Singapore Pushes for EU-ASEAN Digital Trade Agreement Amid Global Trade Tensions

Singapore is actively seeking a digital economic agreement between the Association of Southeast Asian Nations (ASEAN) and the European Union, despite increasing global trade uncertainties, a top government official stated today.

Deputy Prime Minister and Minister for Trade and Industry Gan Kim Yong, speaking at the Singapore Fintech Festival, emphasized the importance of a “multilateral, rules-based trading system.” He suggested that while full integration isn’t on the table, collaboration is achievable. “If we are able to bring both EU and ASEAN together to discuss a digital economic agreement between EU and ASEAN, I think there will be a major breakthrough,” Gan said in a fireside chat with DBS CEO Tan Su Shan. “EU will not be part of ASEAN. ASEAN will not be part of EU, but it doesn’t stop [the] EU and ASEAN [to] come together to discuss areas that we can work together.”

The move comes as Southeast Asia’s digital economy continues to expand rapidly, reaching over $300 billion in gross merchandise value in 2025, according to the 2025 Google e-Conomy SEA report. Singapore also aims to strengthen trade ties with the Gulf Cooperation Council and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), the latter formed after the United States withdrew from the original Trans-Pacific Partnership. This diversification of trade partnerships is seen as crucial for mitigating risks associated with geopolitical instability and protectionist measures. Further details on Singapore’s trade strategy can be found on the Ministry of Trade and Industry website.

Gan also highlighted the need to reform the World Trade Organization (WTO), stating it remains a vital foundation for global trade but requires modernization. “WTO is still [an] important foundation for this rules-based trading system,” he said. “We will need to transform because the current design architecture of WTO may no longer be workable, and it’s important for us to come together to discuss what is the way forward, what are the areas that require transformation.” Officials indicated that discussions with both the EU and ASEAN will begin with a focus on establishing basic rules for digital economic collaboration, with further steps to be considered later.