EXPORTS of strategic goods, which are regulated for national security reasons, were worth $4.5 billion in 2021, much higher than the $3.6 million registered a year earlier, with the US the leading destination, the Department of Trade and Industry (DTI) said.
In a statement on Monday, the DTI said the exports were tracked by Strategic Trade Management Office (STMO) from reports submitted by exporters.
The low 2020 total reflects the recent launch of the regulatory process, which started in October 2019 when the STMO started registering companies intending to export strategic goods. The STMO also started registering dual-use goods — unregulated exports whose alternative uses have national security implications — only in July 2020.
Information security systems, equipment, and components accounted for 98% of the total in 2021, while semiconductors and integrated circuits made up the remainder.
“The United States is the top country of destination in terms of strategic goods exports, accounting for 60% of the total value, followed by Japan (21%), Singapore (5%), South Korea (4%), and China (3%),” the DTI said.
The DTI defines strategic goods as products “that, for security reasons or due to international agreements, (are) considered to be of such military importance that their export is either prohibited altogether or subject to specific conditions.” Their export is governed by Republic Act No. 10697, or the Strategic Trade Management Act.
“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 coronavirus disease 2019 (COVID-19) pandemic and the preventive measures implemented to contain it,” Trade Undersecretary Ceferino S. Rodolfo said.
Trade Secretary Ramon M. Lopez said the export of strategic goods, as regulated by the Strategic Trade Management Act, has the potential to stimulate economic growth.
“This is in line with the Strategic Trade Management Act’s mandate of promoting economic growth by facilitating trade and investment in strategic goods while also meeting the country’s international obligations to implement effective measures aimed at preventing the proliferation of weapons of mass destruction and their delivery systems,” Mr. Lopez said.
The DTI also disclosed that intangible transfers of technology — a subset of strategic goods — generated $650,000 worth of new investments in 2021.
“This includes nuclear energy contracts won by business process outsourcing companies which provide services to firms and corporations in other countries,” the DTI said.
The STMO has issued 13 export authorizations and registered 46 companies involved in the cross-border trade of strategic goods. — Revin Mikhael D. Ochave
