ASEAN launches world’s first regionwide Digital Economy Framework Agreement

This article was originally found on ASEAN.

The meeting also endorsed the Framework for Negotiating DEFA, which will guide the negotiations of the DEFA by exercising the objectives and principles of negotiations, examining the areas to be negotiated and sets out the negotiation process and timeline.

The launch of ASEAN DEFA negotiations comes after the endorsement of the ASEAN DEFA study at the 55th ASEAN Economic Ministers (AEM) meeting in Semarang, Indonesia last 19 August. The study identified nine core elements, including digital trade, cross-border e-commerce, cybersecurity, digital ID, digital payments, cross-border data flows, and emerging topics that are expected to be covered in the negotiations of DEFA.

Indonesia's Coordinating Minister for Economic Affairs Airlangga Hartarto said that the region will work towards the completion of the ASEAN DEFA negotiations in 2025 and is committed to create a sustainable and inclusive digital ecosystem. "It is an honor to experience this milestone with all of you and I look forward to working closely with each of ASEAN Member States," he said.

Dr Kao Kim Hourn, Secretary-General of ASEAN, in his opening remarks, underscored that the launch of the DEFA negotiation stands out as one of the most notable accomplishments under Indonesia’s chairmanship. Dr Kao also emphasised that a robust, advanced and forward-looking DEFA is expected to add up to USD2 trillion to the regional digital economy by 2030, reinforcing the region’s dynamism and competitiveness in the global economy.

The ASEAN DEFA Negotiating Committee (NC) is chaired by Thailand and includes Lead Negotiators from the 10 ASEAN Member States. The ASEAN DEFA NC has the overall responsibility for negotiating the DEFA provisions based on the principles, process, and timeline identified in the Framework for Negotiating ASEAN DEFA. The first meeting of the ASEAN DEFA NC is scheduled to take place by the end of 2023. Subsequent meetings will be conducted in 2024 and 2025, with the view to conclude the ASEAN DEFA negotiations by 2025.