includes binding disciplines on the cornerstones of the digital economy, such as data, as well as elements of collaboration in a variety of emerging and innovative areas such as artificial intelligence, fintech and regtech, digital identities and legal technology. This publication is on www.gov.uk/government/publications/uk-singapore-digital-economy-agreement-agreement-in-principle-explainer/uk-singapore-digital-economy-agreement-agreement-in-principle-explainer both countries would also seek to enable reliable data flows and data protection for various functions, including financial services. In addition, a “reliable and secure digital environment” would be crucial to encourage and secure business and consumer participation. The AEDs aim to build on Singapore`s extensive network of free trade agreements and other digital cooperation initiatives. They also complement Singapore`s leadership in the World Trade Organization (WTO) as co-organizer (with Australia and Japan) of the Joint Statement Initiative on Electronic Commerce (JSI). This MoU will support the smooth functioning of digital identity systems between the UK and Singapore, enabling businesses and individuals to participate in the international digital economy with more confidence and security. The two countries will work towards the mutual recognition of digital identity approaches that will enable the use of digital identities for cross-border transactions. To learn more about the terms of this agreement, find out how you can benefit from the changing business landscape and assess your priorities, our specialists are at your disposal. Singapore and the UK have concluded negotiations on a digital economy agreement that includes various initiatives, including the establishment of interoperable systems for digital payments, trusted data flows, digital identities and cybersecurity. The Infocomm Media Development Authority (IMDA) is leading Singapore`s digital transformation with infocomm media. To this end, IMDA will develop a vibrant digital economy and a cohesive digital society powered by an exceptional Infocomm Media (ICM) ecosystem – developing talent, building business capacity and enhancing Singapore`s ICM infrastructure.
IMDA also regulates the telecommunications and media sectors to protect consumer interests while fostering a business-friendly environment, and improves Singapore`s data protection system through the Commission on the Protection of Personal Data. For more news and information, visit www.imda.gov.sg or follow IMDA on Facebook and Twitter @IMDAsg. Businesses will benefit from the increasing ease and adoption of digital payments, which will result in faster payments, lower transaction costs, and improved commerce. Businesses will also find it easier to navigate the payment regulations of overseas markets if they are compatible with those in Singapore, creating opportunities for our start-ups and e-payment players. Through the interoperability of digital identities and business information, a company in Singapore could register the company overseas in the future or open a new corporate bank account in a DEA partner country through its CorpPass. Cross-border data flows are becoming increasingly important for the growth of the digital economy, as they support e-commerce and other digitally supported activities, such as data analytics and AI. Under the AEDs, the parties agree to allow the free flow of data across borders and to prohibit the location of data, except for legitimate purposes such as the protection of personal data. This allows for a favorable environment in which companies can do the following: The digital economy is the future. Digitalization and technological disruption, accelerated by the impact of the COVID-19 pandemic, have significantly changed consumer behavior and business models and created new opportunities. For example, e-commerce has allowed manufacturers to reach consumers directly. The rise of platforms and applications with multiple integrated services, from transportation to finance to telemedicine, has changed the way services are used.
Businesses are also increasingly dependent on electronic transactions and digital solutions, from procurement to invoicing to payments. Secure and transparent cross-border data flows are essential for the growth of the digital economy and the protection of consumers` interests. First, government agencies on both sides signed three Memoranda of Understanding (MOUs) last week in the areas of digital commerce, digital identities, and cybersecurity. Together, they aimed to facilitate cross-border services between Singapore and the UK, which amounted to S$22 billion ($16.02 billion) in bilateral commercial services in 2019. The UK deal included “binding disciplines” of the digital economy such as data and cooperation in emerging areas such as artificial intelligence, fintech, digital identities and legal technologies. Under the UKSDEA, Singapore and the United Kingdom are also pursuing cooperation projects that provide a dynamic framework for bilateral cooperation on future and emerging issues. To date, the two countries have signed three memoranda of understanding in the areas of digital trade facilitation, digital identities and cybersecurity. Such partnerships make digital transactions easier, safer and cheaper, enabling businesses in both countries to seize opportunities in the growing digital economy. More information can be found in Appendix B. Britain said the agreement in principle would revise outdated trade rules and open up opportunities for Singapore, which is seen as a global leader in the digital space.
Although the final text has not yet been published, we now know the broad scope of the agreement. .