MANILA, Philippines — As members of the Regional Comprehensive Economic Partnership (RCEP)
prepare for the agreement’s first General Review, the East Asia Business
Council (EABC) convened the inaugural RCEP Business and Investment Summit in
Manila, bringing together business leaders, policymakers, economists, and
regional stakeholders to examine how the Philippines and the wider region can
strengthen economic integration amid a more uncertain global trading
environment.
Held under the Philippine co-leadership
of EABC, the summit comes as businesses contend with geopolitical tensions,
renewed protectionism, tariff disruptions, and increasingly vulnerable supply
chains that are reshaping how companies approach trade and investment.
Opening the summit, EABC Chairperson Jay
Yuvallos said businesses must rethink how they participate in an increasingly
interconnected but exposed global economy.
“The business model that served us for
decades was built around ‘Just-in-time.’ Now, ‘Just-in-time’ must increasingly
be matched with ‘Just-in-case,’” Yuvallos said. “In other words, resilience has
to become part of how we design our value chains.”
Yuvallos said the challenge is no longer
whether businesses should participate in global trade, but how economies can
remain competitive and continue to grow when global trade is disrupted.
“This is where I believe regional
integration becomes a strategic advantage,” he said.
Yuvallos emphasized that the value of
RCEP should be measured not only by the agreement itself, but by how
effectively businesses, governments, investors, and institutions use the
regional architecture it provides.
Making RCEP work for business
For the business community, the upcoming
General Review provides an opportunity to examine how RCEP can better respond
to the practical realities businesses face when operating across borders.
While tariff preferences remain
important, businesses must also navigate customs procedures, standards,
documentation, logistics, financing, and other requirements that can determine
whether formal market access translates into actual commercial opportunities.
Department of Trade and Industry
Secretary Ma. Cristina A. Roque urged businesses to provide the government with
concrete feedback on the barriers they encounter as the Philippines prepares
for the RCEP General Review.
“We need your feedback. Tell us what
needs to work better—customs procedures, sourcing requirements, and other
barriers that affect your operations,” Roque said, stressing the need for
government and business to work together to make trade agreements more
practical, responsive, and relevant to business plans.
Roque also underscored the importance of
maximizing the Philippines’ existing trade agreements and strengthening the
country’s export performance.
The Philippines recorded strong export
growth in 2025, with exports up 15.4% to an all-time high.
Roque said these gains demonstrate the
capacity of Philippine products to compete in global markets, but emphasized
that trade agreements create opportunities only if businesses can use them.
“These FTAs remain as agreements unless
we maximize or use their full potential,” Roque said, calling for closer
collaboration between the Philippine government and the private sector to
communicate the benefits of trade agreements and help businesses take advantage
of them.
The secretary also pointed to RCEP’s
potential to give businesses access to a market of more than 2.3 billion
people, while allowing companies to diversify suppliers, expand production
networks, and reach more customers.
Positioning the Philippines in the ASEAN+3 economy
The summit also examined the Philippines’
position within the wider ASEAN+3 (ASEAN plus China, Japan, and Republic of
Korea) economic space, which is increasingly becoming not only a major
production base but also a significant regional market and investment
destination.
The Philippines already participates in
23 free trade agreements and has established export strengths in sectors
including semiconductors and agriculture.
The challenge, summit participants noted,
is to build on these strengths by connecting Philippine businesses more deeply
to regional supply chains and investment networks.
This includes identifying opportunities
for the country to move into higher-value segments of regional production while
strengthening the systems that allow Philippine businesses to connect with
regional markets.
Bringing MSMEs into the regional economy
The summit also highlighted the need to ensure
that smaller businesses can benefit from regional integration.
For many micro, small, and medium
enterprises (MSMEs), becoming a direct exporter remains difficult. Still,
participation in the regional economy can take other forms, including serving
as suppliers, distributors, service providers, and partners within regional
value chains.
Roque highlighted the government’s
ongoing efforts to give MSMEs greater market access and connect them to
opportunities through private-sector initiatives.
Yuvallos similarly stressed the need to
make it easier for MSMEs to understand and use the opportunities created by
RCEP.
“We need businesses—especially our
MSMEs—to participate in regional value chains, and we need to make it easier
for companies to understand and actually use the opportunities that RCEP
provides,” Yuvallos said.
The summit brought these issues together
around a broader question for the Philippines: where does the country want to
sit in East Asia's growth story, and what systems are needed to get there?
As the RCEP General Review approaches,
EABC said the business community should play an active role in shaping the next
phase of regional integration—not only by identifying barriers, but by
advancing concrete solutions that strengthen connectivity, investment,
competitiveness, and resilience.
“The future of regional integration will
not be written by agreements alone. It will be built by the businesses,
institutions, and people who choose to connect,” Yuvallos said.
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About the East Asia Business Council
The East Asia Business Council (EABC) is a private-sector
platform that supports regional economic integration across East Asia. It was
established in 2003 following recommendations from the East Asia Study Group
and endorsed by ASEAN+3 Leaders. The Council brings together senior business
leaders from ASEAN member states, China, Japan, and the Republic of Korea,
representing 13 economies. Each country nominates three representatives,
including one from the SME sector, ensuring diverse business perspectives in
regional policy discussions.
In 2026, the Philippines holds the Chairmanship, with Japan
serving as Co-Chair, with priorities focused on digitalization, sustainability
and the circular economy, supply chain resilience, and expanding MSME
participation in regional growth.
Media Contact
Mef Marzan
Media and PR for EABC Chair
mfgamarzan@gmail.com
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