The Philippines should establish a mechanism to verify that manufacturing inputs used in its exports are not sourced from countries suspected of using forced labor, the Philippine Chamber of Commerce and Industry (PCCI) said, in order to avoid the 12.5% US tariff, according to a report by BusinessWorld.
PCCI officials emphasized the need for a transparent process that can certify the absence of forced labor in supply chains, particularly for exports to the US. The call comes amid tightening US trade policies that penalize imports linked to forced labor practices.
The absence of such a verification mechanism could put Philippine exports at a competitive disadvantage, the PCCI warned. Industry stakeholders are urged to collaborate with government agencies to develop standards that align with international trade requirements.