BRUSSELS, 31 January 2025 – The European Union and the Republic of Singapore plan to extend a pioneering digital trade agreement incorporating key elements of the Model Law on Electronic Transferable Documents (MLETR) developed by the United Nations Commission on International Trade Law (UNCITRAL) as a step to modernise cross-border trade.
MLETR Integration in the Digital Trade Agreement
The agreement recognizes MLETR as a fundamental legal framework that enables digital trade documents such as electronic bills of lading, electronic promissory notes, and other transferable trade records to be legally equivalent to paper-based versions. By aligning with MLETR, the EU and Singapore enhance legal certainty, reduce transaction costs, and improve efficiency in digital trade.
Key Benefits of MLETR Implementation:
- Legal Recognition of Electronic Trade Documents: Businesses can now digitally issue, store, and transfer trade documents with the same legal standing as paper-based records.
- Efficiency & Cost Reduction: Eliminates paper-based processing, leading to faster transactions and lower administrative costs.
- Harmonized Trade Framework: Facilitates interoperability between legal systems, ensuring seamless digital trade between the EU and Singapore.
- Boost for SMEs & Startups: Enables micro, small and medium-sized enterprises (MSMEs) to access trade finance more efficiently through digital means.
EU-Singapore’s Leadership in Digital Trade
By incorporating MLETR into their Digital Trade Agreement, the EU and Singapore set a global precedent for digitalising trade processes, aligning with the G7 and WTO initiatives to promote paperless trade. This move is expected to accelerate digital trade adoption worldwide and strengthen economic ties between the two partners.
Next Steps
With this agreement, the EU and Singapore will collaborate on MLETR implementation through pilot programs, industry consultations, and regulatory alignment efforts to ensure a smooth transition to fully digital trade documentation.
The MLETR-based framework within the EU-Singapore Digital Trade Agreement marks a significant milestone in trade digitalisation, reinforcing the commitment to a secure, efficient, and legally sound digital trade ecosystem.
Summary by DigitalTrade4.EU