The Philippines is seeking renewal of the European Union (EU) generalized system of preferences plus (GSP+) ahead of the duty-free scheme’s expiry at the end of 2023 while pursuing a possible free trade agreement (FTA) with the bloc.
“We must be able to renew and extend (EU GSP+), and in the long term… we could think about the FTA,” said
Angelo Benedictos, director of the DTI-Bureau of International Trade Relations. Two rounds of Philippines-EU FTA negotiations have been conducted.
Benedictos said in a recent webinar under an FTA, the Philippines could secure additional duty-free market access beyond those covered under the GSP+ scheme and on a permanent basis.
An FTA, he added, would provide a conducive framework for attracting greater investments from the EU.
It would also make the Philippines at par with other Asean member states which are aggressively pursuing FTAs with the EU.
Kristiyana Kalcheva, policy officer for bilateral relations in trade and sustainable development and the EU GSP in the European Commission’s (EC) directorate-general for trade, said as the current GSP regulation expires on Dec. 31, 2023, the EC made a proposal for a new regulation last September 22, which the European Parliament and the Council are currently discussing.
“The aim is to have the new GSP regulation adopted by 2022, with application from 1 January 2024, to ensure predictability and a smooth transition,” she said.
Kalcheva said one important aspect is the Commission’s proposal for GSP+ beneficiaries to reapply for the scheme.
“This is because there are new conditions such as the conventions and also an element which involves a plan of action for the implementation of conventions so a reapplication is the best way to ensure that beneficiaries abide by the new proposed conditions for entering the GSP+,” she added.
Meanwhile, the country is urged anew to increase the utilization of the EU GSP+ utilization.
Luc Veron, EU ambassador and head of delegation of the EU delegation to the Philippines, said the country’s utilization rate of EU GSP+ preferences reached 75 percent in 2020.
Veron said agriculture goods, including processed foods and fishery products and manufactured goods, highly benefit from GSP+.
In a separate interview, Sergio R. Ortiz-Luis Jr., president of the Philippine Exporters Confederation Inc. said that at least 500 Philexport members are actively exporting to the EU.
“The extension of the EU GSP+ and an EU FTA will augur well in developing and growing this supply chain and actual export performance,” he said. “We just need to address issues such as high shipping cost and raw material availability for more finished products to qualify.” – Irma Isip
