Key Documents
The ASEAN Digital Economy Framework Agreement (DEFA) aims to accelerate ASEAN’s transformation into a leading digital economy, that fosters greater digital cooperation and paving the way for regional digital integration and inclusive growth and development. This study outlines elements that may inform the negotiation process ahead and served as basis for the launch of the negotiations without prejudice basis.
Statement on the Substantial Conclusion of DEFA Negotiations
The ASEAN Economic Community (AEC) Council gathered at the 26th AEC Council Meeting in Kuala Lumpur, Malaysia to announce the substantial conclusion of the ASEAN Digital Economy Framework Agreement (DEFA) Negotiations as one of the Priority Economic Deliverables (PEDs) under Malaysia’s ASEAN Chairmanship. DEFA is expected to be the world’s first most comprehensive regional agreement on the digital economy. Since the launch of negotiations in September 2023, the ASEAN DEFA Negotiating Committee has convened fourteen (14) rounds of constructive negotiations to make this possible through active contributions of all ASEAN Member States and under Thailand’s leadership.
Leaders Statement on the Development of the ASEAN DEFA
WE, the Association of Southeast Asian Nations (ASEAN), namely Brunei Darussalam, the Kingdom of Cambodia, the Republic of Indonesia, the Lao People’s Democratic Republic, Malaysia, the Republic of the Union of Myanmar, the Republic of the Philippines, the Republic of Singapore, the Kingdom of Thailand, and the Socialist Republic of Viet Nam, gathered on 5 September 2023 in Jakarta, on the occasion of the 43rd ASEAN Summit;
Framework for Negotiating DEFA
Digital transformation is a foundational strategy for economic growth and prosperity. As one of the fastest-growing internet markets in the world, there is enormous economic potential that ASEAN can reap from the digital economy. With these various opportunities, in 2021, the ASEAN Leaders issued the ASEAN Leaders’ Statement on Advancing Digital Transformation, which called for a strategic, holistic and coordinated approach for inclusive and accelerated digital transformation. This includes agreement to strengthen regional digital integration and transformation by commencing negotiations for the ASEAN Digital Economy Framework Agreement (DEFA), as committed in the Bandar Seri Begawan Roadmap (BSBR). The DEFA is expected to set the foundation for doubling the potential value of the ASEAN Digital Economy from USD 1 trillion to USD 2 trillion in 2030, as stated in the DEFA Study.
Workplan to Implement the ASEAN Agreement on E-Commerce
The completion of the ASEAN Agreement on Electronic Commerce (the “Agreement”) is a key step in the pursuit of a leading digital economy in the ASEAN region. The Agreement provides the framework for the implementation of measures that allow ASEAN Member States (AMS) to cooperate in advancing the development and use of e-commerce in the ASEAN region while considering various degrees of digital readiness across AMS. As a result, the Agreement strengthens the emergence of a cohesive, aligned, and inclusive environment that helps facilitate cross-border e-commerce transactions for goods and services.
The Governments of Brunei Darussalam, the Kingdom of Cambodia, the Republic of Indonesia, the Lao People’s Democratic Republic, Malaysia, the Republic of the Union of Myanmar, the Republic of the Philippines, the Republic of Singapore, the Kingdom of Thailand, and the Socialist Republic of Viet Nam, Member States of the Association of
Southeast Asian Nations (ASEAN) (hereinafter collectively referred to as “Member States” or individually as “Member
State”);
The COVID-19 pandemic has accelerated the pace of digitalisation in ASEAN. In 2020, 40 million people in the six largest economies in Southeast Asia adopted digitalisation for the first time compared to 100 million new users in the preceding five years – further cementing ASEAN’s position as the fastest growing Internet market in
the world. This increased pace in digitalisation in the region and increased appetite for meaningful access and use of digital technologies by ASEAN citizens must be matched with a strong commitment and necessary political vision to meet these expectations. Therefore, harnessing the ongoing digital transformation in the region is necessary to catalyse ASEAN’s digital economy integration agenda.
ASEAN Digital Integration Index Report 2.0.
