EU-ABC report urges stronger ASEAN action on illicit trade under Philippines’ Chairship

The report argues that prevention should be considered an economic priority under the Philippines’ Chairship, warning that rising illicit trade could jeopardise development across areas such as trade and investment integration, supply chain resilience, and sustainable growth. The report, which has been submitted to the Philippines government and ASEAN secretariat, stresses that ASEAN now has an opportunity to strengthen collective action under the Philippines’ Chairship, given its focus on cooperation and securing regional trade. It also offers a practical roadmap for strengthening coordination mechanisms, enhancing policy coherence, and leveraging tech-driven tools to combat the issue.

“Illicit trade comes with huge costs for the region. Economic loss aside, communities suffer from health and safety risks, environmental harm, organised crime enabled by illicit trade, and worst of all, the loss of human lives. It must be met with a firm and coordinated response. The Philippines is well-placed to lead this charge, and we are confident our report will prove useful in ASEAN’s fight against illicit trade,” said EU-ABC Executive Director Chris Humphrey.

The report’s recommendations are designed to supplement several Priority Economic Deliverables (PEDs)—key economic objectives for the Philippines’ Chairship—and promote improved outcomes within existing parameters, rather than introduce new objectives that could dilute focus. The report also examines how the Philippines’ experience in implementing national reforms could be applied at the ASEAN level.

The report puts forward five main recommendations:

• Strengthen institutional coordination through a consolidated platform for intelligence sharing, joint action, commitment implementation and public-private engagement
• Align policy and regulatory frameworks across ASEAN Member States in licensing and supply chain oversight, risk-based pre-export assurance and shipment control, and other key areas
• Leverage digital tools to improve intelligence sharing and risk management across customs authorities
• Develop common regulatory principles that can be applied in sector-specific ways rather than uniform rules
• Increase structured collaboration with the private sector and key Dialogue Partners to strengthen supply chain integrity

If implemented in full, these strategies are expected to improve fiscal outcomes, strengthen supply chains and investor confidence, enhance coordination and enforcement, and support the success of the Philippines’ 2026 PEDs.

Mr Humphrey said: “This is the moment for ASEAN to turn economic risk into opportunity. The Philippines has always been a strong champion of cooperation and constructive dialogue, and we look forward to working closely with them towards a stronger, more resilient ASEAN.”

The full report, titled “Driving ASEAN Action Against Illicit Trade: A Strategic, PED-aligned Blueprint for the Philippines’ 2026 ASEAN Chairship”, can be viewed here.