The United Nations Economic and Social Commission for Asia and the Pacific (ESCAP) says the inclusion of artificial intelligence (AI) provisions in preferential trade agreements (PTAs) has seen a steady increase in recent years.
ESCAP noted that since 2019, when AI was first mentioned in the China- Mauritius Free Trade Agreement, PTAs have progressively adapted to address the broader implications of emerging technologies. Although dedicated AI articles remain rare, provisions related to AI are often embedded within frameworks governing digital trade and data governance.
These provisions typically focus on promoting cross-border collaboration, ensuring the ethical use of AI, enhancing algorithmic transparency, and fostering trust in AI systems, highlighting the potential of PTAs to not only stimulate economic growth but also support the responsible and equitable adoption of new technologies, says ESCAP.
Asia-Pacific: A Global Leader in AI-Related PTAs
ESCAP says the recognition of AI in PTAs is growing, particularly in the Asia-Pacific region. As of January 2025, 14 out of 16 global trade agreements incorporating AI provisions originate from economies within this region. Leading contributors include technologically advanced countries such as Singapore, the Republic of Korea, Australia, and New Zealand, says ESCAP.
“These nations have developed comprehensive AI policies and legal frameworks covering areas like data privacy, cybersecurity, data flows, and intellectual property, which significantly influence AI development. For example, in 2024, the Republic of Korea introduced the AI Basic Act—a comprehensive legal framework to regulate AI, which will take effect in January 2026.”
“Furthermore, countries such as the Republic of Korea, Singapore, Australia, and New Zealand have signed several memoranda of understanding (MoUs) on AI cooperation, building upon bilateral agreements, such as the Republic of Korea-Singapore agreement (2022) and the Australia-Singapore and Australia-Republic of Korea agreements (both signed in 2024).”
ESCAP notes that despite the significant presence of AI provisions in Asia-Pacific PTAs, Least Developed Countries (LDCs), Landlocked Developing Countries (LLDCs), and Pacific Island Developing Economies are largely absent from this trend (Figure 1). An exception to this is the Cambodia-UAE Comprehensive Economic Partnership Agreement, which includes AI provisions at an early stage, marking an important step for LDCs that have traditionally lagged in adopting digital trade provisions.
The Current Landscape of AI Provisions in PTAs
“Given AI’s broad and cross-cutting nature, references to AI in PTAs span various chapters, often within digital trade, economic cooperation, or innovation frameworks. Among the 14 PTAs in the Asia-Pacific region, nine include specific provisions dedicated to AI, while the remaining five address AI within broader cooperation frameworks. Although only 2.5 percent of trade agreements globally explicitly reference AI, there is an increasing focus on dedicated provisions that emphasize ethical governance frameworks.”
The three key features of dedicated AI provisions are as follows:
- Recognition of AI’s Importance: Acknowledging the growing significance of emerging technologies and AI, which offer substantial social and economic benefits to individuals and businesses.
- Promotion of Ethical Governance Frameworks: Encouraging the development of internationally aligned governance frameworks to ensure the responsible, ethical, and trusted use of AI. Notably, six out of the nine PTAs with dedicated AI provisions do not specify which recognized frameworks should be adopted. Among the few that do, the Australia-United Kingdom PTA, Singapore-United Kingdom Digital Economy Agreement (DEA), and New Zealand-United Kingdom PTA refer to frameworks like the OECD Principles on AI (2019) and the Global Partnership on AI (2020), which was initiated by Canada and France in 2018.
- Cooperation on Emerging Technologies: Fostering collaboration on AI research, responsible business use, commercialization opportunities, and investments in research and development.
Despite these shared goals, ESCAP says the comprehensiveness of AI provisions varies significantly across different PTAs. For instance, the Singapore-United Kingdom DEA and New Zealand-United Kingdom PTA place additional emphasis on risk management, technological interoperability, and technological neutrality within their governance frameworks.