Following the publication of ASEAN Digital Integration Index (ADII) Report in 2021, the ADII 2.0 Report provides an update on the status and progress of digital integration efforts in ASEAN. It provides an update of the ADII 1.0 database, examining the latest scores, tables, and charts for each of the ADII Indicators and Pillars at the ASEAN level (regional scores).
Work Plan on the Implementation of ASEAN Agreement on Electronic Commerce
The ASEAN Agreement on Electronic Commerce was signed in 2019 and shall enter into force in 2021. On 9 September 2021, the Work Plan on the Implementation of the ASEAN Agreement on Electronic Commerce 2021-2025 was endorsed by the 53rd ASEAN Economic Ministers’ (AEM) Meeting. Given the comprehensiveness of the Agreement that covers various cross-sectoral elements necessary for the development of e-commerce, the Work Plan provides a coherent and harmonized approach that guide AMS in implementing the Agreement, taking into account different level of development among ASEAN Member States. The ASEAN Coordinating Committee on Electronic Commerce (ACCEC) is entitled to coordinate with relevant sectoral bodies of ASEAN to deliver the work plan on a timely manner. The Work Plan is expected to bolster not only the region’s e-commerce sector, but also other ASEAN sectors leveraging digital technology. It cements the regulatory foundation to spur the transformation of ASEAN into a leading digital economy.
ASEAN Digital Integration Index Report 2021
Following the adoption of ASEAN Digital Integration Index (ADII) methodology in 2020, the ASEAN Coordinating Committee on Electronic Commerce (ACCEC) presents the first iteration of the ADII Report 2021. The report is expected to provide an evidence-based measures, so that ASEAN can assess its accomplishment in achieving its Digital Integration Framework using empiric data portrayed by the Report.
ASEAN Agreement on Electronic Commerce (2019)
ASEAN Agreement on Electronic Commerce (Agreement) was signed by ASEAN Ministers responsible for economy in 2019 as ASEAN response to the increasing role of e-commerce in driving economic growth and social development in the region. Aside of facilitating e-commerce transactions in ASEAN and deepening cooperation among Member States to develop and intensify the use of e-commerce, the Agreement was also intended to create an environment of trust and confidence in the use of e-commerce.
ASEAN Work Programme on Electronic Commerce 2017-2021
To maximize the benefit of e-commerce, ASEAN agreed to develop a work program specifically targeted to the e-commerce sector. The work program covers the work of different sectors that are essential in ensuring the e-commerce activities run in a conducive environment.
The ASEAN Work Programme on Electronic Commerce 2017-2021 focuses on the following important areas: ICT infrastructure, e legal and regulatory framework, trade facilitation education and technology competency, electronic payment and settlement, online consumer protection, cybersecurity, and logistic to facilitate e-commerce, among others.
ASEAN Digital Integration Framework Action Plan 2019-2025
In July 2018, ASEAN Coordinating Committee on Electronic Commerce (ACCEC) finalized the ASEAN DIGITAL INTEGRATION FRAMEWORK (DIF), which proposes 5 policy areas that can help ASEAN overcome the barriers to digital integration, namely (1) Digital connectivity and affordable access, (2) Financial ecosystem, (3) Commerce and trade (4) Workforce transformation, and (5) Business ecosystem. The digital integration in ASEAN is a key component in harnessing the digital economy to power and accelerate intra-regional trade and growth, projected to stimulate GDP uplift of US$1 trillion by 2025.
ASEAN DIF identifies six priority areas for the immediate term to address the critical barriers and accelerate existing ASEAN platforms and plans to realise digital integration. To advance the digital integration process in ASEAN, the identified priority areas in the DIF are translated into an Action Plan, comprising of key initiatives from different sectors related essential to support the digital transformation.
Guideline on Accountabilities and Responsibilities of E-Marketplace Providers (2019)
The Guideline on Accountabilities and Responsibilities of e-marketplaces is a non-binding document, intended to be used by e-commerce platform. It aims to create conducive environment for the growth of e-commerce platforms, unlock cross-border trade opportunities and foster the development of consumer confidence in ASEAN. This guideline serves as a minimum standard for e-commerce platform in performing their operations, so e-commerce platforms are welcomed to implement an advanced standard in doing their business.
