DTI, DOLE, DOF set rules vs. forced labor imports after US tariff hike

The Department of Trade and Industry (DTI), Department of Labor and Employment (DOLE), and Department of Finance (DOF) on Friday teamed up to establish a framework to curb the importation of goods produced with forced labor.

This development came after the Office of the United States Trade Representative (USTR) announced that Philippine goods entering the US will be slapped with 12.5% tariffs after the country failed to impose and effectively enforce the prohibition of imports made by forced labor following its months-long probe into dozens of trading partners.

The Trump administration imposed new tariffs of 10% and 12.5% on goods from 60 trading partners, including the European Union and China, over allegations of lax enforcement of forced labor bans, just as a temporary 10% global tariff expired.

The new tariffs, announced on Thursday in a Federal Register notice, cover 99.4% of US imports, but include numerous product exemptions, such as oil and gas, fertilizer and certain food items.

In a statement, the DTI said it signed a Joint Administrative Order (JAO) with DOF and DOLE, establishing the rules for the investigation and prohibition of the importation of goods produced wholly or in part through forced labor, “reinforcing the Philippines’ commitment to responsible trade, workers’ rights, and fair competition.”

The Trade Department said the JAO creates an Inter-Agency Committee chaired by the DTI, with the DOLE as Vice-Chair and the DOF, Bureau of Customs (BOC), Board of Investments (BOI), and Philippine Economic Zone Authority (PEZA) as members.

It said the committee will receive, evaluate, and investigate complaints and information relating to imported goods suspected of having been produced through forced labor and recommend appropriate action to the relevant authorities.

"As businesses and consumers place greater value on ethical sourcing and transparent supply chains, the Philippines must ensure that our market supports responsible business conduct," Trade Secretary Cristina Roque said.

"By prohibiting the entry of goods produced through forced labor, we reinforce confidence in our supply chains, promote fair competition, and signal to investors and trading partners that the Philippines is committed to sustainable and values-driven growth," she added.

Labor Secretary Francis Tolentino added that “no worker should suffer exploitation for goods to become cheaper or more competitive.”

“This JAO helps ensure that Filipino workers and enterprises are not disadvantaged by imported products produced through forced labor. It demonstrates how trade policy can support labor protection, uphold human dignity, and create a level playing field for businesses that comply with fair labor standards," Tolentino said.

Finance Secretary Frederick Go likewise said that through the Bureau of Customs (BOC) and close coordination with partner agencies, “we will ensure that credible findings of forced labor are translated into appropriate enforcement action.”

“This JAO strengthens our ability to safeguard the Philippine market from goods that do not meet the standards we uphold as a nation," Go said.

Under the JAO, the Bureau of Customs will act on the findings and recommendations of the Inter-Agency Committee and implement measures to prohibit the importation of goods determined to have been produced wholly or in part through forced labor.
The DTI further said the JAO aligns with the Philippines’ obligations under international labor conventions and establishes a coordinated mechanism for investigation, information-sharing, and enforcement against imported goods suspected of being produced through forced labor. –NB, GMA News