ASEAN-5: ASEAN, Australia and New Zealand FTA Upgrade including data localisation prohibition entered into force

On 21 April 2025, the Upgrade to the ASEAN-Australia-New Zealand Free Trade Agreement (AANZFTA) entered into force, following its adoption on 21 August 2023. The Financial Services Annex prohibits parties from mandating the local storage of financial data, except where necessary to protect personal information or in accordance with specific public policy exceptions. This provision aims to reduce trade barriers while allowing for data privacy safeguards. The Electronic Commerce Chapter further supports this by promoting interoperable data protection systems and limiting arbitrary restrictions on data flows. These provisions currently apply to Australia, New Zealand, Singapore, Malaysia, Laos PDR, and Brunei Darussalam, with their entry into force for the remaining ASEAN Member States contingent on the completion of domestic procedures.