Palace reviewing USTR report, says gov’t ready to prove stance against forced labor

MALACAÑANG on Monday said the government is seriously addressing a US Trade Representative (USTR) report that proposed additional tariff after it found the Philippines failed to enforce measures to restrict imports produced with forced labor.

“The government is seriously addressing this issue, emphasizing its longstanding stance against forced labor and the existing laws prohibiting it,” Palace Press Officer Clarissa A. Castro told a briefing in Filipino.

“The USTR report is currently being reviewed, and coordination with US officials will be undertaken in the proper manner. Thus, we can assert that we are not violating the law and that we condemn forced labor.”

The proposed 12.5% levy is tied to a broader Section 301 investigation initiated in March which scrutinized whether various trading partners have effectively prohibited and policed the importation of goods produced — wholly or in part — with forced labor.

The Executive branch is currently evaluating its options for formal coordination with US officials while maintaining that the country continues to condemn human trafficking and labor abuses, according to Ms. Castro.

She noted among the considerations include the deployment of a government team to the United States to address concerns raised by the USTR.

“That is what can be done and it is currently being analyzed to determine the necessary actions to prove that we have no violations regarding activities related to forced labor,” she said when asked if the administration intends to dispatch a formal delegation to the United States to address the issue.

The USTR’s report places the Philippines among a group of economies that allegedly failed to impose and enforce a forced labor import prohibition, a move the US claims burdens American commerce and creates an unlevel playing field for US workers.

Ms. Castro said that the government is prepared to defend the country’s record by demonstrating that no violations were committed in order to prevent the imposition of the proposed tariffs. 

Trade officials and industry stakeholders, including the Philippine Exporters Confederation, Inc., have urged the government to engage in constructive dialogue with US authorities to highlight the country’s existing labor protection frameworks and to request specific details on the alleged violations to ensure that compliant exporters are not unfairly penalized by a blanket tariff approach. — Erika Mae P. Sinaking