The World Trade Organization has flagged the Philippines for its high trade costs, according to a report by BusinessWorld Online. The WTO’s Trade Cost Index indicates that the Philippines faces higher costs compared to regional peers, driven by inefficiencies in logistics and regulatory processes.
The report highlights that trade costs in the Philippines are equivalent to a high tariff on traded goods, discouraging both imports and exports. Factors include poor infrastructure, complex customs procedures, and limited digitalization in trade facilitation. These barriers disproportionately affect small and medium enterprises.
Analysts suggest that the Philippines must invest in trade-enabling infrastructure and streamline bureaucratic processes to lower costs. The WTO recommends adopting international best practices in customs automation and logistics management to improve the country’s competitiveness in global trade.