When we think of ‘trade’, images of ships, containers and customs checks might spring to mind. But in today’s economy, a big chunk of trade doesn’t even pass through a physical border because it happens online.

That’s the focus of Global Trade Governance in the Digital Era, a chapter by Mira Burri in ASEAN Digital Community 2045: Global Insights (ERIA, 2025).

Burri explored how the rules of global trade are being rewritten for a world where data is as valuable as oil, and where deals between countries increasingly involve flows of information, not just goods.

In 1998, the World Trade Organization (WTO) launched its Work Programme on Electronic Commerce. Back then, the Internet was still new and digital trade mostly meant buying and selling goods or services online.

Fast forward to today, and “digital trade” covers everything from cross-border streaming to cloud computing and artificial intelligence (AI), with data at the heart of it all.

Modern trade deals now contend with questions like: How should personal data be protected across borders? Should countries be allowed to force companies to store data locally? How do you regulate AI systems that work globally?

WHY DATA IS THE NEW TRADE COMMODITY

Data flows underpin everything from online banking to e-commerce delivery tracking. Ensuring that data can move freely between countries has become essential for innovation, competitiveness and economic growth.

But this clashes with concerns over privacy, national security and digital sovereignty.

Different countries have different answers. The United States (US) tends to promote open data flows with minimal restrictions.

The European Union (EU), on the other hand, allows them only if strict privacy standards, like those in its General Data Protection Regulation (GDPR), are met. Others, like China, lean towards more state control over data.

Burri called the latest wave of trade regulation “Trade Law 4.0”: rules for a data-driven economy that go far beyond lowering tariffs.

These new agreements cover cross-border data flows such as deciding if and when data can move between countries; data localisation bans, preventing countries from forcing companies to store data domestically; source code and algorithms that stop governments from demanding access to a company’s tech secrets; cybersecurity cooperation that jointly tackle online threats; and open government data that makes public data available in usable formats.

THE CPTPP AND BEYOND

One landmark deal is the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), which includes countries like Brunei Darussalam, Japan, Australia and Singapore.

Its e-commerce chapter sets rules for free data flows, bans on localisation and recognition of electronic contracts and signatures.

Since then, newer agreements like the US-Mexico-Canada Agreement (USMCA) and the US-Japan Digital Trade Agreement have gone even further, adding protections for algorithms and expanding open data commitments.

Enter the Digital Economy Agreements (DEAs), which are essentially pacts between countries specifically focused on the digital realm.

Examples include the Digital Economy Partnership Agreement (DEPA) between Singapore, New Zealand, and Chile, and the Singapore-Australia DEA.

DEAs combine trade facilitation (like electronic invoicing and faster customs clearance) with cooperation on emerging tech, such as AI governance and fintech.

They’re more flexible than traditional trade deals, allowing countries to collaborate on fast-changing issues without overcommitting in areas they’re not ready for.

However, not every region takes the same path. The EU’s deals emphasise data protection as a fundamental right, allowing restrictions on data flows to protect privacy, public morals, health, or the environment.

In Asia, agreements like the Regional Comprehensive Economic Partnership (RCEP) and the ASEAN E-Commerce Agreement take a more cautious approach.

They encourage digital trade but leave plenty of room for countries to set their own pace, which is an acknowledgement of the huge differences in digital readiness across the region.

The WTO’s Joint Statement Initiative (JSI) on electronic commerce aims to bring digital trade rules into the multilateral system. It’s made progress on less controversial issues like e-signatures, consumer protection and paperless trading.

But talks have stalled on the toughest topics, especially cross-border data flows and localisation. In a surprise move in 2023, the US stepped back from pushing these provisions, citing the need for “policy space” to rethink its approach.

The upside? By removing contentious issues, a deal might be reached faster, with more countries willing to sign on.

The downside? It risks leaving the most important, and most divisive, digital trade questions unresolved.

WHY THIS MATTERS FOR ASEAN AND BRUNEI

For ASEAN, these global developments offer both opportunities and lessons. Deals like the CPTPP and DEAs show what’s possible in terms of digital trade facilitation, while RCEP’s more flexible model reflects the diversity of ASEAN economies.

Brunei, already part of CPTPP and RCEP, stands to benefit from greater integration into global digital value chains. Its challenge will be balancing openness to data flows with safeguards for privacy and national security, while also helping smaller local businesses adopt digital tools to compete regionally.

Burri concluded that while innovation in trade agreements is encouraging, big divides remain. Cross-border data rules are still politically sensitive, and countries vary widely in their ability to implement advanced digital trade commitments.

For now, free trade agreements and DEAs are the “laboratories” where new rules are tested. Over time, the most successful models might feed into a global framework, but only if trust, capacity building and flexibility are built into the system.

The bottom line is that the shift from trading goods to trading data is rewriting the rules of the global economy. For ASEAN, and Brunei in particular, staying engaged in these discussions isn’t optional. It’s the key to ensuring that the region’s digital future is both competitive and secure.

Source: Borneo Bulletin

• USTR Makes Findings and Proposes Action in 60 Section 301 Investigations Relating to Failures to Take Action on Trade in Forced Labor Goods
• [VCCI] The US officially initiates a Section 301 Investigation into Vietnam on Intellectual property
• General Secretary and President To Lam's working visit to three ASEAN countries: Demonstrating the stature of proactive and constructive diplomacy.
• Viet Nam accelerates innovation drive as skilled workforce becomes key to science and technology growth
• The US is increasing controls on AI chip exports