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Modernizing Digital Trade: Updating the CPTPP’s Digital Economy Measures

About

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AusPECC and the Canadian National Committee for Pacific Economic Cooperation (CANCPEC) jointly led a PECC project which provides a set of recommendations to contribute to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) General Review for Chapter 14 on Electronic Commerce (E-Commerce). A key objective was to promote the enhancement of the e-commerce provisions of the agreement to contribute to more collaborative, open and integrated economies across the Asia-Pacific region. 

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When the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) entered into force in 2018, Chapter 14 on Electronic Commerce represented a forward-looking approach to digital trade. Since then, the digital economy has undergone a radical transformation, fuelled by breakthroughs in digital technologies and artificial intelligence (AI), alongside dramatic shifts in geopolitical dynamics. These developments have created both new opportunities and emerging risks, underscoring the urgent need for updated regulatory frameworks and international co-operation to ensure the relevance of the CPTPP’s digital provisions.​

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Paper and recommendations

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The project provides a set of recommendations on how to enhance Chapter 14, drawing on the expertise across PECC member networks. 

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Developed through a Track 1.5 process jointly led by CANCPEC and AusPECC, the recommendations are set out in a report, whose findings are grounded in the insights of 25 experts from 11 PECC economies.​ AusPECC's team of digital trade experts contributed to the paper, led by Grace Gown. 

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Access the report here.

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The report was submitted by CANCPEC and AusPECC to the CPTPP Commission at its meeting held in Melbourne, Australia on the Week of November 17, 2025, in the hope that it will serve as a constructive contribution to the ongoing General Review process — assisting CPTPP members, policymakers, and the broader trade community in charting a dynamic, inclusive, and forward-looking path for digital trade.

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Key Insights

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Digital trade now spans every industry, from goods and services to data and algorithms. It offers significant opportunities for growth and inclusion, but also presents new risks around trust, security, governance, and cross-border data flows. For the CPTPP to remain a future-oriented framework, its digital economy measures must keep pace with these changes.

 

The report outlines 13 actionable recommendations for policymakers aimed at ensuring that Chapter 14 of the CPTPP continues to serve as a global framework for digital trade. These recommendations address:

  • Artificial Intelligence (AI) Governance – promoting responsible and transparent AI use

  • Cross-Border Data Flows and Governance – enabling data mobility while protecting privacy and security

  • Cybersecurity and Digital Trust – enhancing resilience and consumer confidence in digital transactions

  • Inclusion and MSME Participation – supporting equitable access to digital trade opportunities

  • Regulatory Co-operation – strengthening interoperability and collaboration across CPTPP economies

 

Each recommendation reflects the direct engagement of industry practitioners and technical experts, ensuring that proposed updates are commercially relevant, technically sound, and practically implementable.

 

The objective is clear: to help the CPTPP retain its status as a “gold-standard” regional agreement for digital trade, one that supports open, trusted, and integrated economies across the Asia Pacific. By updating its digital economy measures, the Agreement can strengthen its relevance and resilience in the face of rapid change.

 

Events

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A hybrid roundtable was convened in November 2024 to launch the project. This event was the first gathering of more than fifteen digital trade experts from eleven APEC economies to discuss how to ensure the CPTPP remains of the highest possible standard for the region in a time of rapid digital advancements. PECC committees, experts and participants discussed expected outcomes and objectives and exchanged views on the possible scope for the overall Chapter 14 review. Read the outcomes of the meeting here. A second virtual roundtable discussion was held in February 2025. Read the outcomes of the meeting here.

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Next Steps

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AusPECC welcomes input and interest in the report from the APEC Community. Please contact us at info@auspecc.org.au for further information.

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