The Philippines’ growth model depends on trade openness but faces three key constraints: tariff policy, logistics inefficiencies, and global trade uncertainty (Castillo, 2025; Aldaba, 2025; UNCTAD, 2024). While low tariffs support competitiveness by reducing input costs, logistics bottlenecks and external shocks increase trade costs and undermine these gains (Castillo, 2025; World Bank, 2023).
This brief argues that sustaining competitiveness and resilience requires coordinated reforms across these areas. Maintaining low and predictable tariffs, improving logistics performance, and diversifying export markets must be pursued together to reduce trade costs and manage external risks.