Trade Secretary Cristina A. Roque said the landmark ASEAN Digital Economy Framework Agreement (DEFA) could reshape regional commerce by lowering barriers to cross-border digital trade, opening a larger market for Philippine businesses and accelerating Southeast Asia’s digital economy into a multi-trillion-dollar growth engine.
Speaking at the ASEAN Tech Summit Manila 2026, Roque said negotiations for DEFA concluded on May 29, with the agreement set to be signed during the ASEAN Leaders’ Summit in November under the Philippines’ ASEAN chairmanship.
“This is ASEAN’s first region-wide agreement dedicated to the digital economy,” Roque said. “Its objective is straightforward: to make digital trade easier, safer, and more seamless across ASEAN.”
Roque said the agreement could help expand ASEAN’s digital economy to between USD2 trillion and USD3 trillion by 2030 by creating common rules that encourage investment, improve interoperability and strengthen consumer trust across the region.
The Philippines is entering that transition from a position of strength.
Roque said the country’s digital economy grew 5.4 percent in 2025, outpacing overall economic growth of 4.4 percent. Philippine e-commerce also reached about USD36 billion last year, while nearly 475,000 Filipino merchants now use digital platforms, generating more than 1.2 billion transactions annually.
“The digital economy is no longer simply supporting economic growth. It is becoming one of its major drivers,” she said.
For businesses, DEFA’s biggest promise lies beyond headline growth. Harmonized digital rules could reduce compliance costs, simplify cross-border transactions and make it easier for Philippine startups and micro, small and medium enterprises to expand across Southeast Asia’s nearly 680-million-strong market.
ASEAN’s digital momentum continues to build. The region’s gross merchandise value has climbed more than sevenfold since 2016 to over USD300 billion in 2025, while more than 17 percent of venture capital investments now flow into digital enterprises.
Roque said DEFA will provide a more predictable framework for digital trade and investment, giving Filipino startups, content creators and technology firms a stronger platform to compete across one of the world’s fastest-growing digital markets.
