For PH, GSP+ may mean increased trade with EU

Trade and Industry Undersecretary Adrian S. Cristobal Jr. EU PHOTO FROM BOI.GOV.PH

MANILA, Philippines—Philippine exports to the European Union may grow by an additional P36 billion (611 million euros) once the country qualifies in the EU’s new Generalized System of Preferences (GSP) scheme, or GSP+, according to Trade Undersecretary Adrian S. Cristobal Jr.

The trade official expressed confidence that the Philippines will be able to avail of the GSP+ benefits, noting that the country has met the criteria and requirements set by the EU.

To avail of the GSP+, a country must meet two conditions, namely the non-diversification of exports and low proportions of EU imports; and the ratification of 27 international conventions on human and labor rights, environment and governance principles and effective implementation of these conventions.

The EU already announced that the Philippines is eligible under the first criterion, Cristobal said.

“We have consolidated the documentary requirements relative to the ratification and implementation of the 27 international conventions. These documents form part of our submission to the EU, together with a formal letter signifying our country’s intent to apply to the GSP+,” the trade official added.

According to Cristobal, an application will be filed by October and will be processed for at least six months by the EU. The GSP+ is expected to take effect by January 2014.

The GSP is an autonomous trade arrangement wherein the EU grants non-reciprocal trade preferences to exports of 176 GSP beneficiary countries, including the Philippines. This covers 6,209 tariff lines, 3,767 of which are subject to reduced tariffs, while the rest of 2,442 tariff lines are subject to zero duty.

Last year, Philippine GSP exports to the European Union reached 1.076 billion euros (about P63 billion).

“Increased exports will translate to enhanced production capacity and will generate an additional 270,000 jobs in both the agriculture and manufacturing sectors,” Cristobal said.—Amy R. Remo