USTR FLAGS CORRUPTION, TRADE BARRIERS IN PHILIPPINES ANEW

The United States Trade Representative (USTR) has once again identified corruption as a major obstacle to trade and investment in the Philippines, highlighting persistent issues across both public and private sectors.

In its 2026 National Trade Estimate (NTE) report released on March 31, the USTR described corruption in the country as “pervasive and longstanding,” pointing to key government institutions such as the Bureau of Customs (BOC), where allegations of bribery and irregularities continue to surface.

US businesses reportedly face costly delays, inconsistent fee assessments, and exhaustive inspections during customs processing.

The report also raised concerns over the lack of transparency in judicial and regulatory systems, warning that unchecked corruption could undermine reform efforts and destabilize broader economic programs.

Beyond corruption, the USTR identified several other trade-related concerns:

  • Intellectual Property Enforcement – Despite ongoing efforts to strengthen intellectual property protections, enforcement remains inconsistent. Online piracy and the sale of counterfeit goods persist, with the Greenhills Shopping Center again listed in the 2025 Notorious Markets for Counterfeiting and Piracy.
  • Labor Rights – The report noted that the Philippines has yet to implement a ban on the importation of goods produced through forced or compulsory labor, prompting US investigations alongside 59 other economies.
  • Wildlife Trafficking – Persistent illegal wildlife trade continues to undermine regulated commerce and poses risks to global supply chains.

The USTR also pointed out that the Philippines has not entered into a reciprocal trade agreement with the United States that could address these structural trade concerns.

Currently, Philippine exports to the US are subject to a 10% global tariff—lower than the 19% imposed in the previous year but still influenced by the evolving trade policies of U.S. President Donald Trump.

USTR Ambassador Jamieson Greer said the administration remains committed to addressing “unfair trade practices” in order to safeguard American workers.

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