Digital Economy Agreement

As our parallel talking trade describes today, governments have been working on several options to try to develop rules to govern the digital world. Solutions range from unilateral approaches to multilateral approaches. The Australian Pact was the second of these agreements for Singapore, which aimed to establish rules on digital trade and cooperation between digital economies. Through the Digital Economy Agreements, the city-state hoped to “develop an international environment to promote interoperability of standards and systems” and to support local businesses, particularly small and medium-sized enterprises (SMEs), that introduce digital commerce and e-commerce. It may be that one aspect or provision of the DEPA, in a way that cannot be expected today, will be of undue importance. For example, the rules of non-discrimination in digital products (3.3) could be of paramount importance to businesses, as the digital economy continues to develop in areas that are not yet imaginable. E-Bill is the automated creation, exchange and processing of payment requests between suppliers and buyers in a structured digital format. AEDs allow for the interoperability of electronic billing systems between countries, so that an electronic invoice based in Singapore can be accepted directly by another country`s electronic billing system. Businesses benefit from shorter invoice processing times and potentially faster payment, resulting in significant savings, as there is no need to generate and track physical invoices.

Module 3 promises that digital products will not face tariffs in DEPA countries (3.2), as companies have fewer discrimination problems as national treatment is assured (3.3). These are important promises for businesses because they increase security and reduce risk. A Digital Economy Agreement (DEA) is a treaty that sets rules for digital commerce and the cooperation of the digital economy between two or more economies. Through the DEA with key partners, Singapore hopes to develop an international framework to promote interoperability of standards and systems and to support our businesses, particularly SMEs, in digital commerce and e-commerce. The country`s government`s definition of “digital economy” and “digital commerce” represents more than $500 million ($352.49 million) to support local businesses in their digital transformation efforts. In particular, the introduction of electronic payments, electronic billing and advanced digital tools. DEPA is in the middle.