The Philippines is assessed as a moderately high-risk jurisdiction for illicit trade. Its exposure is shaped by a large informal economy, an extensive and difficult-to-police maritime geography, persistent corruption risks and significant criminal activity across counterfeit goods, illicit tobacco, pharmaceuticals and environmental markets. Informal economic output is estimated at almost 40% of GDP, reducing regulatory visibility and creating established channels through which illicit goods circulate.

Snapshot of Philippines

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A concise overview of the Philippines' exposure to illicit trade, drawing on findings from the TRACIT Illicit Trade Index. Strongest area: Regulatory Framework and Enforcement. Weakest area: Sectoral Illicit Trade Indicators. Key vulnerabilities include critically weak supply chain oversight, enforcement gaps enabling criminal activity, and a large informal economy and embedded corruption. Sectors most affected: illicit tobacco, illicit alcohol, counterfeit goods, and illicit medicines.

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Publications

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Assessing ASEAN's Performance on the Illicit Trade Index​ (November 2026)

TRACIT's regional report adapts the 2025 Illicit Trade Index to the ten ASEAN countries to assess the region's performance.
The Philippines scores 51.1 out of 100, ranking 72nd of 158 countries globally and 5th in ASEAN, above the regional average of 49.7.
Comparatively strong regulatory institutions and customs tools are offset by criminal activity, gaps in supply chain controls and the scale of illicit markets in counterfeit goods, tobacco, pharmaceuticals, alcohol and environmental products, sustained by porous maritime routes and informal channels.
The report recommends improving the consistency and transparency of IP case handling, reducing rights holder costs in criminal IP enforcement, moving from takedown only enforcement to repeat offender disruption, and strengthening customs integrity and anti corruption safeguards.

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Read the X chapter: LINK

Fighting Fakes, Contraband and Illicit Trade: Spotlight on The Philippines (November 2023)

The report Fighting Fakes, Contraband and Illicit Trade: Spotlight on the Philippines assesses the nature and extent of illicit trade in the Philippines. It evaluates its impact on both the economy and society, analyzes the government's ongoing initiatives to tackle the issue, and puts forward practical recommendations for effective solutions. The report is designed to empower stakeholders in their efforts to combat illicit trade, ultimately contributing to the creation of a more secure and prosperous Philippines.

Featured Event

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TRACIT presents report to IPOPHL's Intellectual Property Enforcement Summit

15 November 2023, Manila - TRACIT and the Intellectual Property Office of the Philippines (IPOPHL)  solidified their commitment to combat counterfeit and piracy through a Memorandum of Understanding (MoU) signed during the 2023 Intellectual Property Enforcement Summit in Manila. The agreement establishes a framework for cooperation between the two organizations in the domain of IPR protection and enforcement. During the IP Summit TRACIT presented its report, "Fighting Fakes, Contraband and Illicit Trade: Spotlight on the Philippines," providing valuable insights into the nature and extent of illicit trade in the country. More...


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Media Center

Supporting materials

• ​TRACIT Media Release: [title of the release]. [date].​​​​
• TRACIT Media Release: TRACIT and the Intellectual Property Office of the Philippines partner to address counterfeiting and piracy. November 2023.
• ​Full report: Fighting Fakes, Contraband and Illicit Trade: spotlight on the Philippines ​​