PHL illicit trade risk ‘moderately high’

THE PHILIPPINES came in fifth in Southeast Asia in terms of fighting illicit trade — earning it a “moderately high risk” designation — due to corruption issues and the proliferation of counterfeit goods, according to the Transnational Alliance to Combat Illicit Trade (TRACIT).

In the 2025 Illicit Trade Index, the Philippines scored 51.1 out of 100, putting it at 69^th of 158 countries.

The score is compares with the Association of Southeast Asian Nations (ASEAN) average of 49.7.

The region is led by Singapore (29^th); Indonesia (39^th); Thailand (56^th); and Vietnam (61^st). The Philippine score was ahead of those of Malaysia (72^nd); Brunei (82^nd); Laos (100^th); Myanmar (117^th); and Cambodia (138^th).

TRACIT said Philippine vulnerabilities “are shaped by a large informal economy, extensive and difficult-to-police coastlines, persistent corruption risks and significant criminal activity across counterfeit goods, illicit tobacco, pharmaceuticals and environmental markets.”

It noted that 86% of vape and 19% of alcohol products sold in the Philippines are illicit.

The illicit pesticides market is an estimated $514.5 million, the group added.

It also noted the proliferation in counterfeit goods like clothing, luxury goods, electronics, and cosmetics.

“This situation is exacerbated by a large informal economy, persistent corruption risks, and significant levels of criminal activity,” the group said.

TRACIT cited the need for the Philippines to improve its consistency, predictability and transparency in handling intellectual property (IP) cases.

It also called for the reduction of unnecessary rights-holder costs in criminal IP enforcement and a move away from takedown-only enforcement to repeat-offender disruption.

TRACIT also called for stronger customs integrity and anti-corruption safeguards and the expansion of risk-based controls on maritime and small-parcel trade routes.

“ASEAN has made considerable progress in modernizing its customs systems, but regulatory frameworks are only as effective as their enforcement,” EU-ASEAN Business Council Executive Director Chris Humphrey was quoted as saying. — Beatriz Marie D. Cruz