The potential for growth for countries that embrace digital trade has been well documented and can add between 2 and 4% to GDP. Digital information flowswhich were practically nonexistent just 15 years agonow exert a larger impact on GDP growth than the centuries-old trade in goods, according to a new McKinsey Global Institute (MGI) report, Digital globalization: The new era of global flows. To fully achieve this vision within APAC, the recognition of the importance of the free flow of information for digital trade will be critical for businesses to fully realise the benefits of region-wide digital integration. In addition to transmitting valuable streams of information and ideas in their own right, digital platforms enable SME"S and micro businesses affordably access customers and suppliers globally. Virtually every type of cross-border transaction now has a digital component. This presentation will propose a Digital FTA for APEC, why it is needed now and what policymakers need to consider to make it work for their own economies benefit.