Southeast Asian nations sign digital trade deal to ease payments and cut paperwork

Southeast Asian nations signed an agreement on Saturday aimed at making it easier for businesses to trade online, make payments and transfer data across borders.The Digital Economy Framework Agreement was signed by ministers in Manila. It is the Association of Southeast Asian Nations’ (ASEAN) first stand-alone, legally binding agreement on the digital economy.It is due to take effect in May 2027, 180 days after signing, and replace the bloc’s 2019 agreement on electronic commerce, according to Singapore’s trade ministry.Philippine President Ferdinand Marcos Jr. formally handed the signed agreement to ASEAN Secretary-General Kao Kim Hourn at the opening of the bloc’s summit on Sunday.The pact promotes wider acceptance of electronic invoices, shipping documents and signatures to reduce paperwork. It also aims to make payment systems in different countries work together, helping businesses pay suppliers and receive money from customers abroad.It sets rules for transferring commercial and financial data across borders, limiting requirements for companies to store that information locally, Singapore’s trade ministry said.Singapore’s Deputy Prime Minister Gan Kim Yong said exceptions would remain to address concerns over privacy, business confidentiality and national security. Countries would also be able to move at different speeds as they develop their digital systems, he told reporters after the signing.Putting the agreement into practiceThe Asian Development Bank announced on Saturday an initiative aimed at raising up…