Phl most improved in strategic goods trade – index

The Philippines was the most improved country in terms of implementation of trade regulations on strategic goods, as it moved up to 49th place in the 2021/2022 Peddling Peril Index (PPI) from 86th in the previous year.

PPI is issued by the Institute for Science and International Security, a non-profit, nonpartisan organization primarily focused on stopping the spread of nuclear weapons and related technology to terrorists.

In a statement yesterday, Trade Secretary Ramon Lopez said the PPI rates 200 nations based on their strategic trade control adoption and implementation with the aim of helping countries have a stronger system by looking into implementation and enforcement, as well as progress made over time.

Strategic goods are items with civilian and military applications, with many used as materials or parts of weapons of mass destruction (WMD).

Many countries have strategic trade control laws in place in compliance with their obligation under treaties and international agreements to prevent the proliferation of WMD.

For its part, the Philippines has enacted Republic Act 10697 or the Strategic Trade Management Act (STMA) which established the National Security Council – Strategic Trade Management Committee to serve as the central authority on all matters relating to strategic trade management.

Under the STMA, the Strategic Trade Management Office (STMO) was also created as a bureau under the supervision of Department of Trade and Industry (DTI) to be responsible for the registration activities, as well as issuance of authorizations, conduct of risk assessments and investigations on cross border trade in strategic goods.

Enterprises engaged in the export, reexport, reassignment, transit, transshipment and import of strategic goods, as well as related services such as brokering, transporting financing and providing technical assistance, are covered by the STMA’s regulatory requirements.

In ranking countries, the PPI looked at five super criteria: international commitment to preventing strategic commodity trafficking; legislation to regulate and oversee strategic commodity trade; ability to monitor and detect strategic trade; ability to prevent proliferation financing, and effectiveness of enforcement against strategic commodity trafficking.

The Philippines achieved more than 50 percent of the total possible points in four major criteria.

In particular, it got 87 percent (174 out of 200) in legislaA tion, 71 percent (282 out of 400) in terms of adequacy of enforcement, 65 percent (129 out of 200) when it comes to ability to monitor and detect strategic trade, and 58 percent (58 out of 100) in international commitment.

While the Philippines only achieved 28 percent (113 out of 400) in terms of capacity to prevent proliferation financing, this was the criterion where it got the highest increase in score as it notched only 29 points in the previous index.

The DTI said this can be attributed to the STMO’s issuance of guidelines to comply with the requirements of the Financial Action Task Force on the Implementation of financing and brokering.

In addition, the Anti-Money Laundering Council also issued targeted financial sanctions related to proliferation of WMD and proliferation financing last February.

Through Congress’ passage of one of the world’s most comprehensive strategic trade control legislation, Trade Undersecretary Ceferino Rodolfo said the country is able to ensure strategic goods trade is used for legitimate purposes only and not diverted to WMD proliferators.

He added “the Philippines’ strong improvement in the PPI ranking is likely to boost the country’s image as a secure investment location for the manufacture and export of strategic goods.”