PH ranks 5th biggest US GSP beneficiary
The Philippines was the fifth largest user of the United States generalized system of preferences (GSP) last year, having exported $1.4 billion worth of goods under this scheme.
This was about 13 percent of the country’s total exports to the US last year, according to the Office of US Trade Representative (USTR).
“The Philippines has been a GSP beneficiary country since the program’s inception in 1976 and has long been one of the program’s biggest users. In 2015, it was the fifth-largest user of GSP behind India, Thailand, Brazil and Indonesia,” the report said.
“The Philippines has expanded and diversified the number of products it exports to the United States under GSP, counting more than 580 products in 2015,” it said.
Leading GSP imports from the Philippines, according to the USTR, include automobile tires, telescopic sights, measuring and checking instruments, coconut waters, and appliances and machines.
The USTR said imports from the Philippines under the GSP grew faster at 49 percent since 2010, compared to the 28 percent growth seen in total US imports for the same period.
It said that one import product that has grown considerably due to the GSP scheme was insulated beverage bags. It reported that US imports of these bags under the said preferential scheme rose by almost 270 percent since 2010, hitting $17.5 million in 2015.
Under the GSP, the normal 7 percent duty on these bags is eliminated for imports from the Philippines.
A supplier benefiting from this growth was East-Cam Tech Corp., which became the official manufacturer of Camelbak products in the Philippines in 2002. At its start, ECTC had only 300 skilled sewers.
ECTC now employs 1,500 workers and it credited part of its growth to the US GSP program, which was a boost to the company’s competitive advantage.
Last year, total US imports made under the GSP scheme reached $17.5 billion, 75 percent of which came from the top five beneficiary countries that included the Philippines. Leading US imports from the 122 beneficiary countries were motor vehicle parts, ferroalloys, monumental or building stone, electric motors and generators, jewelry of precious metal.
The USTR said the GSP scheme was designed to promote economic growth in developing countries by providing preferential duty-free treatment for a broad range of products imported into the US from eligible countries and territories.
