New Delhi, August 18: The ASEAN Digital Economy Framework Agreement (DEFA) presents a model for India to enhance its digital engagement with Southeast Asia, according to a new report.
As reported by ‘The Jakarta Post’, this agreement paves the way for “managed interoperability” through shared business outcomes and aligned systems, rather than requiring uniform domestic laws across different countries.
The report indicates that DEFA establishes a regional framework for digital trade and services. However, incorporating it into the ASEAN-India Trade in Goods Agreement (AITIGA) could pose challenges. This could expand the scope of goods-centric negotiations to include unresolved issues such as data governance, privacy, competition, and online regulation.
Finalized in May in Manila, DEFA encompasses nine areas, including digital trade, cross-border e-commerce, payments and e-invoicing, digital identity, cross-border data flow and protection, online safety, cybersecurity, and emerging technologies.
Meanwhile, AITIGA remains focused on trade in goods. Its review addresses issues related to market access, rules of origin, customs and trade facilitation, standards, sanitary and phytosanitary measures, trade remedies, and legal and institutional provisions.
ASEAN and India aim to complete the AITIGA review by 2026. Key issues in the discussions include New Delhi’s concerns over trade deficits and ASEAN’s demand for simpler, trade-friendly agreements.
The report notes that the text of DEFA, developed through negotiations, has not yet been made public. Therefore, the actual depth of the agreement, exceptions, and the capacity for enforcement will only become clear after signing.
According to the report, instead of creating a uniform legal framework, ASEAN has adopted a path of “managed interoperability.” This allows countries with varying regulatory capacities to collaborate through flexibility, phased implementation, and capacity building.
DEFA builds on ASEAN’s previous digital initiatives, including the ASEAN e-commerce agreement from 2019, which came into effect in 2021. This agreement committed member countries to facilitate electronic transactions while acknowledging differences in domestic laws and regulatory developments.
The report states that ASEAN has since made progress in voluntary guidelines related to interoperable payment systems, electronic documents, digital identity, and artificial intelligence. DEFA advances this existing digital framework rather than starting anew.
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