THE Philippines is the most improved country in terms of strategic trade control implementation, jumping to 49th rank this year from 86th place in 2020 based on the 2021/2022 Peddling Peril Index (PPI).
In a statement on Sunday, the Department of Trade and Industry (DTI) noted that the country scored 482 points in the latest report, higher than 273 points it garnered previously.
“PPI rates 200 nations based on their strategic trade control adoption and implementation, with the goal of assisting countries in strengthening their systems by examining the degree of their implementation and enforcement, as well as tracking their progress over time,” DTI Secretary Ramon Lopez said.
DTI defined strategic goods as “items with civilian and military applications,” noting that many of them “can be used as materials or parts of weapons of mass destruction [WMD].”
Several nations are implementing strategic trade control laws in compliance with international pacts to prevent proliferation of WMDs. For its part, the DTI said the Philippines enacted the Strategic Trade Management Act.
Among the five super criteria under the PPI, the Philippines saw the biggest improvement in ability to prevent proliferation financing. Score for this pillar rose to 113 from 29.
The trade department said the better performance was due to the issuance by the Strategic Trade Management Office of guidelines to comply with the requirements of the Financial Action Task Force (FATF) regarding the implementation of financing and brokering.
In addition, the DTI said the Anti-Money Laundering Council also released targeted financial sanctions related to the proliferation of WMD and proliferation financing earlier this year.
For adequacy of enforcement, its score increased to 282 from 109. Ability to monitor and detect strategic trade was better at 129 points from 102 points previously.
However, the country saw a slight drop in international commitment to 58 points and legislation to 174 points.
Still, the DTI noted that the “Philippines achieved more than 50 percent of the total possible points in four super criteria: 87 percent [174 out of 200] in legislation, 71 percent [282 out of 400] inadequacy of enforcement, 65 percent [129 out of 200] inability to monitor and detect strategic trade, and 58 percent [58 out of 100] in international commitment.”
DTI Undersecretary Ceferino Rodolfo said the country’s strategic trade control legislation allows it to ensure that strategic goods are used only for legitimate purposes.
“The Philippines’s strong improvement in the PPI ranking is likely to boost the country’s image as a secure investment location for the manufacture and export of strategic goods,” he added.
The PPI is conducted by the non-profit organization Institute for Science and International Security.