Landmark ASEAN digital pact to unlock markets

Filipino entrepreneurs could soon gain easier access to regional customers as the Philippines prepares for the signing of the ASEAN Digital Economy Framework Agreement (DEFA), a landmark pact expected to expand cross-border e-commerce and strengthen investor confidence in Southeast Asia.

Trade officials said the agreement will create a more connected digital marketplace where businesses — especially micro, small and medium enterprises (MSMEs) — can sell products beyond domestic borders, while providing clearer rules for companies investing in the region.

Denise Cheska Enriquez, division chief for regional relations at the Bureau of International Trade Relations, said ASEAN economic ministers began negotiations for DEFA in September 2023 as digital trade rapidly expanded worldwide.

Legal review underway

ASEAN members completed negotiations on 29 May, with legal review now underway before the agreement’s planned signing in November 2026 during the 49th ASEAN Summit, which the Philippines will host.

“DEFA is ASEAN’s most comprehensive regional agreement on the digital economy. It establishes a framework in the region where we want to facilitate trade, strengthen digital connectivity, promote innovation, and enhance cooperation among member states,” Enriquez said.

The agreement aims to create regional standards for an open, secure, interoperable, competitive and inclusive digital economy across Southeast Asia.

Phl well-positioned to benefit from DEFA

Enriquez said the Philippines is well-positioned to benefit from the pact as its digital economy continues to expand. Government data showed the sector’s gross value added rose from P2.59 trillion in 2024 to P2.74 trillion in 2025, accounting for nearly 10 percent of gross domestic product and supporting around 11 million jobs.

She said DEFA will help more businesses participate in digital trade by reducing barriers and improving confidence among companies and investors operating across ASEAN.

“For Philippine enterprises, the agreement will make it easier to expand into regional and global markets through e-commerce,” Enriquez said.

She noted that traditional businesses such as coffee producers, weavers and furniture makers previously depended on physical stores and trade exhibitions to reach buyers.

“But now with the onset of e-commerce, it is possible for entrepreneurs to showcase their products online, accept digital payments, and even reach consumers outside of the Philippines,” she said.

Strengthen investment environment

During the dialogue, Department of Trade and Industry Undersecretary Allan Gepty said DEFA would also strengthen the investment environment by establishing common rules among ASEAN economies.

Gepty said the agreement would provide binding disciplines on cybersecurity, data privacy and confidentiality, as well as the cross-border transfer of electronic information.

These standards, he said, are expected to create a more stable, predictable and fair digital business environment that can encourage greater foreign investment while allowing local companies to compete more effectively in the regional economy.

With ASEAN’s digital market continuing to grow, trade officials said DEFA could become a key platform for Filipino businesses seeking new customers, stronger partnerships and wider opportunities beyond the Philippine market.