PHILEXPORT

PHILEXPORT statement on the new U.S. tariffs on products made through forced labor
June 3, 2026

The Philippine Exporters Confederation, Inc. (PHILEXPORT) has expressed grave concern over the proposal by the Office of the United States Trade Representative (USTR) to impose additional duties of up to 12.5 percent on products from economies that it found lacking in the prohibition and enforcement against the import of goods produced through forced labor.

Based on Section 301 of the Trade Act of 1974, the USTR has identified 60 economies including the Philippines that it claimed to have failed to impose and effectively enforce a prohibition on the importation of goods produced with forced labor.

PHILEXPORT President Sergio R. Ortiz-Luis Jr. has affirmed that there is no such practice among its individual and organization members, noting that Philippine exporters are implementing responsible sourcing, transparency, and compliance with labor standards demanded by global markets.

“We urge the USTR to engage in constructive dialogue with Philippine authorities and the private sector to better appreciate the reforms already undertaken and the continuing measures being implemented,” he said.

Philippine laws strictly prohibit forced labor, slavery, involuntary servitude, and human trafficking. These measures include Republic Act No. 9208 or the Anti-Trafficking in Persons Act, as amended by Republic Acts No. 10364 and No. 11862, as well as Republic Act No. 10361 or the Domestic Workers Act. Violations are imposed severe penalties, including long-term imprisonment and substantial fines, particularly when involving minors or are committed by organized groups.

The Philippines has further strengthened its stance against forced labor through adherence to key International Labour Organization standards, including Convention No. 105 on the Abolition of Forced Labour, and more recently Convention No. 190 on violence and harassment in the world of work. The country is also working toward ratifying the 2014 Protocol to the Forced Labour Convention, which further strengthens measures to prevent forced labor and protect victims.

Ortiz-Luis likewise urged the Philippine government to continue to actively engage with U.S. trade authorities on the country’s labor enforcement framework and demonstrate ongoing compliance efforts.

Negotiators also need to emphasize that the Philippines is the U.S.’s best ally in the region. However, we are not in the position to determine which products and country the violations are coming from. For this reason, the U.S. needs to share specific details on such cases so we are not working blindly, Ortiz-Luis said.

“A blanket tariff approach risks penalizing compliant exporters and workers while overlooking the substantial reforms already undertaken by the Philippines”, he said. “PHILEXPORT remains committed to supporting initiatives that uphold workers’ rights, strengthen supply chain integrity, preserve market access, and foster a fair, rules-based international trading environment.”

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