The ASEAN E-Commerce Agreement launches the process. Member State governments must continue to seize opportunities at national level and across the region to effectively realise the potential growth prospects available in the future. Businesses must be willing to respond with specific inclusion recommendations in order to create a successful e-commerce and digital trade policy for ASEAN. At a plenary session in Jakarta on Tuesday, the nine political parties endorsed the deal, which covers consumer protection, protection of e-commerce platforms, intellectual property rights, competition and cybersecurity, among others. The MANDATE of the ACCEC is to work with other ASEAN groups that are also important to the success of e-commerce and digital trade objectives. As stated in the agreement itself, this includes future work in areas such as data protection, intellectual property and customs and trade facilitation. During this session, we will share the experiences and priorities of ASEAN members in e-commerce, especially with a view to concluding the ASEAN Agreement on Electronic Commerce by the end of 2018. We will also exchange views on other regional initiatives and e-commerce readiness efforts. This agreement is considered crucial as Southeast Asia is the fastest growing internet market with around 330 million internet users. In addition, Southeast Asia has seen the rise of ASEAN-based e-commerce, such as Lazada in Singapore and Tokopedia in Indonesia. The agreement was signed by the 10 member countries at the ASEAN summit in Singapore on Monday. Commerce Minister Muhammad Lutfi told lawmakers at a hearing on Wednesday that the law would cover several aspects of e-commerce regulation, including consumer protection, protection of e-commerce platforms, intellectual property rights, competition and cybersecurity. A second obstacle to creating a meaningful agreement for digital trade was the lack of commitment to the business sector.

While it`s usually best to talk to businesses when negotiating business issues, in the rapidly changing digital and e-commerce space, it`s absolutely crucial that managers continually discuss ideas with the business world. Meanwhile, with the signing of an agreement on e-commerce, ASEAN has begun to make progress in another important area. The agreement was finalised in November 2018, but the text was finally published last week. The Google/Temasek report notes benefits that are already circulating in the region, even without coordinated policies. This includes $23 billion in e-commerce sales from 120 million shoppers, $30 billion in online travel services, and $8 billion in online transportation and grocery delivery from 35 million users who make more than 8 million trips a day. Keeping these innovative goods and services moving and paying for them will be crucial for ASEAN in the future. However, most of the agreement remains at the level of cooperation, especially on the key elements that are most important for businesses. These include commitments that will cover ICT infrastructure, legal and regulatory frameworks, electronic payments and processing, trade facilitation, intellectual property rights in the digital age, competition policy, cybersecurity, etc. Part of the challenge in drafting an agreement that could be important for businesses is the large differences in capacity between ASEAN member states. This is, of course, a constant challenge for ASEAN, but the distance between ASEAN countries is particularly evident in the digital space. Even the level of knowledge among policy-making officials can vary widely.

The minister said ASEAN`s internet economy is expected to reach $200 billion by 2025. While e-commerce growth is expected to reach $88 billion in the same year. However, as with many things in ASEAN, all is not lost. This agreement is the starting point for further discussions on e-commerce and digital commerce. The agreement will be monitored by the Chief Economic Officers (SEOM) and implemented by the ASEAN Electronic Commerce Coordination Committee (ACCEC). THE ACCEC will coordinate with other ASEAN bodies. Most of the approximately 2500 MSMEs involved in our Asia-Pacific Trade Coalition for MSMEs (AMTC) are active in e-commerce and digital commerce. Although not all are located in ASEAN, many are involved in or support trade flows throughout the region. Most reported difficulties related to inconsistent trade rules and regulations within ASEAN. The agreement contains a clause to review the agreement within three years. Meanwhile, Indonesian Trade Minister Enggartiasto Lukita told Anadolu Agency that the existence of this agreement is an opportunity for Indonesian products to enter the Southeast Asian market through e-commerce channels. The agreement on e-commerce has three main objectives, the first of which is to facilitate cross-border e-commerce transactions between ASEAN countries.

Singapore`s Minister of Trade and Industry Chan Chun Sing said the agreement was reached after nine rounds of negotiations that began in June 2017. “It also aims to create an environment of trust in the use of e-commerce,” Chan said. Therefore, there is a need for ASEAN to address e-commerce and digital trade in a regional manner. The Association of Southeast Asian Nations (ASEAN) was the first region in the world to conclude an agreement on electronic commerce. Since nothing happens in ASEAN until it is integrated into the right institutional framework, these are important results. The ACCEC is now formally responsible for managing the objectives of ASEAN`s e-commerce and digital trade policy. SEOM is to report regularly to Ministers, and then to Heads of State and Government, on progress made. “This agreement will also promote paperless trade between businessmen and governments, which can enable faster and more efficient transactions in ASEAN,” he added. E-commerce is a powerful catalyst for businesses, especially MSMEs, to access international markets.

ASEAN companies have recognized this and have used e-commerce to grow and expand their business. For ASEAN, the benefits of e-commerce go beyond creating business and business opportunities. It also contributes to the social cohesion and overall economic development of the region, which are important elements for our regional integration. The agreement reached in November contains useful provisions to move things forward. It urges Member States to use paperless trading systems and the use of information (other than financial services) by electronic means, including digital signatures. It encourages members to be transparent about consumer protection measures and urges the protection of personal data on the Internet. “This regulation is a legal umbrella for the e-commerce sector among ASEAN governments to increase the commercial value and competitiveness of local enterprises and expand cooperation in the use of e-commerce in ASEAN,” Communications Minister Johnny G. Plate said on Tuesday. In recognition of this, the ASEAN Work Programme on E-Commerce was presented in November 2017. .