The EU-ASEAN Business Council (EU-ABC) has called for stronger and more coordinated action to combat illicit trade, identifying it as a growing strategic economic risk to ASEAN’s long-term growth, public safety, and supply chain resilience. In its latest report, “Driving ASEAN Action Against Illicit Trade: A Strategic, Philippines’ Priority Economic Deliverables (PED)-aligned Blueprint for the Philippines’ 2026 ASEAN Chairship” (the report), the EU-ABC outlines a comprehensive prevention framework and underscores the role of ASEAN Dialogue Partners, including India, in addressing illicit trade across the region.
The report stresses that illicit trade poses serious threats to economic expansion, government revenues, consumer protection, and regional supply chain stability. It highlights the need for enhanced regional coordination under the Philippines’ ASEAN Chairship in 2026.
India, owing to its strategic geographic position, enforcement capabilities, and growing emphasis on risk-based trade governance, is well placed to serve as a key dialogue partner. Through strengthened cooperation, enhanced intelligence sharing, and the implementation of pre-export assurance mechanisms, India can play a pivotal role in advancing secure and efficient trade practices.
The report puts forward five main recommendations:
· Strengthen institutional coordination through a consolidated platform for intelligence sharing, joint action, commitment implementation and public-private engagement
· Align policy and regulatory frameworks across ASEAN Member States in licensing and supply chain oversight, risk-based pre-export assurance and shipment control, and other key areas
· Leverage digital tools to improve intelligence sharing and risk management across customs authorities
· Develop common regulatory principles that can be applied in sector-specific ways rather than uniform rules
· Increase structured collaboration with the private sector and key Dialogue Partners to strengthen supply chain integrity
Navaneel Kar, Managing Director, Philip Morris India (PM India) said, “We note the report and its assessment of the growing risks associated with illicit trade, which continues to undermine revenue integrity, market transparency, and the rule of law. Illicit tobacco trade is a long-standing challenge, and addressing it requires sustained focus, credible data, and effective governance anchored in lawful processes. At PM India, our efforts have focused on strengthening understanding of illicit trade dynamics through analytical research, structured market intelligence, and the application of global best practices, including voluntary track-and-trace initiatives implemented internationally. This has included structured market intelligence work across multiple states and retail environments, helping to better map illicit trade patterns and risk factors. In India, market insights shared by PMI together with awareness initiatives on illicit trade risks and product identification undertaken for participants from law enforcement, have contributed to the broader information landscape around this issue. We remain committed to contributing responsibly to ongoing efforts aimed at strengthening transparency, compliance, and the integrity of lawful trade.”
“Illicit trade comes with huge costs for the region. Economic loss aside, communities suffer from health and safety risks, environmental harm, organised crime enabled by illicit trade, and worst of all, the loss of human lives. It must be met with a firm and coordinated response. The Philippines is well-placed to lead this charge, and we are confident our report will prove useful in ASEAN’s fight against illicit trade. This is the moment for ASEAN to turn economic risk into opportunity. The Philippines has always been a strong champion of cooperation and constructive dialogue, and we look forward to working closely with them towards a stronger, more resilient ASEAN,” said EU-ABC Executive Director Chris Humphrey.