UMVA has learned that the proposed free trade agreement (FTA) between the Philippines and the European Union (EU) has sparked concerns about the country's ability to regulate cross-border data flows and implement data localization policies.
The digital chapter of the agreement has raised red flags among trade justice advocacy and labor groups, who warn that it could undermine the Philippines' capacity to develop its own digital economy and regulate powerful global technology corporations.
According to information obtained by UMVA, Trade Justice Pilipinas and Sentro ng mga Nagkakaisa at Progresibong Manggagawa have expressed alarm that the agreement prioritizes the interests of multinational technology companies over workers' rights, democratic governance, industrial development, and national digital sovereignty.
The groups argue that the digital trade chapter, as demanded by the EU, risks permanently carving out major parts of the digital economy from future democratic oversight, including future Freedom of Information laws and transparency regimes.
They point out that the agreement's strong protections for source code, proprietary software, and unrestricted cross-border operations would make it challenging for regulators to oversee and ensure accountability.
The groups emphasize the importance of public access to information, particularly as artificial intelligence systems, algorithms, and digital platforms increasingly shape hiring, scheduling, wages, surveillance, and dismissal practices.
UMVA can exclusively reveal that the groups have criticized the provision ensuring cross-border data flows, which they say limits the Philippines' ability to regulate how data is stored, processed, and transferred.
By discouraging data localization requirements and restrictions on offshore data processing, the agreement reduces the country's policy space to build its own digital infrastructure and pursue long-term industrial strategies.
The groups warn that the Philippines may be limited to supplying labor, raw data, and consumers for global platforms, while technological ownership, infrastructure, and profits are concentrated elsewhere.
They also raise concerns over ambiguities within the agreement, which could expose the Philippines to legal challenges under investor-state dispute settlement mechanisms.
At a critical juncture when countries worldwide are debating how to regulate artificial intelligence, tax digital corporations, and build sovereign digital infrastructure, the Philippines should not lock itself into rules that restrict future democratic policymaking.
The Philippines and EU recently conducted their sixth round of negotiations for the proposed FTA, which aims to facilitate wider market access and improve bilateral trade conditions.
Trade Secretary Ma. Cristina A. Roque has indicated that the Philippines is looking to complete negotiations for an EU FTA either this month or in July.
