- Strategic goods export authorizations issued by the Department of Trade and Industry’s Strategic Trade Management Office in 2021 generated $4.5 billion in revenues, a whopping 124,900% jump from the $3.6 million recorded in 2020
- Exports of information security systems, equipment, and components accounted for 98% of the overall value, while semiconductors and integrated circuits made up 2%
- The US was the top destination of strategic goods exports, accounting for 60% of the total value, followed by Japan, Singapore, South Korea, and China
- Intangible transfers of technology that is a subset of strategic goods generated $650,000 worth of new investments in 2021
Strategic goods export authorizations issued by the Department of Trade and Industry’s Strategic Trade Management Office in 2021 generated $4.5 billion in revenues, a whopping 124,900% jump from the $3.6 million recorded in 2020.
Exports of information security systems, equipment, and components accounted for 98% of the overall value, while semiconductors and integrated circuits made up the remaining 2%, DTI said in a statement.
The US was the top destination of strategic goods exports, accounting for 60% of the total value, followed by Japan (21%), Singapore (5%), South Korea (4%), and China (3%).
Additionally, intangible transfers of technology that is a subset of strategic goods generated $650,000 worth of new investments in 2021. These include nuclear energy contracts won by business process outsourcing companies that provide services to firms and corporations in other countries.
Trade Undersecretary Ceferino Rodolfo said “increased confidence in the Philippines as a safe and secure investment location for strategic goods manufacture and cross-border trade is reflected in the surge of strategic goods exports.
“This is excellent news, especially considering the economic downturn brought by the COVID-19 pandemic and the preventive measures implemented to contain it. We value the confidence that investors have placed upon us because this will pave the way for the full economic recovery of the country.”
The Philippines has been named the most improved country in implementing strategic trade controls in the 2021/2022 Peddling Peril Index, with the country moving from 86th to 49th position in 2021. The report assessed 200 nations based on their adoption, implementation and enforcement of strategic trade controls.
Strategic goods are items with civilian and military applications that can be used as materials or parts of weapons of mass destruction (WMDs). Various countries have enacted strategic trade control laws in compliance with their obligation in numerous treaties and international agreements to prevent the proliferation of WMDs.
The Philippines enacted Republic Act No. 10697, also known as the Strategic Trade Management Act (STMA), in 2015.
The STMA complies with the United Nations Security Council Resolution No. 1540, which “imposes binding obligations on all states to adopt legislation to prevent the proliferation of nuclear, chemical and biological weapons, and their means of delivery, and establish appropriate domestic controls over related materials to prevent their illicit trafficking.”
STMO serves as the executive and technical agency of the government in establishing the management systems for trade in strategic goods pursuant to the STMA.
In October 2019, the STMO began accepting applications for the registration of firms that intend to engage in cross-border strategic goods trade. Likewise, it began accepting applications for authorization to export dual-use goods in July 2020.
READ: STMO sets guidelines on registration for export of strategic goods
To date, STMO has issued 13 export authorizations and registered 46 companies that intend to engage in or are engaged in cross-border trade of strategic goods.
