Philippines Establishes Panel to Probe Forced Labor in Imported Goods

The Philippine government has established an inter-agency committee to investigate and disallow imports that were made with forced labor. The committee will be chaired by the Department of Trade and Industry, with the Department of Labor and Employment as vice-chair, with the involvement of the Department of Finance (DoF), according to a joint administrative order (JAO) signed by the department on Thursday. The Bureau of Customs (BoC), Board of Investments, and Philippine Economic Zone Authority will also serve as members of the inter-agency committee, it said. The committee will receive, evaluate, and investigate complaints relating to imported goods suspected of having been produced through forced labor. They are also empowered to issue recommendations based on their findings. The Philippines is at risk of additional tariffs from the US after the US Trade Representative concluded that it has not done enough to curb imports of goods made with forced labor. Philippine-made goods entering the US are currently subject to a 10% baseline tariff after the US Supreme Court in February struck down US President Donald J. Trump’s tariffs, which invoked the International Emergency Economic Powers Act. According to the DoF, the JAO provides a mechanism for addressing concerns involving products suspected of having been produced wholly or in part through forced labor. “As the Philippines becomes more deeply connected to global value chains, responsible business conduct, ethical sourcing and supply chain transparency are important,” Trade Secretary Maria Cristina A. Roque said during the signing ceremony. The Philippines is seeking to ensure that its trade practices follow internationally recognized labor standards, as trading partners focus on ethical sourcing, transparent supply chains, and responsible business conduct. “By prohibiting imports of goods produced through forced labor, the country strengthens confidence in the integrity of its supply chains, promotes fair and responsible business practices, and demonstrates its commitment to sustainable economic growth founded on ethical trade,” the DoF said. According to the JAO, the BoC will have the power to bar the entry of goods found to have been produced using forced labor. “We are embarking on this because we believe that this will be beneficial for the Philippines, as a matter of principle, being a signatory to ILO (International Labour Organization) conventions. We have to abide by that,” Trade Undersecretary Ceferino S. Rodolfo told reporters on the sidelines of an event on Wednesday. — Beatriz Marie D. Cruz Information source: BusinessWorld Economy