1. Trade-Led Growth:
International trade remained a key driver of the Philippine economy, with trade
in goods and services accounting for over
60% of GDP during 2018–2025.
2. Employment and Poverty Reduction:
o Workers in export-oriented sectors earned
at least 50% higher wages
than the national average in 2024.
o The middle class expanded to over 40% of the population.
o Poverty declined from 26.3% (2015) to 15.5% (2023).
3. High Trade Costs: Trade
costs remain about 20%
higher than the ASEAN average, mainly due to inadequate
infrastructure and regulatory inefficiencies. Logistics account for about 27% of retail prices.
4. Economic Growth: Real
GDP grew at an average annual rate of about 5% during the review period. GDP per capita
increased from USD 3,280
(2018) to USD
4,279 (2025), approaching upper-middle-income status.
5. Infrastructure Investment:
Growth has been supported by increased investment in connectivity
infrastructure under the "Build
Better More" Programme, with capital expenditure targeted
at 5–6% of GDP annually
(2022–2028).
6. Dominant Sector:
Services contributed 63%
of GDP and 45%
of total exports in 2025.
7. IT-BPM Growth:
Services exports reached USD
51.6 billion in 2024, driven mainly by the Information Technology–Business Process
Management (IT-BPM) sector.
8. Artificial Intelligence Impact:
o Around 36% of BPM jobs are potentially vulnerable
to AI automation.
o However, AI has largely complemented
rather than replaced workers.
o AI adoption increased BPO revenues by up
to 150%.
9. Remittances:
Personal remittances from overseas Filipino workers amounted to 8.5% of GDP in 2025,
making them the second-largest source of services export earnings.
10. Export Performance:
Merchandise exports grew by 8%
during the review period and reached USD
83.8 billion in 2025, registering 15.2% annual growth,
partly due to AI-driven global demand.
11. Semiconductor Hub:
·
Around
48% of merchandise exports
are linked to global value chains.
·
The
Philippines accounts for about 10%
of global semiconductor testing and packaging output.
·
Over 60% of goods exports are
products covered under the Information
Technology Agreement (ITA).
12. Major Export Markets:
·
United
States remains the largest export destination.
·
Strong
trade links with China, Hong Kong (China), Japan, Republic of Korea and Chinese
Taipei.
13. Philippine Development Plan (2023–2028): The
Plan focuses on:
·
Export
promotion.
·
Foreign
investment.
·
Skill
development.
·
Trade
cost reduction.
14. Regional Trade Agreements: By
end-2025, the Philippines was a party to 12
RTAs, including five
new agreements concluded during the review period.
15. Investment Liberalisation:
·
Foreign
equity restrictions were relaxed in most infrastructure sectors.
·
Public-Private
Partnership (PPP) framework was overhauled in 2023.
·
Green
Lane units were created to fast-track strategic investments.
16. Business Reforms:
·
Tacit
approval mechanism introduced for permits.
·
Inter-Agency
Investment Promotion Coordination Committee (IIPCC) established to facilitate
investment while screening strategic investments.
17. MSME Support:
·
MSMEs
account for 99% of
businesses.
·
Government
enhanced fiscal incentives.
·
Domestic
supplier preference increased from 15%
to 25%.
·
Export
guarantee schemes expanded.
18. Rice Import Liberalisation:
·
Quantitative
restrictions on rice imports abolished.
·
MFN
tariff reduced from 50% to
35%, then to 15%.
·
From
January 2026, tariffs vary between 15%
and 35% based on international prices.
19. Customs Modernisation:
·
Participation
in the ASEAN Single Window.
·
Electronic
submission of import/export declarations.
·
Expanded
Authorized Economic
Operator (AEO) programme.
·
Customs–Industry
Consultative Council formalised in 2024.
20. Tariff Structure:
·
64% of
tariff lines are WTO-bound.
·
Average
applied MFN tariff declined from 7.6%
(2018) to 6.5%
(2026).
21. Trade Regulation:
·
Around
33% of tariff lines
require licences or approvals.
