The dangerous arms black market
There is too much at stake for the Philippines to be involved in illegal arms trade, especially as now as the country serves the current ASEAN chair, Manuel Mogato writes.
Manuel Mogato | May 31, 2026
MANILA — Conflicts create an illicit weapons market anywhere in the world.
In the 1980s and 1990s, for instance, small arms from Indo-China found their way into the hands of Islamist extremists in the Eastern Indonesia region and Muslim separatists in the southern Philippines.
After the Vietnam War in the 1970s, there was a large surplus of Soviet and American-made assault rifles and handguns in Cambodia and Laos that were smuggled across Southeast Asia.
In the early 2000s, at the height of the Abu Sayyaf Group’s kidnapping spree in Basilan and Sulu, the al-Qaeda-linked Islamist militants displayed to journalists modern and brand-new automatic assault weapons and rifle-propelled grenade (RPG) launchers, firing them inside their jungle lairs.
Also in the Philippines, the US military was surprised to discover one of its donated 60mm mortars to the Armed Forces of the Philippines was in the hands of a paramilitary force under a famous Muslim warlord in the central Mindanao region.
The small arms black market also thrives in areas in South Asia, the Middle East, many troubled African states, and, now, in Ukraine.
But more lethal and dangerous weapons are sold in these illegal arms markets — shoulder-fired man-portable air defense (MANPADS) stinger missiles, rifle propelled grenades (RPGs), machine guns, crew-served weapons, bombs, explosives, all sorts of munitions and ordnances, drones, and even armored vehicles and main battle tanks.
This is where international criminal and terrorist groups, such as drug cartels, Palestinian militants, and even the Taliban, sourced their weapons.
An estimated $2 to $3 billion worth of small arms and light weapons are sold in the black and gray markets every year, fueling non-state actors’ violence and conflicts around the world.
Most of these weapons come from the United States, Europe, and other large producers of defense equipment, but somehow find their way to arms traffickers.
Even in smaller countries, where local defense contractors that produce only parts of weapon systems, could find their products in the illicit markets.
An American official even said it is impossible track the stinger missiles and drones once they got into the black and gray markets.
What creates these markets for defense weapons?
The conflicts in the Middle East, where Israel has been battling with non-state actors, Hamas and Hezbollah militants, could be a factor.
Closer to home, NATO weapons, earmarked to help Ukraine repulse Russia, may have been channeled to the black market.
Interdependence has grown not only on producing consumer goods but on military and defense-related equipment as well.
For instance, an armored vehicle assembled in Brazil may have parts from Germany, the United States, and other countries.
A naval strike missile sold by European defense contractor to Malaysia has an American component and the deal was abruptly terminated. (Also read: Malaysia seeks $250 million damages from Norwegian supplier for revoked missile deal)
These are enough reasons for smaller defense contractors around the world, including the Philippines, to think twice to sell equipment and parts to both Ukraine and in the Middle East.
There were reports European companies sourced parts and other gadgets from smaller countries to sustain the conflict in Europe.
In Manila, there are companies who export small components of non-lethal equipment to Germany that find their way into the conflict zone.
This could complicate things as there were some Filipinos already hired as mercenaries for Russia and Ukraine. If certain parts or components made from the Philippines are found in the Ukraine conflict, it could embarrass the government of President Ferdinand Marcos, and the country’s chairmanship of the Association of Southeast Asian Nations (ASEAN) this year. (Also read: Friends to all, enemies to no one)
It could also impact on its relations with an ASEAN dialogue partner marking 35 years of relations in the upcoming summit in Kazan, Russia.
Energy security would be high on the agenda in the June summit meeting as Southeast Asia, particularly the Philippines, searched for alternative sources of reliable and steady crude oil supply after three-month conflict in Iran drags on.
It is not wise for ASEAN, and the Philippines, to be drag into then conflict in the Middle East and Ukraine, by exporting parts and components of lethal and non-lethal weapons to European states. These exported products may find their way to the conflicts in the Middle East and Ukraine. (Also read: South China Sea Must Avoid Becoming Hormuz)
ASEAN, including the Philippines, must stay away from these smaller weapons and non-lethal deals because it may inadvertently helps a flourishing illegal arms market.



