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ASEAN concluded negotiations on the Digital Economy Framework Agreement (DEFA), the world's first region-wide digital trade pact, expected to be signed at the ASEAN Summit in Manila this November. The agreement aims to harmonize rules on data, digital payments, e-commerce, consumer protection, and AI across 11 member states to boost cross-border commerce and support small businesses. If implemented, DEFA could help ASEAN's digital economy grow from $300 billion in 2025 to $1 trillion by 2030, or $2 trillion with swift adoption. The pact addresses regulatory fragmentation that hinders SMEs from expanding beyond domestic markets. Success would position ASEAN as a model for regional digital integration amid global trade tensions.
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