US firms flag PH procurement bias

United States (US)-based manufacturers and businesses have raised concerns about the Philippine government’s procurement scheme, which heavily favors local firms, labeling the policy as a major barrier to trade.

- BY DEXTER BARRO II

In separate submissions to the Office of the US Trade Representative (USTR) last month, the United States Council for International Business (USCIB) and Pharmaceutical Research and Manufacturers of America (PhRMA) tagged the Philippines’ New Government Procurement Act (NGPA) as a trade barrier.

The USTR, which oversees foreign trade policies, has invited comments from American industry and business groups on “unfair” trade practices perceived to undermine US competitiveness.

These submissions will inform the USTR's 2026 National Trade Estimate (NTE) Report on Foreign Trade Barriers, which identifies trade barriers the US government aims to address.

The designation of the NGPA as a trade barrier by both USCIB and PhRMA suggests that the law may be included in next year's report.

As indicated in the 2025 NTE Report, the Philippines' government procurement system generally favors nationals or Filipino-controlled enterprises in awarding procurement contracts.

Under Republic Act (RA) No. 9184, or the Government Procurement Reform Act of 2002, at least 60-percent Filipino ownership is required for the procurement of goods, consulting services, and infrastructure projects.

During the bid evaluation process, domestic goods are also given preferential treatment over imported products.