Policies supporting digital trade have been developing for decades, including the WTO’s 1998 work programme on e-commerce. This reflects the striking expansion of digital trade, which today covers not only online shopping, but also international transactions that are digitally ordered and/or digitally delivered, ranging from digital payments to cloud services, software and professional services. WTO data show that global exports of digitally delivered services reached US$3.82 trillion in 2022 — 54% of total global services exports — and grew at an average of 8.1% per year between 2005 and 2022.
From an Asia–Europe perspective, this growth is creating both opportunity and urgency. Asia’s momentum is visible both regionally and globally. It is currently the world’s digital engine, with its e-commerce market projected to reach US$28.9 trillion by 2026. ASEAN’s Digital Economy Framework Agreement, a priority under the Philippines ASEAN Chairmanship, is expected to help unlock a digital economy of up to US$2 trillion by 2030. East Asia is central to the wider AI-driven trade landscape, with major players (China, Japan and Korea) in the high-tech supply chains underpinning digital and AI-related industries. In South Asia, India’s digitally delivered services exports are estimated at US$269 billion in 2024. While Asia leads in growth, Europe leads in governance, with stronger emphasis on privacy, consumer protection and platform accountability, reflected in major regulations such as the EU AI Act and the Digital Markets Act (DMA). This approach seeks to ensure that digital trade expands without undermining consumer rights or safety.
For ASEM partners, this creates a clear area for cooperation – shaping digital trade rules that are practical, trusted and inclusive across both regions and globally. Digital trade is a key item on the agenda of the 14th WTO Ministerial Conference to be held in March 2026. Bilaterally, an example of synergy is the EU-Singapore Digital Trade Agreement (DTA), which entered into force in February 2026. As the EU’s first standalone bilateral digital pact, it sets an international standard prohibiting customs duties on electronic transmissions and banning unjustified data localisation, fostering a predictable and trusted environment for over €131 billion in bilateral trade. MSMEs make up most businesses in ASEAN and the EU, and many will benefit from interoperability, paperless trade and predictable digital rules.
Sources:
Gautam Kumra, 14 January 2026, ‘The great trade realignment: Asia rising’ McKinsey & Company
WTO, 2023, ‘Handbook on Measuring Digital Trade’, WTO
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