Asean member-states have completed negotiations for the Asean Digital Economy Framework Agreement (DEFA), a regional pact aimed at strengthening cooperation in digital trade, e-commerce, electronic payments, cybersecurity, data governance, and other areas of the digital economy.
The negotiations were concluded on May 29 during the Second Asean Senior Economic Officials’ Meeting for the 57th Asean Economic Ministers Meeting (SEOM 2/57) held in Manila.
Department of Trade and Industry (DTI) secretary Ma. Cristina Roque, who serves as chair of the Asean Economic Community Council in 2026, described the completion of the negotiations as a significant step for regional economic integration.
“The completion of the DEFA negotiations is a historic milestone for Asean, demonstrating the remarkable progress we can achieve through unity and shared purpose,” Roque said.
“The conclusion of DEFA highlights how regional solidarity can unlock new avenues for growth and deliver tangible benefits to our people. This achievement not only sets a new benchmark for Asean’s digital transformation but also builds a foundation for a more inclusive and innovative future for all.”
The agreement is one of the priority economic deliverables under the Philippines’ 2026 chairmanship of Asean. Member states are expected to begin their respective domestic legal processes before the agreement is signed at the 49th Asean Summit scheduled for November 2026.
According to Asean officials, the DEFA seeks to facilitate cross-border digital transactions by establishing common frameworks for areas such as digital identities, online consumer protection, electronic payments, cybersecurity, data governance, and emerging technologies.
Roque said the agreement could help attract investments and expand opportunities for Philippine businesses, particularly micro, small, and medium enterprises (MSMEs).
“For the Philippines, the DEFA is set to bring real benefits to everyday Filipinos. It will help attract new investments, encourage innovation, and improve productivity nationwide,” Roque said.
“The DEFA is expected to empower local businesses, especially MSMEs, by opening up more opportunities and supporting job creation across the country. Most importantly, it will help ensure that the digital transformation is inclusive — so that more Filipinos can take part in and benefit from a safer, more connected digital economy.”
She added that the agreement includes commitments by Asean member states to implement personal data protection measures and online consumer safeguards to support regional digital trade.
The agreement comes as the Philippine digital economy continues to expand. Data from the Philippine Statistics Authority showed that the country’s digital economy reached P2.25 trillion in 2024, accounting for 8.5% of gross domestic product and supporting about 11.3 million jobs.
Meanwhile, the e-Conomy SEA 2025 report by Google, Temasek, and Bain & Company estimated the Philippine digital economy at $36 billion in 2025, driven largely by growth in e-commerce, digital payments, and online services.
At the regional level, Asean projects that implementation of the DEFA could help increase the value of the bloc’s digital economy from about $1 trillion to $2 trillion by 2030.
