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APEC Project Database

Project Title

In-depth Study on Digital Trade Provisions of FTAs/RTAs

Project Year

2025

Project Number

CTI_101_2025T

Project Session

Session 1

Project Type

Standard

Project Status

Project in Implementation

Project No.

CTI_101_2025T

Project Title

*
In-depth Study on Digital Trade Provisions of FTAs/RTAs

Project Status

Project in Implementation

Fund Account

*
TILF Special Account

Sub-fund

None

Project Year

2025

Project Session

*
Session 1

APEC Funding

161,028

Co-funding Amount

0

Total Project Value

161,028

Sponsoring Forum

*
Committee on Trade and Investment (CTI)

Topics

Electronic Commerce; Digital Economy; Trade Facilitation

Committee

Committee on Trade and Investment (CTI)

Other Fora Involved

Other Non-APEC Stakeholders Involved

 

Proposing Economy(ies)

Japan

Co-Sponsoring Economies

Australia; Canada; Chile; China; Hong Kong, China; Korea; New Zealand; Peru; Singapore; Chinese Taipei; Thailand

Expected Start Date

01/09/2025

Expected Completion Date

31/12/2026

Project Proponent Name 1

Keiko Futami

Job Title 1

Deputy Director

Organization 1

APEC Division, Economic Affairs Bureau, Ministry of Foreign Affairs of Japan

Telephone 1

+81-3 55018342

Email 1

Project Proponent Name 2

Not Applicable

Job Title 2

Not Applicable

Organization 2

Not Applicable

Telephone 2

Not Applicable

Email 2

Not Applicable

Declaration

Keiko Futami

Project Summary

The project aims to contribute to the advancement of FTAAP agenda, focusing on digital trade, with the meaningful input to the implementation of “the Ichma Statement”.


With the significant prospect for future growth of digital trade in the region, issues such as enhancing trust and security in the use of ICTs and the facilitation of cross- border data flow need to be further emphasized as set in AIDER (Internet and Digital Economy Roadmap).


This project will conduct in-depth study and analysis on the legal settings, implementations and business practices regarding digital trade provisions of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), Regional Comprehensive Economic Partnership (RCEP) ASEAN-Australia-New Zealand Free Trade Agreement (AANZFTA), The United States-Mexico-Canada Agreement

(USMCA) and the Pacific Alliance (PA)(the FTA/RTAs dealt with in the PSU study), as

well as other regional undertakings, including the Digital Economy Partnership

Agreement (DEPA) and U.S.-Japan Digital Trade Agreement. The project will identify benefits for business entities as well as hindrances caused by existing disparities among member economies, that affect the cost in the global digital business.


The findings of the study including best practices will be shared with APEC economies including private sector. It will help participants better equipped for negotiations for high quality trade agreements, which will contribute to the advancement of FTAAP agenda.


This project may make a good alignment to the Australian project on “APEC Digital Trade Provision Handbook” (CTI 01 2025S). The handbook deals with a wide range of provisions on Digital Trade including "Building trust" and "Data flows" with resommendations for higher commitments in FTAs while paying attantion to a balanced approach. This project will focus on Personal information protection and cross-border data flow. This project intends to support, in a way, the recommended commitment in the Handbook, based on the in-depth case study on legal setting and actual business pratices. The close collaboration with the Handbook project, as an unbrella initiative, this Digital Trade project will be able to elaborate the recomendations as well as provide additional ideas in order to make the Handbook to be useful and effective tool in this dimention.

Relevance

Region

Internet and digitalization have significantly advanced and become the essential infrastructure for the economic development in the APEC region. To realize the full economic potential, issues such as enhancing trust and security in the use of ICTs and the facilitation of cross-border data flow will be further emphasized. The study conducted through this project will focus on the legal settings and business practices regarding personal data/information protection and cross-border data transfer, paying the close attention to the balance with protection/flow of data for business and economies’ legitimate purposes respectively. Capacity building in this aspect will also be organized for policy makers and experts so that they will be better equiped when engaged in trade agreements negotiations in the area of digital trade. Such exercise will contributes to the advancement of the FTAAP agenda.


Eligibility and Fund Priorities

This project is qualified for TILF funding since it will contribute to enhancing cooperative programs and support trade and investment liberalization and facilitation, aiming at the project proposed by Peru as the CTI dialogue on “A way forward to implement the Ichma Statement on A New look at the FTAAP agenda”.


This project also meets many of the criteria set in the 15 areas in Part 1 of the Osaka Action Agenda; namely, comprehensiveness, comparability, WTO consistency, non- discrimination, transparency and so on.


