Study on the Potential Future Cooperation between ASEAN and the EU on Digital Trade

The Project at A Glance

International Economics, through its CEO, conducted a study on potential future cooperation between ASEAN and the EU in digital trade to support digital transformation in the region. This study aimed to contribute to the work of the ASEAN-EU Joint Working Group (JWG) on Trade and Investment, aligning with the long-term goal of establishing a region-to-region FTA.

The project was implemented under the E-READI (Enhanced Regional EU-ASEAN Dialogue Instrument) programme by GIZ, which fosters policy dialogues between the EU and ASEAN across all three ASEAN Community pillars, with financial support from the EU.

What We Found

Digital trade is expanding rapidly and has been identified as one of the three priority areas for sectoral trade cooperation between ASEAN and EU Member States. Establishing digital trade rules is crucial for fostering trust and confidence in data transfers. Over the past decade, e-commerce chapters have increasingly been integrated into FTAs, alongside the emergence of digital economy and digital trade provisions, either within FTAs or as standalone agreements.

Against this backdrop, International Economics conducted a study to enhance understanding of digital trade provisions within EU and ASEAN FTAs. The study assessed digital trade commitments in past agreements across ASEAN, including bilateral FTAs involving ASEAN Member States, as well as the EU’s commitments in its FTAs. By analysing key policy areas of mutual interest, the study aimed to strengthen ASEAN-EU cooperation in digital trade and provide insights from the EU experience to support negotiations of the ASEAN Digital Economy Framework Agreement (DEFA).

Our Strategy and Impact

International Economics analysed the depth and scope of digital trade commitments made at the multilateral, plurilateral, bilateral, and regional levels. This assessment covered key frameworks such as the ASEAN Digital Economy Framework Agreement (DEFA), the WTO’s e-commerce Joint Statement Initiative (eJSI), and relevant EU-ASEAN FTAs. The study focused on critical digital trade areas, including electronic authentication, online consumer protection, personal data protection, customs duties on electronic transmissions, open data provisions, cross-border data flows, digital payments and e-invoicing, and paperless trade.

The findings provide actionable recommendations to strengthen EU-ASEAN collaboration in digital trade. These recommendations may lead to concrete follow-up actions, such as targeted capacity-building programs, or formal commitments, including Memoranda of Understanding (MOUs).

Our Core Solutions

E-Commerce and digital trade are a vital way for businesses to transact with customers, creating immense opportunities, facilitate innovation, enhance competitiveness, and improve access in local and global markets.

International Economics provides advice and solutions on some of the latest emerging trends in e-commerce and digital trade such as paperless trading, e-payments, online consumer protection and data protection. We assist governments and businesses worldwide in creating an enabling environment for e-commerce and digital trade, to maximise economic growth and development.