The European Union (EU) has long been considered to have the world’s strongest data protection regime, notably since the General Data Protection Regulation (GDPR) entered into application in May 2018, guaranteeing the protection of personal data of Europeans both when their data is processed in Europe and transferred abroad. However, as previously noted by the DTA, two recently signed trade agreements — with Japan and Singapore — threaten the privacy protections established by the GDPR, and establish a precedent that could weaken the EU’s commitment to data protection and privacy.
To counter this, a group of Members of the European Parliament (MEPs) has come together to request an advisory opinion from the European Court of Justice (CJEU) on the effect of these trade agreements on the EU’s ability to protect the crucial digital rights of its residents. The issue will be put to vote in an upcoming plenary session of the European Parliament on November 13, 2025.
What’s the story?
The EU and Singapore concluded negotiations on a Digital Trade Agreement on July 25, 2025. The agreement still needs to be formally signed and ratified, which requires consent of the European Parliament.
The EUSDTA ostensibly seeks to enhance consumer trust in the digital marketplace by improving access to information, safety, and redress mechanisms, while providing businesses with predictability and legal certainty. However, certain provisions risk weakening fundamental rights to data protection and privacy for people in the EU, and may constrain the EU’s ability to enforce its digital legislation, thereby creating potential risks for people’s rights in the digital ecosystem. In addition, no impact assessment has been carried out by the European Commission on how digital trade agreements, including the EUSDTA, might affect existing regulations and the EU legal order. DTA member European Digital Rights (EDRi) has produced a detailed assessment of how the EUSDTA may impact EU digital regulations.
A number of civil society organizations and digital experts have analyzed the EU’s recent digital trade agreements and concluded that the safeguards they contain are insufficient to adequately protect digital rights guaranteed in the EU. Provisions on data flows and source code, in particular, create serious risks for fundamental rights and for the EU’s ability to regulate in the public interest. DTA research has also highlighted how prior trade agreements by the EU, with jurisdictions such as Japan, may lessen privacy protections for EU data. The European Data Protection Supervisor (EDPS) has also raised similar concerns in its Opinion 4/2025, warning that the agreement’s data-protection clause omits key safeguards and could create legal uncertainty.
The EUSDTA, being the first stand-alone digital trade agreement entered into by the EU, may also become a template for future agreements. Therefore, it is imperative for the agreement to be appropriately designed so as to prevent any weakening of critical rights guaranteed to EU residents.
What’s happening now?
Per EU procedures, the European Parliament may seek an opinion from the European Court of Justice on the compatibility of an international agreement with the foundational treaties of the EU. This would have enormous persuasive value in forcing the European Commission back to the negotiating table with Singapore, while also laying down a marker for future digital trade agreements. If adopted, this would be the first time the Parliament requests a Court opinion on a digital trade agreement, setting a precedent for future scrutiny of similar treaties.
Accordingly, 78 MEPs have supported a resolution to request an opinion from the Court of Justice of the EU under Article 218 (11) Treaty on the Functioning of the EU.
At this time, when the EU’s digital regulations and guarantees of digital rights are being mercilessly attacked in trade negotiations, voluntarily agreeing to trade rules that limit the ability of the EU to regulate the digital ecosystem could be disastrous for digital rights in the EU and beyond. Now, more than ever, the EU must demonstrate its commitment to protect the fundamental rights and interests of all its residents. The upcoming plenary vote on November 13, 2025, will therefore be a defining moment: it will show whether the European Parliament upholds its role as guardian of fundamental rights in an increasingly contested digital trade landscape.
