New Delhi, August 18: The ASEAN Digital Economy Framework Agreement (DEFA) presents a model for India to achieve extensive and deep 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 compatible systems, rather than necessitating uniform domestic laws across different countries.
The report highlights that while DEFA establishes a regional framework for digital trade and services, its inclusion in the ASEAN-India Trade in Goods Agreement (AITIGA) could be detrimental. This could lead to unresolved issues such as data governance, privacy, competition, and online regulation being brought into the negotiations as the focus shifts towards goods-centric discussions.
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 security, cybersecurity, and emerging technologies.
Meanwhile, AITIGA remains focused on trade in goods. Its review addresses issues such as 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 review of AITIGA by 2026. Concerns regarding New Delhi’s trade deficit in goods and ASEAN’s demand for a more streamlined and trade-friendly agreement remain significant points of discussion.
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 to enforce provisions will only become clear after its signing.
Instead of creating a uniform legal framework, ASEAN has opted for “managed interoperability,” allowing countries with varying regulatory capabilities to collaborate through flexibility, phased implementation, and capacity building.
DEFA builds on ASEAN’s previous digital initiatives, including the ASEAN e-commerce agreement of 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 concerning interoperable payment systems, electronic documents, digital identity, and artificial intelligence. DEFA advances this existing digital framework rather than creating it from scratch.
Bhupendra Singh Chundawat is a seasoned technology journalist with over 22 years of experience in the media industry. He specializes in covering the global technology landscape, with a deep focus on manufacturing trends and the geopolitical impact on tech companies. Currently serving as the Editor at Udaipur Kiran, his insights are shaped by decades of hands-on reporting and editorial leadership in the fast-evolving world of technology.