Capacity Building

This project will provide a capacity building for policy makers and experts from all APEC economies, who are engaged in policy formulation or/and trade agreements negotiations in the area of digital trade, as well as business persons/entities who are involved in digital trade. One-day hybrid workshop is expected to be organized on the margins of SOM1 in 2026.

Objectives

The project will conduct in-depth study on the legal settings and implementation regarding digital trade provisions including “Personal Information Protection” and “Cross-Border Transfer of Information by Electronic Means” of the CPTPP, RCEP, AANZFTA, USMCA, PA (The FTA/RTAs dealt with in the PSU study), as well as other regional undertakings, including DEPA, and U.S.-Japan Digital Trade Agreement.


That includes careful comparative study by analyzing disparities and conformities in related laws/regulations, policies as well as actual business practices among member economies and therefore to identify benefits and hindrances as well as recommendations for further improvement and future considerations.


The project will organize a one-day workshop for APEC economies including private sector and participants will be better equipped with knowledge and good insight for digital trade agreement.

Alignment

APEC

1) This project will contribute to the implementation “Ichma Statement on a New look at FTAAP agenda”. The Statement has instructed CTI to work on a new workstream and explore innovative traded issues based on the PSU study on convergences and divergences of RTAs/FTAS of the region, and digital trade has been identified as one of the areas for its scope.


2) “Lima Roadmap to Promote the Transition to the Formal and Global Economies (2025-2040)”, highlights digitalization, including in administrative procedures and business operations, as the essential factor to promote the transition. The project will be a meaningful input for facilitating cross-border data transfer in this respect.


3) This project also aligns to MRT statement of 2024, stating the acceleration of AIDER in which “enhancing trust and security in the use of ICTs” and “facilitating the free flow of information and data for the development of the Internet and digital economy, while respecting applicable domestic laws and regulations” as the main factors to be furtherpursued.


Forum

1) CTI: The in-depth study and analysis conducted through the project will provide useful inputs to the initiative proposed by Peru as the CTI dialogue on “A way forward to implement the Ichma Statement on A New look at the FTAAP agenda”.


2) DESG: The project will also contribute to further the discussion in DESG based on AIDER, namely 7.Enhancing trust and security in the use of ICTs and 8.Faciliotaing the free flow of information and data for development of the Internet and Digital Economy, while respecting applicable domestic and regulations.

Beneficiaries and Outputs

Output


1) Study and Analysis (Study Report)

The study will conduct a cross-cutting analysis of digital trade disciplines set out in major agreements, particularly those relating to data security/protection and cross-border data transfers, to identify commonalities and divergences and to assess options for governments to ensure effective implementation and compliance. The agreements presently in scope are CPTPP, RCEP), AANZFTA, DEPA, and the U.S.-Japan Digital Trade Agreement, USMCA and PA.

The economies initially envisaged for this inquiry are [tenatively Japan, China, Vietnam, Singapore, Australia, and the United States] . It is intended to develop an evidence base through interviews and related outreach to firms operating in these economies Depending on the availability of interview participants and the final budget, the scope may be narrowed.

To identify best/good practices as well as hindrances to global digital

trade based on the above study.

To prepare a study report of minimum 80 pages excluding annexes. The duration of the study is expected for four months, and the report should be finalised prior to SOM2 of 2026 (for the planned workshop for capacity building).


2) 1-Day Workshop (In-Person and Virtual)

To hold one-full day Workshop (in-person and virtual) at SOM2 in 2026. It will be attended by policy makers and experts from all APEC economies, who are engaged in policy formulation or/and trade agreements negotiations in the area of digital trade, as well as businesspersons/entities who are involved in digital trade.


The workshop aims to provide a capacity building opportunitiy for participating officials. It will expand and upgrade their knowledge and perspective in digital trade provisions and policy that will redsuce cost and further facilitate the digital trade in the region by introducing the hindrances derived from the disparities in legal settings and good practices, as well as direct opinions from the business sector.


100 participants (60 from APEC economies, 20 from the business sector, 10 academics, 10 from international organizations)


  1. Introduction and Key note speeches
  2. Personal information protection
  3. three presentations (at least one presentation is from the business sector)
  4. discussion among panelisets
  5. Q&A (between participants and panelists)

(3) Cross-border data flow

  1. three presentations (at least one presentation is from the business sector)
  2. discussion among panelisets
  3. Q&A (between participants and panelists)

(4) Wrap-up (including a survey on the workshop though online)


Virtual participation (no limit on the number) is possible including Q&A and virtual participants can attend either the morning session (Personal information protection) or the afternoon one (cross-border data flow).


