ASEAN-5: ASEAN, Australia and New Zealand sign FTA Upgrade including data localisation prohibition

On 21 August 2023, the Upgrade to the ASEAN-Australia-New Zealand Free Trade Agreement (AANZFTA) was signed. The Financial Services Annex prohibits parties from mandating local storage of financial data, except where necessary to protect personal information or under specific public policy exceptions. The prohibition aims to prevent trade barriers while allowing flexibility for data privacy safeguards. Provisions under the Electronic Commerce Chapter further reinforce this by requiring interoperable data protection systems and prohibiting arbitrary data flow restrictions.