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Trade & Industry
European businesses push ASEAN, Philippines to crack down on illicit trade
European businesses push ASEAN, Philippines to crack down on illicit trade
The regional business council representing European businesses in the Association of Southeast Asian Nations (ASEAN) has urged the region, particularly the Philippines, to take a more united stance against illicit trade to uphold confidence in cross-border exchanges and investments.
In a February report, the European Union-ASEAN Business Council (EU-ABC) observed that illicit trade remains a persistent challenge in the region, posing a significant economic risk to the development of member countries.
In the region, illicit trade is particularly pronounced in consumer goods, pharmaceuticals, alcohol, agricultural products, fuel, and tobacco.
EU-ABC said the proliferation of fraudulent goods undermines fiscal sustainability, legitimate commerce, consumer protection, and confidence in the region’s supply chains.
Apart from economic losses, EU-ABC executive director Chris Humphrey said illicit trade also makes communities more vulnerable to health and safety risks and environmental harm, among others.
To this end, Humphrey said the Philippines is well-placed to lead the charge in changing this status quo by incorporating the fight against illicit trade into its priority economic deliverables (PEDs) as host of this year’s ASEAN Summit.
Among the country’s PEDs for the year is fostering strategic trade management, digital transformation, and enhancing trade and investment linkages within ASEAN.
“Strengthening ASEAN’s collective capacity to prevent illicit trade supports—not distracts from—these objectives,” the report read.
EU-ABC recommended that the Philippines lead the adoption of licensing and oversight frameworks to promote a transparent supply chain within ASEAN.
The council also said that ASEAN should pursue greater legal alignment by treating large-scale illicit trade as a serious economic offense while improving intellectual property enforcement.
On the digital front, EU-ABC said the region could step up measures against illicit trade by improving data-sharing among customs authorities and exploring advanced analytics to support risk-based targeting.
Likewise, it urged greater interoperability with the ASEAN Single Window (ASW) to facilitate the secure electronic exchange of trade-related documents.
Since illicit trade risks vary from one product to another, EU-ABC said common regulatory principles should be developed instead of uniform rules to support enforcement consistency while respecting sectoral differences.
It also called for increased structured collaboration with the private sector to further strengthen supply chain integrity.
“If implemented in full, these strategies are expected to improve fiscal outcomes, strengthen supply chains and investor confidence, enhance coordination and enforcement, and support the success of the Philippines’ 2026 PEDs,” EU-ABC said.
The council said it has submitted its recommendations to key government institutions such as the Department of Trade and Industry (DTI), the Department of Finance (DOF), and the Bangko Sentral ng Pilipinas (BSP) as part of its coordination with the Philippine government.