Trump’s digital trade strategy protects U.S. tech dominance through tariff-free agreements with Asian nations while raising duties on physical goods.
Singapore isn’t backing down on open trade. The city-state wants Southeast Asian countries and Europe to team up on a digital commerce partnership, according to a senior official.
Gan Kim Yong, who’s both Deputy Prime Minister and trade minister, laid out his ideas Wednesday at the Singapore Fintech Festival. Chatting with DBS CEO Tan Su Shan, he talked about bringing regions closer together economically.
“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, as mentioned in a CNBC report.
The two blocs don’t have to become one to make it work, he pointed out. “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.”
Still, Gan was realistic about timelines. Getting both sides to agree on basic rules for digital business cooperation will take time, he noted.
Gan’s eyeing other partnerships too. He wants ASEAN working with the Gulf Cooperation Council and linking up with the CPTPP — that’s the 11-country Comprehensive and Progressive Agreement for Trans-Pacific Partnership. It formed after U.S. President Donald Trump pulled America out of the Trans-Pacific Partnership during his first term.
“So I think there are a lot of opportunities still, despite the headwinds and the uncertainties we are seeing,” Gan said.
Gan also brought up the World Trade Organisation, saying it needs an update. Singapore wants to work with partners on modernizing how the organization runs.
“WTO is still [an] important foundation for this rules-based trading system,” he explained. But the current setup isn’t cutting it anymore. “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,” Gan added.
With global trade partners scrambling to cut new deals as the economic landscape shifts, Singapore’s positioning itself as the go-between for major trading blocs.
New deals with Malaysia and Cambodia, plus an early-stage agreement with Thailand, contain promises that these countries will not tax digital services or treat American online companies unfairly. This covers businesses providing e-commerce, social media, streaming, cloud storage, and similar internet services. These activities qualify as digital trade when transactions happen across borders.
Trump is using tariffs to fix imbalances in merchandise trade while simultaneously pushing to keep the global internet free from import duties and extra charges. His goal is to maintain America’s position as the top exporter of online services.
This approach differs from former President Joe Biden’s administration, which showed more understanding toward European worries about unrestricted market access for major American technology companies like Alphabet Inc.’s Google, Meta Platforms Inc., and Amazon.com Inc.
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