·
Philippine
National Trade Repository provides regulatory information.
22. Export Support:
·
No
export subsidies during 2018–2025.
·
State
export guarantees consolidated under PhilGuarantee.
23. Corporate Tax Reform:
·
Corporate
income tax reduced to 25%
under the CREATE Act
(2021).
·
CREATE
MORE Act (2024) improved predictability of fiscal
incentives.
24. Government Procurement:
·
New
Government Procurement Act (2024) introduced.
·
Shift
from lowest-price selection to most
economically advantageous bid, considering lifecycle costs and
quality.
25. Innovation Promotion:
·
National
Innovation Strategy launched.
·
Innovation
Fund supported 59 projects
by end-2025.
·
Domestic
patent registrations doubled during the review period.
26. Agriculture:
·
Philippines
remains a net agricultural importer.
·
Productivity
constrained by fragmented landholdings and climate risks.
·
Ratified
the WTO Agreement on
Fisheries Subsidies in 2023.
27. Manufacturing:
·
Electronics
remain the leading export industry.
·
Food
processing, chemicals and electronics dominate manufacturing output.
·
Supply-chain
and financing constraints continue to affect productivity.
28. Energy:
·
Fossil
fuels account for about 70%
of primary energy supply.
·
Restrictions
on foreign investment in most renewable energy projects removed in 2022.
·
Policies
promote renewable energy, energy efficiency and low-carbon technologies.
29. Financial Services:
·
Rapid
growth in digital payments and mobile banking.
·
Digital
banking framework introduced.
·
Continued
focus on financial inclusion and cybersecurity.
30. Telecommunications:
·
Konektadong Pinoy
Act (2024) modernised telecom regulation.
·
Created
Data Transmission Industry
Participants (DTIPs).
·
Simplified
satellite broadband and infrastructure-sharing rules.
31. Aviation Liberalisation:
·
Foreign
ownership in domestic airlines allowed up to 100% following amendments to the Public
Service Act.
·
Private
and foreign participation in airport operations increased through PPPs.
32. The WTO recommends that the Philippines
continue reforms by:
·
Strengthening
the National Single Window.
·
Establishing
non-preferential rules of origin.
·
Reviving
the Unified Logistic Pass initiative.
·
Further
reducing trade costs.
·
Enhancing
competition and investment.
·
Maximising
the benefits of international trade.
·
Review
Period: 2018–2025
·
Trade-to-GDP
Ratio: Over 60%
·
Average
GDP Growth: ~5%
·
GDP
per Capita (2025): USD
4,279
·
Services
Share of GDP: 63%
·
Services
Exports (2024): USD
51.6 billion
·
Merchandise
Exports (2025): USD
83.8 billion
·
ITA
Products: Over 60% of goods exports
·
Semiconductor
ATP Share: ~10%
of global output
·
Applied
MFN Tariff (2026): 6.5%
·
RTAs: 12 (including five new
agreements)
·
Corporate
Tax Rate: 25%
·
Renewable
Energy Policy: Foreign investment liberalised in most
renewable energy sectors.
[ABS News Service/26.06.2026]
Trade Policy Review of
Philippines
The
sixth review of the trade policies and practices of the Philippines takes place
on 24 and 26 June 2026. The basis for the review is a report by the WTO
Secretariat and a report by the Government of the Philippines.
The
following documents are available:
Secretariat report
A
detailed report written independently by the WTO Secretariat.
Government report
A
policy statement by the government of the member under review.
Concluding remarks
Chairperson's
concluding remarks (available the day of the second meeting)
From
the meeting
The
Secretariat and Government reports are discussed by the WTO’s full membership
in the Trade Policy Review Body (TPRB).
Background
Trade
Policy Reviews are a WTO transparency exercise in which members' trade and
related policies and practices are examined at regular intervals. They allow
WTO members to ask questions, exchange views, and comment on each other's
policies in collective discussions held in the WTO's Trade Policy Review Body.
All
WTO members are subject to review. The frequency of each review depends on the
member's share of world trade, with the largest traders being reviewed more
frequently.