Philippines Takes Helm of East Asia Business Council to Empower SMEs in Regional Trade
The Philippines has officially assumed the chairmanship of the East Asia Business Council (EABC) for 2026, a strategic move expected to significantly enhance market access and reduce trade barriers for small and medium enterprises (SMEs) across the nation. This leadership role comes at a crucial time as the country intensifies efforts to foster deeper private-sector involvement in the Regional Comprehensive Economic Partnership (RCEP), the world's largest trading bloc.
Strengthening Private Sector Voice in Shifting Trade Landscape
Jay Yuvallos, president of the Cebu Chamber of Commerce and Industry who concurrently chairs both EABC Philippines and the regional council, emphasized that this position grants the private sector a more influential voice in shaping East Asia's business priorities. This is particularly vital as global trade patterns undergo rapid transformation and supply chains are being reconfigured on an unprecedented scale.
The EABC represents the 11 economies of ASEAN, now expanded to include economic powerhouses Japan, China, and South Korea. It serves as the primary private-sector platform connected to RCEP, which encompasses approximately US$30 trillion in combined gross domestic product and 2.3 billion people, making it the most substantial trading agreement globally.
Philippine-Japan Leadership Focuses on Key Growth Areas
With the Philippines holding the chairmanship and Japan serving as co-chair, represented by Tetsuya Matsuoka, this year's leadership agenda is centered on several critical initiatives. These include advancing digitalization across industries, promoting sustainability and circular economy practices, strengthening regional supply chains, and enhancing the role of micro, small, and medium enterprises in driving East Asia's economic growth.
Yuvallos highlighted that the Philippines' simultaneous leadership of both the EABC and the RCEP Business Advisory Council creates a unique opportunity to advocate for policies that make the trade framework more accessible to SMEs. These businesses often face challenges with complex regulations, high compliance costs, and limited market information that can hinder their international expansion.
Moving Beyond Awareness to Practical Support for SMEs
"RCEP can look overwhelming for small businesses, but with clear rules and the right support, it actually levels the playing field," Yuvallos stated during a 20-minute interview with ANC. "Our goal is to get more Filipino SMEs into the game."
A central focus of the Philippine chairmanship involves transitioning from basic awareness campaigns to providing hands-on advisory services and specialized "clinics" that help enterprises navigate RCEP's intricate rules. These initiatives will specifically address understanding rules of origin, digital trade provisions, and regional value chains, enabling SMEs to participate not merely as exporters but also as suppliers to larger corporations operating within economic zones.
Digitalization and Sustainability as Growth Catalysts
The agenda strongly emphasizes digitalization and sustainability as fundamental enablers of business growth. Yuvallos pointed to the planned regional digital economy framework, anticipated to be signed this year, which could substantially reduce transaction costs for smaller firms by streamlining documentation, payment processes, and certification requirements.
"Lower costs and faster payments are critical for SMEs because cash flow is everything," he explained, noting that digital trade platforms could allow businesses to securely send invoices and certificates while accelerating settlement times.
Creative Industries Poised for Regional Expansion
Creative sectors such as animation, gaming, and digital content have been identified as areas where Philippine SMEs, particularly those based in Cebu and Metro Manila, can scale up from subcontracting roles to establishing regional partnerships. This expansion is facilitated by RCEP's intellectual property protections and digital trade provisions that create more favorable conditions for creative enterprises.
Governance and Transparency as Foundation for Success
Business leaders have underscored that the initiative's success will depend heavily on robust governance, transparency, and trust, which remain paramount considerations for investors and trading partners. Despite domestic political challenges, Yuvallos emphasized that strong institutions and clear processes are essential for the Philippines to maintain global competitiveness in the evolving trade landscape.
Nationwide Rollout of Advisory Services
In collaboration with the Philippine Chamber of Commerce and Industry, regional chambers, and the Department of Trade and Industry, the EABC plans to implement advisory services nationwide. This comprehensive approach aims to ensure that RCEP becomes integrated into the "default mindset" of Filipino entrepreneurs, making regional trade opportunities more accessible across the archipelago.
"Our ambition is simple," Yuvallos concluded. "Get more SMEs ready, get them connected and help them grow with the region."
