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PHL MAKES 3RD EXIT FROM DIRTY-MONEY HUBS LIST www.businessmirror.com.ph
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Wednesday, August 20, 2025 Vol. 20 No. 311
P25.00 nationwide | 2 sections 22 pages | 7 DAYS A WEEK
By Cai U. Ordinario
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@caiordinario
HE Philippines has been removed from the European Union’s (EU) list of high-risk third countries on 10 June 2025—its third exit this year, according to the Bangko Sentral ng Pilipinas (BSP).
In its decision, the EU cited improved effectiveness in the country’s anti-money laundering/countering the financing of terrorism regime and resolution of technical deficiencies identified by the Financial Action Task Force (FATF). BSP Governor Eli M. Remolona said even with this latest development, the central bank remains committed to continue its fight with financial crimes and uphold global standards. “The BSP remains firmly committed to driving financial sector reforms, strengthening AML/CTPF supervision (antimoney laundering/ countering terrorism and proliferation financing), and building a resilient, inclusive financial system that supports economic growth and global confidence,” Remolona said. The BSP Governor, who also chairs the Anti-Money Laundering Council (AMLC), said that work is ongoing to identify areas where the Philippines can See “PHL makes,” A2
LANGUAGE, LEGACY, AND LOCAL FLAVORS Commemorating the 147th birth anniversary of President Manuel L. Quezon, Interior Secretary Jonvic Remulla, Quezon Governor Dr. Helen Tan, and BGen. Jose Ambrocio Rustia lead the
wreath-laying at the Quezon Monument in Perez Park, Lucena City on August 19, 2025. Quezon, hailed as the “Father of the Philippine Commonwealth,” championed national unity and the promotion of the Filipino language, which laid the groundwork for today’s Buwan ng Wika celebrations. Lucena City, the provincial capital of Quezon, honors his legacy not only through monuments but also through educational programs and cultural events that highlight the local language and heritage. After the ceremony, officials toured trade booths at the 13th Niyogniyugan Festival, celebrating Quezon Province’s local products and delicacies. BERNARD TESTA
PHL LOOKING TO SCIENCE TO REGAIN BANANA EXPORT RANK By Ada Pelonia
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@adapelonia
CIENTISTS want to help the Philippines regain its status as the world’s secondlargest exporter of bananas by making the local variety pestresistant and prolonging its shelf life through genome editing. Reynante Ordonio, Scientist I of the Philippine Rice Research Institute (PhilRice), said United Kingdom-based biotechnology company Tropic is seeking the country’s approval of a geneedited banana that is resistant to Panama disease.
The same company has received approval of a non-browning gene-edited banana from the Bureau of Plant Industry (BPI) that could potentially extend the crop’s shelf life and reduce wastage. Ordonio explained that geneediting eliminates the polyphenol oxidase gene that catalyzes the oxidation process, which turns fruits brown. “So, when those genes are lost, [bananas] stay fresh for a longer period of time and won’t turn brown [immediately],” he told the BusinessMirror on the sidelines of See “PHL,” A2
PHL could lose $2.2-B export revenues By Andrea E. San Juan
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HE Philippines could lose $2.2 billion in export revenues in the latter half of 2025 alone due to the new duties slapped by the United States, according to local think tank UP Center for Integrative and Development Studies (UP CIDS). In its policy brief, the think tank explained that while the 19-percent tariff imposed by the United States on most Philippine exports excludes some high-value sectors, notably electronics and machinery, it still affects approximately one-third of total Philippine exports to the US, particularly labor-intensive goods such as garments, footwear, and tobacco. Using detailed 2024 trade data and product-level elasticities, the policy
brief “simulated” the short-term impact of the new tariff regime. “Results suggest a projected fall in Philippine exports to the US from US$14.6 billion to US$11.5 billion, leading to a projected trade loss of US$2.2 billion in the latter half of 2025 alone,” the think tank noted. UP CIDS said while some product lines may benefit from a reduced tariff relative to their previous Most Favored Nation (MFN) rates, these are “marginal” and do not offset losses in major product categories. With this, the think tank pointed to the need for strategic adaptation through domestic procurement reform, industrial upgrading under the Tatak Pinoy Strategy, and regional coalition-building. The UP CIDS policy brief also ex-
plained that the policy shift brought about by the imposed tariffs of Washington presents a “dual risk” for the Philippines, whose export portfolio is “heavily concentrated” in electronics and labor-intensive consumer goods. “On one hand, preferential treatment for high-value sectors like semiconductors was preserved. On the other, exposed segments face severe competitive pressure from regional suppliers not subject to similar tariffs,” the think tank noted. Explaining the sectoral scope of the tariffs, the policy brief said several strategic sectors are exempt, based on the US Customs guidance and Annex II of E.O. No. 14257. These include electronics, chemicals, fuels, metals, and machinery, primarily those under Harmonized
System (HS) Chapers 27 and 72 to 85 (White House 2025b). After accounting for exemptions, UP CIDS said approximately 30 percent of 2024 Philippine exports to the US remain covered by the full 19-percent rate. Meanwhile, the “most affected” products are garments, tobacco, leather goods, and footwear. “These sectors are highly labor-intensive and represent long-standing Philippine strengths in low- to medium-value manufacturing,” the policy brief noted. On August 7,2025, the United States imposed a uniform 19-percent tariff on most Philippine exports, pursuant to US Executive Order No. 14257 and “subsequent” bilateral negotiations.
PESO EXCHANGE RATES n US 57.0610 n JAPAN 0.3860 n UK 77.0951 n HK 7.2969 n CHINA 7.9412 n SINGAPORE 44.4366 n AUSTRALIA 37.0440 n EU 66.5502 n KOREA 0.0411 n SAUDI ARABIA 15.2073 Source: BSP (August 19, 2025)