ECONOMIC officials have concluded negotiations for the Asean Digital Economy Framework Agreement (DEFA) in a key step toward digital integration across the region.
All outstanding negotiation issues were said to have been “successfully resolved” during a May 27 to 29 meeting in Manila by senior Association of Southeast Asian Nations (Asean) officials.
“This marks the successful conclusion of the negotiations on Asean’s first regionwide digital economy agreement and a major milestone in advancing the ... vision of a digitally integrated, secure, interoperable, competitive, and inclusive regional economy,” conference chairman Marie Sherylyn Aquia said in a statement on Saturday.
Aquia, director of the Trade department’s Bureau of International Trade Relations, is chair of this year’s Senior Economic Officials Meeting.
The outcome was said to have followed an Asean Economic Community (AEC) Council directive last month where the bloc’s senior economic officials were directed to resolve negotiating issues.
The DEFA, the statement said, is “Asean’s response to a rapidly evolving global economic landscape.”
“More than a digital trade agreement, the Asean DEFA seeks to make it easier, safer, and more seamless for business and consumers to participate in the digital economy across Asean,” Aquia said.
The agreement is expected to create a more seamless and enabling environment for businesses of all sizes, with the bloc having committed to deepen regional economic integration, strengthen competitiveness and unlock opportunities for innovation, investment and sustainable growth.
The pact also aims to narrow development gaps and strengthen participation of micro, small and medium enterprises.
“In doing so, it will help create more inclusive, resilient, and sustainable growth opportunities throughout the region” Aquia said.
The agreement will cover areas including digital trade, cross-border e-commerce, data governance and privacy, digital identity, electronic payments, online safety and cybersecurity cooperation, competition policy, emerging technologies such as artificial intelligence, and digital talent mobility.
DEFA provisions will build on ongoing digital integration efforts including the Asean Single Window, digital payments connectivity, cross-border data sharing, online consumer protection and the Asean Unique Business Identification Number.
The Asean digital economy is projected to reach $1 trillion by 2030 based on current growth trends. The deal could potentially double this to $2 trillion.
The DEFA is expected to be signed in November alongside the 28th AEC Council Meeting and the 49th Asean Summit. The Philippines is the host of this year’s summit under Asean’s rotating chairmanship.
CHYNNA GRACE ONG