No final code of conduct on South China Sea – DFA

Asean adopts framework to protect migrant workers

MANILA, Philippines — The Philippines has missed its goal of concluding negotiations for a legally binding Code of Conduct (COC) in the South China Sea, as it ends its chairship of the Association of Southeast Asian Nations (ASEAN) this year.

At a press conference yesterday, Foreign Affairs Secretary Ma. Theresa Lazaro said the ASEAN and China have completed negotiations for a COC by 77 percent to about 80 percent, with the Philippines shepherding the whole process toward a final phase.

“We are pleased to report the substantial completion of the negotiations on the ASEAN-China Code of Conduct. The parties in the South China Sea have reached provisional agreement on about 80 percent of the paragraphs of the draft COC,” she said.

“We leave this almost 80-percent finished document to Singapore as the next chair,” Lazaro said.

Of the four major issues, Lazaro said the negotiators agreed on the relationship between the COC and the 2002 ASEAN-China Declaration of Parties in the South China Sea (DOC).

As initially agreed upon, a COC should be consistent with and built upon the principles of the DOC.

The DOC has set up more effective and substantive provisions to guide the conduct of the parties in the South China Sea.

A regional code of conduct aims to prevent conflicting territorial claims in the South China Sea from erupting into violent confrontations.

ASEAN leaders have also adopted a policy framework for strengthening protection for migrant workers against fraudulent online recruitment and human trafficking.

Department of Migrant Workers Secretary Hans Leo Cacdac yesterday said the ASEAN Declaration on Fair, Ethical and Sustainable Recruitment for Empowered Migrant Workers would help protect around 600,000 Filipino migrant workers across ASEAN member states.

“Cooperation all across – will be further intensified – first, to curb these scam hubs, and second, to provide greater assistance to OFWs who have become involved in this type of work,” he said at a press briefing at the International Media Center in Pasay.

Cacdac said the DMW is monitoring around 90 to 100 Filipinos allegedly being trapped in online scam hubs in Myanmar.

Palace press officer Claire Castro said the declaration seeks to ensure accountability and tighter regulation of recruitment agencies, prevent excessive recruitment fees, promote equal employment opportunities, provide protection and justice for workers and strengthen cooperation among nations. Cacdac said he expects the initial implementation of the declaration by early 2027.

Semiconductor framework

Meanwhile, a regional strategic framework for semiconductor supply chains, one of the priority economic deliverables this year, has also been finalized.

“It was also just finalized (on Saturday) and will be soon distributed to the member states. It lets each of our nations build our part of the value chain, so that more of the gains stay in ASEAN,” Finance Secretary Frederick Go said in his ASEAN Business and Investment Summit 2026 speech yesterday.

The ASEAN semiconductor roadmap provides a regional strategic framework for semiconductor supply chains to expand the Philippines’ capabilities beyond assembly, testing and packaging into integrated circuit design, advanced packaging and high-performance computing.

Another priority deliverable, the Digital Economy Framework Agreement, was signed on Saturday and is now being readied for domestic implementation.

The Philippine government is also actively promoting the semiconductor and electronics industry for investments as the country aims to play a bigger role in the global supply chain.

“Electronics are the Philippines’ largest export and chips are the physical foundation of every AI (artificial intelligence) model on earth. The world’s appetite for AI already runs through Southeast Asian factories and our own trade figures show it,” Go said.

Last year, electronics products, including semiconductors, accounted for 58.81 percent of Philippine exports.

Total Philippine electronics exports reached $49.64 billion last year, up by 16 percent from $42.75 billion in 2024.

“The Philippines is endowed with critical minerals such as nickel, copper, gold and chromite, some resources the AI economy needs,” the finance chief said.

Go said copper is used in data centers while nickel is needed for batteries that store clean energy.

“We are also setting the stage for AI’s gateway in the country. The Luzon Economic Corridor, or the LEC is an important initiative that started with three founding partners, the Philippines, the United States and Japan,” he said, noting it has since grown to 13 partners.

Go said achieving greater digital integration requires governments to prioritize three key areas: reliable and clean power to support AI infrastructure, predictable policies to attract long-term investments and fiscal discipline to sustain investor confidence.

Trade gateways

The Philippines is also looking at strengthening trade and investment ties with Brazil by positioning itself as a gateway to the ASEAN and using the South American country as its springboard to the Southern Common Market (Mercosur).

“To our Brazilian partners, the Philippines is not just a market but a strategic investment destination and the platform for growth across ASEAN,” Trade Secretary Cristina Roque said at the Brazil-Philippines Business Forum held on the sidelines of the ASEAN Summit.

Trade Undersecretary Ceferino Rodolfo said that Brazil can also serve as the Philippines’ gateway to the Mercosur, a trade bloc composed of Brazil, Argentina, Paraguay, Uruguay and Bolivia.

“We’re really trying to work closely with Brazil because Brazil is one of the biggest economies when it comes to Mercosur. So we can really be the bridge to each other when it comes to them looking at ASEAN and then us looking at Mercosur,” he said.

Brazilian President Luiz Inácio Lula da Silva’s remarks, delivered by Minister Marcio Elias Rosa, emphasized that the Philippines and Southeast Asia are important markets to Brazil.

“There are many opportunities to bring our economies closer together. It is our responsibility to turn them into concrete results,” Lula said.

For Brazil, biofuels industry is an area where the two countries can work together.

“Biofuels are the best option for decarbonizing sectors such as aviation and maritime transport. The Philippines already blends ethanol into gasoline and is considering increasing its share. We want to put our experience to work in developing new industrial and technological partnerships,” Lula said.

Apart from renewable energy and biofuels, Roque said agriculture and food security, semiconductors and digital trade and innovation are seen as promising areas for cooperation.

She said the Philippines wants more of its products to reach the Brazilian market, citing vast opportunities for coconut products, mangoes and calamansi.

Rodolfo said the Philippines also sees opportunity for its tuna and sardines in Brazil, citing the growing trend among the younger population to go for healthy products.

In addition, he said there are opportunities for the Philippines’ semiconductor and electronic products given Brazil’s interest in these products.

Despite the distance between the two countries, Ayala Corp. chairman Jaime Augusto Zobel de Ayala said that both share the warmth of people, the importance placed on family and community, aspirations for a better future for succeeding generations, as well as the economic challenge of expanding opportunities.

As the Philippines and Brazil seek to expand opportunities, he said the group is open to partnerships and opportunities to work with Brazilian businesses.

In particular, he cited food security, clean energy, and technology as potential areas of collaboration. — Helen Flores, Aubrey Rose Inosante