Strategic exports – information security systems, equipment, and components used for defense and security – surged to $4.5 billion in 2021 from $3.6 million in 2020, the Department of Trade and Industry (DTI) said in a statement.
It was only in 2019 when the Strategic Trade Management Office started accepting applications for the registration of firms that intend to engage in cross-border strategic goods trade. It began accepting applications for authorization to export dual-use goods in July 2020.
Under Republic Act No. 10697 or Strategic Trade Management Act (STMA), strategic goods are defined as products that, for security reasons or due to international agreements, considered to be of such military importance that their export is either prohibited altogether or subject to specific conditions.
Exports of information security systems, equipment, and components account for 98 percent of the overall value, with semiconductors and integrated circuits occupying the remaining 2 percent.
The United States is the top country of destination in terms of strategic goods exports, accounting for 60 of the total value which is followed by Japan (21 percent), Singapore (5 percent), South Korea (4 percent), and China (3 percent).
“We have been able to leverage our strategic trade regulatory regime to convince more manufacturers to engage in strategic goods export. This is in line with the StTMA’s mandate of promoting economic growth by facilitating trade and investment in strategic goods while also meeting the country’s international obligations to implement effective measures aimed at preventing the proliferation of weapons of mass destruction and their delivery systems,” said DTI Secretary Ramon Lopez.
The Philippines was named the most improved country in the implementation of Strategic Trade Controls as stated in the 2021/2022 Peddling Peril Index , with the country moving from 86th to 49th position in 2021. The report assesses 200 nations based on their strategic trade control adoption, implementation, and enforcement.