While headlines from President Donald J. Trump’s whirlwind tour of Asia have focused on outcomes of U.S. talks with China, it was the administration’s dealmaking in Southeast Asia that netted some of the most significant results in an area of upmost importance to the American economy—technology.
Specifically, the President announced new trade deals with Cambodia and Malaysia, and released a joint statement with Thailand that opens the door to meaningful digital trade alignment with fast‑growing Southeast Asian economies. These agreements offer a template for continued U.S. leadership in the digital economy.
The released texts include a number of significant wins for the United States, including commitments to block digital services taxes (DSTs), refrain from discrimination against U.S. digital services and products, and support the free transfer of data across borders:
Cambodia “shall not impose digital services taxes, or similar taxes, that discriminate against U.S. companies, in law or in fact.” Further, it “shall facilitate digital trade with the United States, including by refraining from measures that discriminate against U.S. digital services or U.S. products distributed digitally, ensuring the free transfer of data across trusted borders for the conduct of business, and collaborating with the United States to address cybersecurity challenges.” Reflecting the broader geopolitical landscape, Cambodia also committed to “consult with the United States before entering into a new digital trade agreement with another country that jeopardizes essential U.S. interests.” Malaysia similarly committed to language facilitating digital trade, cybersecurity collaboration, and consultation with U.S. officials on future digital trade deals with third countries, while rejecting digital services taxes. Thailand agreed to “address barriers impacting digital trade, services, and investment” and “refrain from imposing digital services taxes or measures that discriminate against U.S. digital services or digital products; to ensure the free transfer of data across trusted borders for the conduct of business; to support a permanent moratorium on customs duties on electronic transmissions at the WTO; to refrain from imposing screen quotas for film; to ease foreign ownership restrictions for U.S. investment in Thailand’s telecommunications sector; and to remove in-country processing requirements for all domestic retail electronic payment transactions for debit cards.”
For U.S. firms, these outcomes offer practical and immediate benefits. They support secure, trusted data movement, nondiscriminatory treatment of digital services and products, and clearer rules that underpin everyday commerce.
The range of American companies that will benefit is broad. For example:
Manufacturers rely on over the air software to keep equipment safe and efficient;
Engineering teams move large files across time zones to meet production schedules;
Logistics networks depend on real time routing and inventory data to keep goods moving;
Healthcare, insurance, and telehealth providers must process sensitive information securely across borders;
Cybersecurity teams need data flows to effectively detect and disrupt criminal activity; and
Creative industries distribute content globally at low marginal cost.
These new trade deals will help all these companies deliver these goods, services, and benefits. Credit is due to the U.S. negotiators—at the Office of the U.S. Trade Representative and other agencies—for translating summit diplomacy into concrete policy wins, especially in advancing priorities important to economic growth in the modern economy.
Implementation will be key. These announcements lack treaty-bound disciplines and formal dispute mechanisms. Their durability will be tested by domestic policy cycles, bureaucratic turnover, and changing priorities in all capitals. USTR knows this and will no doubt remain vigilant.
Even with these reservations, these texts advance U.S. priorities in the digital economy: free data flows, nondiscrimination, restraint on DSTs, and support for renewing the WTO e-commerce moratorium. This welcome news signals that the Trump administration understands and is willing to advocate for these important priorities. And it should serve as a template for negotiations with other countries that continue to threaten harmful digital policies despite U.S. objections.
About the author
Jordan G. Heiber
Jordan Heiber leads the Chamber’s international privacy and data flow policy portfolio and manages a team responsible for the full suite of digital policy issues, including cybersecurity, artificial intelligence, and more.