An online survey will be in placed during and at the end of the workshop.


3) Study Report (APEC Publication)

A study report of minimum 80 pages excluding annexes will be provided at the end of the project. The duration of the study is expected for five months, and the draft report should be finalized in prior to SOM2 of 2026 (for the planned workshop for capacitybuilding).


As the report’s content will be refined in light of the study’s findings, it is a bit premature to set out detailed contents at this stage. Broadly, however, we envisage a structure comprising: (i) Executive suummary, (ii)Research scopoe and Mathodology, (iii)a cross-cutting legal analysis of the relevant disciplines across the agreements; (iv) a survey and analysis of business realities and challenges in the target countries; and (v) best- practice and recommendations for both the private and public sectors, informed by the foregoing analyses, (vi) Project summary report.


Outcome

1) Increase in participants knowledge/understanding on trade agreements (provision) in the region in the area of Digital Trade. This outcome will be measured by pre-event survey and post-event survey.


2) Member economies will have better understanding in the importance of trust and credibility in Digital Trade. This outcome will be measured by pre-event survey and post-event survey.


Beneficiaries

Beneficiaries of the project will include APEC economy officials, especially officials to be engaged in trade negotiations for FTAs/RTAs in the area of digital trade and E- commerce. The project will also target representatives from the business sector (ex. ABAC members). Beneficiaries will be invited to the planned workshop and participate in the discussions.

Dissemination

The Study Report (minimum of 80 pages excluding annexes) will be an APEC publication.

Press release will be doen thourgh the channels of APEC website, Ministry of Foreign Affairs of Japan, and researcher's own website.

Conferences of other international forums can be taken advantaged for presentation on the project.

Gender

Please see Project Proposal in Supporting Documents folder.

Work Plan

Please see Project Proposal in Supporting Documents folder.

Risks

Please see Project Proposal in Supporting Documents folder.

Monitoring and Evaluation

Please see Project Proposal in Supporting Documents folder.

Linkages

Non-APEC stakeholders including international think-tanks, private entities and international organizations will be invited to the study as well as the hybrid workshop.


This project may make a good alignment to the Australian project on “APEC Digital Trade Provision Handbook” (CTI 01 2025S). The handbook deals with a wide range of provisions on Digital Trade including "Building trust" and "Data flows" with resommendations for higher commitments in FTAs while paying attantion to a balanced approach. This project will focus on Personal information protection and cross-border data flow. This project intends to support, in a way, the recommended commitment in the Handbook, based on the in-depth case study on legal setting and actual business pratices. The close collaboration with the Handbook project, as an unbrella initiative, this Digital Trade project will be able to elaborate the recomendations as well as provide additional ideas in order to make the Handbook to be useful and effective tool in this dimention.

Sustainability

This project will be implemented as a part of the new stream under Peru’s proposal on A way forward to implement the Ichma Statement on A New Look at the Free Trade Area of the Asia-Pacific (FTAAP) agenda. The workstream is expected until the end of 2026 and the results of the study will continue to feed in to the following FTAAP agenda initiatives.


Participants of the workshop include APEC economy officials, especially focusing on those who are engaged in trade negotiations for FTAs/RTAs in the area of digital trade and E-commerce, and other policy makers specialized in digital trade. They will have better understanding on the importance of trust and credibility in Digital Trade, thus will contribute to the improvement of Digital Trade provisions/policies.

Direct Labour

Please see Project Proposal in Supporting Documents folder.

Are there any supporting document attached?

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Project No.
Project Title
Project Status
Fund Account
Sub-fund
Project Year
Project Session
APEC Funding
Co-funding Amount
Total Project Value
Sponsoring Forum
Topics
Committee
Other Fora Involved
Other Non-APEC Stakeholders Involved
Proposing Economy(ies)
Co-Sponsoring Economies
Expected Start Date
Expected Completion Date
Project Proponent Name 1
Job Title 1
Organization 1
Telephone 1
Email 1
Project Proponent Name 2
Job Title 2
Organization 2
Telephone 2
Email 2
Declaration
Project Summary
Relevance
Objectives
Alignment
Beneficiaries and Outputs
Dissemination
Gender
Work Plan
Risks
Monitoring and Evaluation
Linkages
Sustainability
Direct Labour
Are there any supporting document attached?
hdFldAdmin
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Secretariat Comments
Reprogramming Notes
Consolidated QAF
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PD Sign Off
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Monitoring Report Received
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PMU Field 1
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Content Type: Standard Proposal