US: Corruption in Philippines a major barrier to trade

April 2, 2026 | 12:00am

MANILA, Philippines — Corruption continues to be a major hindrance to trade and investments in the Philippines, according to the United States Trade Representative (USTR). “Corruption is a pervasive and longstanding problem in both the private and public sector in the Philippines,” the USTR said in the 2026 National Trade Estimate (NTE) report released on March 31.

The USTR said corruption issues are present in both national and local government agencies in the Philippines.

It said the Bureau of Customs (BOC), in particular, is beset with various corruption issues, including allegations of overt bribery.

Despite the BOC’s attempts to address customs and corruption concerns, the USTR said reports of corruption and irregularities in customs processing are widespread.

These include incidents of undue and costly delays, irregularities in the valuation process, 100 percent inspection and testing of some products and inconsistent assessment of fees.

“Both foreign and domestic investors have expressed concerns about the lack of transparency in judicial and regulatory processes,” the USTR said.

The USTR also cited the lack of sufficient measures against market-distorting practices to insulate the US and Philippine markets and ensure a fair and secure trading relationship.

“The Philippines has not entered into an Agreement on Reciprocal Trade with the US that includes commitments to address these distortions,” the USTR said.

Concerns also remain on the Philippines’ intellectual property (IP) protection.

“While the Philippines has made progress in IP protection and enforcement since its removal from the Watch List in the 2014 Special 301 Report, the US continues to have concerns, including regarding inconsistent enforcement activities,” the USTR said.

In particular, it cited online piracy and sales of counterfeit goods, including apparel, shoes, watches, jewelry, perfume and electronics.

These concerns led to the continued inclusion of the Greenhills Shopping Center in the USTR’s 2025 Review of Notorious Markets for Counterfeiting and Piracy or list of piracy hotspots.

Other concerns raised by US stakeholders include slow prosecution and conviction of IP cases.

There are also concerns on transparency and fairness in the protection of geographical indications or signs used on products that have a specific geographical origin and possess qualities due to that origin.

Other barriers cited in the report relate to import policies, sanitary and phytosanitary measures, government procurement and foreign ownership limits.

Published annually, the NTE details significant foreign trade barriers faced by US exports and the US government’s efforts to address such to ensure a playing field for American workers.

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