ASEAN concludes negotiations for landmark digital economy pact
At A Glance
- ASEAN economic officials concluded negotiations for the bloc's first region-wide digital economy agreement.
- The ASEAN Digital Economy Framework Agreement (DEFA) could help grow the region's digital economy to $2 trillion by 2030.
- The agreement covers AI, e-commerce, cybersecurity, digital payments, and data governance.
Economic officials of the Association of Southeast Asian Nations (ASEAN) have concluded negotiations for the bloc’s first region-wide digital economy agreement, marking what regional leaders described as a major milestone toward a more integrated and competitive digital economy.
In a statement issued after the Second Meeting of the 57th ASEAN Senior Economic Officials Meeting in Manila, the ASEAN Senior Economic Officials Meeting (SEOM) announced the successful completion of negotiations for the ASEAN Digital Economy Framework Agreement (DEFA).
The agreement is considered ASEAN’s first comprehensive digital economy pact covering the entire region.
“This marks the successful conclusion of the negotiations on ASEAN’s first region-wide digital economy agreement and a major milestone in advancing the ASEAN Leaders’ vision of a digitally integrated, secure, interoperable, competitive, and inclusive regional economy,” the statement released on May 30 read.
$2-trillion digital economy
The ASEAN said the DEFA is expected to play a transformative role in expanding the region’s digital economy, which could potentially double in value to $2 trillion by 2030 once fully implemented.
Under current growth trends, ASEAN’s digital economy is projected to reach around $1 trillion by the end of the decade.
The agreement was also described as ASEAN’s response to the rapidly evolving global economic landscape and part of the bloc’s efforts to build an “open, rules-based, and seamlessly connected digital economy.”
AI, cybersecurity, digital trade
The DEFA establishes a regional framework covering various aspects of the digital economy, including digital trade, cross-border e-commerce, data governance and privacy, digital identity systems, electronic payments, online safety, cybersecurity cooperation, and competition policy.
It also includes provisions on emerging technologies such as artificial intelligence and digital talent mobility.
The ASEAN said the agreement builds on existing regional initiatives, including the ASEAN Single Window, cross-border digital payment connectivity, online consumer protection systems, and the ASEAN Unique Business Identification Number.
MSMEs, inclusive growth
Regional officials emphasized that the DEFA is not merely a trade agreement but also a development and integration tool meant to ensure that the benefits of digital transformation are shared more widely across ASEAN member-states.
The agreement is expected to strengthen the participation of micro, small, and medium enterprises (MSMEs), narrow development gaps, and support economies at different stages of digital development.
“It will help create more inclusive, resilient, and sustainable growth opportunities throughout the region,” the statement read.
The ASEAN said the DEFA would also help strengthen trust in online transactions and reduce barriers to cross-border digital trade.
Signing in November
The agreement is expected to be formally signed in November 2026 alongside the 28th ASEAN Economic Community Council Meeting and the 49th ASEAN Summit.
ASEAN economic officials said the DEFA would play a central role in implementing “ASEAN 2045: Our Shared Future” and the ASEAN Economic Community Strategic Plan 2026-2030.
The negotiations concluded weeks after the ASEAN economic ministers' meeting in Cebu earlier this month, which directed negotiators to resolve all remaining issues surrounding the agreement.