He also cited geopolitical tensions, including the Russia-Ukraine war, as well as lingering pandemic effects that have unsettled global supply chains and triggered periodic export restrictions on key commodities.
“As a businessman before, this is kind of normal,” he said. “Sometimes exports are cut, there is ASF here, bird flu there, supply chains are disrupted. So I kind of see this as normal, but a little bit extreme this time.”
Tiu Laurel said the overlapping nature of these risks signals a shift from isolated disruptions to a more persistent pattern of global instability, requiring governments to adopt more flexible and market-oriented strategies.
For the Philippines, he identified production cost inefficiencies as a major constraint, citing gaps in infrastructure and logistics that undermine competitiveness.
“What we have to tackle is the low cost of producing products, which would involve infrastructure and logistics,” he said.
While noting that the country remains competitive in product quality and marketing, he stressed that cost structures will ultimately determine the resilience of both domestic supply and export performance.
Despite the challenges, Tiu Laurel underscored the continued relevance of the World Trade Organization as a platform for dialogue in an increasingly fragmented global trade environment.
“As a venue alone, it is already important,” he said. “A place where people can talk and meet always helps, especially in situations like this.”