The digital chapter of the proposed free trade agreement (FTA) between the Philippines and the European Union has raised questions about the country’s ability to regulate cross-border data flows and pursue data localization policies, according to a report by BusinessWorld.
Critics argue that the agreement risks locking the Philippines into long-term digital dependency while undermining its capacity to develop a domestic digital economy. The digital trade provisions could restrict the government’s ability to require that data be stored locally, a common practice for protecting privacy and national security.
The concerns come as the Philippines seeks to balance economic integration with digital sovereignty. The outcome of the FTA negotiations could set precedents for how the country manages data flows in retail, supply chains, and other sectors that rely on product identification standards such as barcodes.