Digital Economy Framework Agreement - ASEAN's template for the world?

There is a constant churning and desire to make international trade rules in the field of ecommerce and digital trade. While the Joint Initiative on Ecommerce by some WTO members is touted as a future blueprint, regional initiatives are finding space. This recent announcement by ASEAN on a Digital Economy Framework Agreement seems to be moving in the direction of regional digital trade rules.

The framework for negotiating such an agreement spells out the wide scope of the agreement:

On without prejudice basis, ASEAN DEFA negotiations will consider including but not be limited to the following elements: 

1. Digital Trade aims to facilitate cross-border trade by creating a seamless trade experience with electronic documents and interoperable processes. 

2. Cross-border E-Commerce aims to create a more efficient and fairer environment for cross-border e-commerce, including digital goods and services. 

3. Payments and E-Invoicing aims to promote digital payments and electronic invoicing by fostering technical interoperability, encourage innovation and competition, and developing relevant regulation. 

4. Digital ID and Authentication aims to develop a mutual recognizable and interoperable digital identity and electronic authentication framework within the region. 

5. Online Safety and Cybersecurity aim to improve cooperation in cybersecurity and create an open and secure online environment, with comprehensive protection to parties in a digital transaction. 

6. Cross-border Data Flows and Data Protection aims to facilitate cross-border data flow and establish frameworks to protect data privacy. 

7. Competition Policy aims to create a fair/non-discriminatory, transparent competitive environment with consistent guidelines on enforcement and better choice for consumers 

8. Cooperation on Emerging Topics aims to establish mechanisms for regulatory cooperation for relevant standards and regulations to keep up with technological innovations in emerging topics such as AI. 

9. Talent Mobility and Cooperation aims to facilitate digital talent mobility between countries and close collaboration on talent building.

 Will it lead to a fructification of regional rules in the ASEAN region to be replicated in their FTAs later and perhaps at the WTO? Will it cover issues of data localisation and free exchange of data? Will it be able to address the digital divide amongst ASEAN members? Will there be enforceable rules? Will there be dispute settlement provisions? Will it be ASEAN's template for the world on multilateral rules for the digital economy or a soft law approach to greater digital integration?

Interesting area to keep a watch on!