The Philippine government has pushed back against a United States (US) probe, asserting that its labor and trade policies neither enable forced labor nor disadvantage American businesses.

In an April 14 position paper seen by Manila Bulletin, Department of Trade and Industry (DTI) Undersecretary Allan B. Gepty said the Philippines maintains “a strong legal regime against forced labor” and that its current framework is not discriminatory and does not burden US commerce.

The submission responds to the Office of the US Trade Representative’s (USTR) Section 301 investigation into economies that allegedly fail to prohibit the importation of goods produced with forced labor.

The USTR earlier warned that the absence of such import bans could allow firms to profit from forced labor-linked products and create unfair competition that may harm US trade.

In its response, the Philippines pointed to its constitutional and legal safeguards prohibiting forced labor, anchored on the 1987 Constitution’s provision banning involuntary servitude, as well as laws addressing human trafficking, child labor, and workplace safety.

The government said these measures are reinforced by its commitments under international agreements, including conventions of the International Labor Organization (ILO), as well as its participation in regional and multilateral initiatives such as Association of Southeast Asian Nations (ASEAN) cooperation frameworks and the Indo-Pacific Economic Framework (IPEF).

It added that enforcement is carried out by agencies such as the Department of Labor and Employment (DOLE), the Inter-Agency Council Against Trafficking (IACAT), and the Bureau of Customs (BOC), which oversee labor standards compliance, anti-trafficking efforts, and import regulation.

The Philippines also cited its Tier 1 standing in the US State Department’s 2025 Trafficking in Persons report, which it has maintained for 10 consecutive years.

Addressing concerns raised by Washington, Manila said its trade regime is based on non-discrimination and fair competition, consistent with its obligations under the World Trade Organization (WTO) and various free trade agreements (FTAs).

It stressed that there has been no proven case of Philippine exports to the US being produced through forced labor, and that there is no pattern of conduct in the country that permits such practices.

The position paper also said there is no evidence that Philippine policies have caused harm to US commerce, noting the absence of indicators such as lost exports, reduced output, or downward pressure on wages linked to Philippine trade practices.

While the Philippines does not currently have an explicit statutory ban on the import of goods produced with forced labor, the government said this should not be interpreted as tolerance of such practices.

Instead, it said efforts are underway to strengthen regulatory frameworks, including possible legislative and policy measures to enhance enforcement.

The Philippines also signaled openness to further tightening its customs regime, including adopting product-specific and evidence-based import restrictions targeting high-risk sectors.

The USTR probe, which covers several economies including the Philippines, forms part of broader efforts by the US to address forced labor in global supply chains under Section 301 of its trade law.

In its submission, the Philippines reiterated its commitment to protecting workers’ rights, promoting fair and rules-based trade, and continuing engagement with the US on labor and trade issues.