With this deal aiming to make cross-border e-commerce easier.
On Sunday, the economic ministers in the Association of South East Asian Nations (ASEAN) handed over the ASEAN Digital Economy Framework Agreement (DEFA) on the sidelines of the 49th ASEAN Summit in Manila.
President Ferdinand Marcos, Jr. witnessed the milestone in the presence of the 11 leaders of ASEAN and other dialogue partners, along with Trade and Industry Secretary Maria Cristina Roque and ASEAN Secretary-General Dr. Kao Kim Hourn.
The DEFA, which is described as the world’s first region-wide digital economy agreement, aims to set common rules on digital payments and data across the region once implemented.
According to the Philippine government, the effect of the agreement for Filipino entrepreneurs is straightforward, as the size of the potential market will no longer be limited to the customers within their own city, province, or country.
“This (DEFA) could allow Filipino entrepreneurs to receive payments from overseas customers more efficiently and conduct business with regional partners with fewer digital barriers,” it said.
Moreover, the agreement is also expected to strengthen cross-border e-commerce by making it easier for businesses to sell their products and services beyond the Philippine market.
Thus, benefitting micro, small and medium enterprises (MSMEs) that can use digital platforms to reach more customers without necessarily establishing physical operations in other countries.
As for Filipino online sellers, exporters and service providers, there will also be a bigger access to a more integrated digital market could mean greater opportunities to promote their products, attract international customers and build partnerships with businesses across Southeast Asia.
“It may also help reduce some of the difficulties associated with cross-border transactions, including payment processing and differences in digital regulations,” furthered the government, allowing for efficient online transactions as businesses.
ASEAN noted the successful implementation of DEFA could help unlock a regional digital economy worth as much as US$2 trillion by 2030.
