MANILA, Philippines — The East Asia Business Council (EABC) is pushing for the Philippines to take a more proactive role in leveraging the Regional Comprehensive Economic Partnership (RCEP), noting that the landmark trade deal has so far primarily benefited the region’s larger economies.
Jay Yuvallos, the Philippine representative who assumed the chairship of the EABC on Wednesday, January 28, 2026, emphasized that his tenure will focus on integrating small and medium enterprises (SMEs) into regional value chains.
Untapped Potential for the Philippines Since its signing in 2020, the RCEP—which includes the 10 ASEAN nations along with Australia, China, India, Japan, South Korea, and New Zealand—aims to eliminate tariffs on 90% of traded commodities. However, the Philippines has lagged in utilization:
- The Imbalance: Yuvallos observed that more advanced economies like Japan and South Korea are currently reaping the lion’s share of RCEP benefits. “We want to change that,” he told reporters.
- SME Integration: The council aims to move beyond large-scale exporters and help local SMEs in sectors like semiconductors, shipbuilding, and automotive manufacturing find entry points into the regional market.
- Commercial Value: The goal is to transform the free trade agreement (FTA) into a tool that provides “clear commercial value” for smaller firms, rather than just a theoretical framework.
Learning from Neighbors To improve the country’s utilization of the pact, the EABC plans to study and adopt best practices from North Asian partners:
- Navigation Systems: Japan and South Korea have established robust support systems to help small businesses navigate the complexities of the agreement, a model the Philippines hopes to replicate.
- Public-Private Collaboration: The EABC will work closely with the Department of Trade and Industry (DTI), the Bangko Sentral ng Pilipinas (BSP), and the Department of Finance (DOF) to create a more supportive ecosystem for local businesses.
The RCEP Framework The agreement covers a broad range of sectors, including trade in goods and services, investment, intellectual property, e-commerce, and dispute settlement. By strengthening regulations for non-tariff measures and lowering barriers, RCEP offers a path for Philippine businesses to reach a market that accounts for nearly a third of the world’s population and GDP.
As Yuvallos begins his leadership of the EABC, the focus remains on ensuring that the Philippines’ participation in RCEP translates into inclusive growth that reaches the country’s most vital economic segment: its small and medium enterprises.