IKV Chairperson Ayhan Zeytinoğlu made a statement highlighting the importance of the agreement with Singapore, which is the EU’s first digital trade agreement. Chairperson Zeytinoğlu said:

“With the completion of negotiations between the EU and Singapore, the EU is signing its first digital trade agreement with Singapore. This is a significant development for the direction of global trade and also demonstrates the course of the EU’s digital agenda. Global data shows that digital services trade has increased fourfold between 2005- 2022, surpassing 3.3 trillion dollars. This rapidly growing area now constitutes 12% of world trade and is increasing faster than goods trade, accounting for 54% of services trade. By digital trade, we mean all international trade ordered and/or delivered digitally. In addition to emphasising digital connections, it also provides new opportunities, especially for SMEs and small producers. An important aspect of digital trade lies in the rules of digital data exchange. Until now, there has not been a global set of rules regulating this issue; therefore, these rules have been addressed within bilateral or regional trade agreements. By the end of 2022, there were 116 trade agreements with digital trade provisions, with about 44% of all agreements containing a section or article related to digital trade or e-commerce. The agreement with Singapore, which has completed negotiations, will complement the FTA dated 2019. The next step will be the signing and approval procedure. The aim is to connect the two economies better, provide new opportunities for businesses, establish rules that protect consumers, and ensure predictability and legal certainty. This way, it is expected to open up digital trade further, make it more secure, and remove unnecessary barriers. The EU attaches importance to integrating digital trade into its agreements with global partners. Besides this first digital agreement, FTAs with the United Kingdom, Chile, and New Zealand include digital trade chapters. Additionally, there is a cross-border data flow agreement with Japan. The EU is the world’s largest importer and exporter of digitally delivered services. According to 2022 data, 55% of the EU’s service trade was conducted digitally, creating a value of 1.3 trillion euros within EU trade. More than half of the trade between the EU and Singapore is being conducted digitally.”

Chairperson Zeytinoğlu emphasised the importance of this issue for Türkiye and stated:

“The modernisation of the Customs Union with the EU is becoming more urgent for Türkiye day by day. Digital trade is also a subject that is not currently regulated in our trade relationship. Although Türkiye has complied with the EU’s data protection regulation during the visa liberalisation process, the need for reform arises again as the rules in the EU change. As of 17 February 2024, the Digital Services Act regulating digital services in the EU has come into force. Türkiye-EU relations have dragged behind these developments. The relations need to be updated to include regulatory alignment, starting with trade. We have been discussing the modernisation of the Customs Union since 2014, but it has still not been initiated due to political obstacles. In addition to a new Customs Union, the commercial relationship should include green and digital alliances, add sections on digital services trade to the agreement, or be supported by a separate agreement or a decision by the Association Council, as in the case of Singapore. Otherwise, as long as Türkiye-EU relations are not updated, the Customs Union will be an outdated agreement falling behind the developments in international trade.”