MANILA, Philippines–The Philippines has begun making the necessary preparations to ensure that local exporters will be able to immediately tap the benefits of the European Union’s new Generalized System of Preferences (GSP) scheme, or GSP+.
According to Trade Undersecretary Adrian S. Cristobal Jr., the government hopes that the European Parliament will hand down a favorable decision on the Philippines’ trade status by December this year.
For now, the Department of Trade and Industry (DTI) has started its “One Country, One Voice” consultations with exporters and government agencies regarding the GSP+.
“At this stage, our consultations are more in-depth. We are gathering more practical issues and suggestions from exporters to the EU, such as the canned tuna producers and meat processors, as well as representatives from the garments, chemicals, semiconductor and electronics sectors,” Cristobal said. “Practical issues include capacity building for government agencies, like the Bureau of Customs, Bureau of Fisheries and Aquatic Resources, regarding rules of origin for instance, and the usual phytosanitary measures, standards and requirements of the EU market on processed food.”
The series of consultations will enable local businesses to enjoy the EU’s GSP+ benefits right away, Cristobal said.
“We’re quite optimistic that it will be approved,” he added.
Securing the EU’s approval for the GSP+ program is part of the Philippine government’s strategy to further boost bilateral trade with the 28 member states of the European Union. The approval of the country’s GSP+ application is expected to increase Philippine exports to the EU by as much as 611 million euros, or roughly P38 billion a year.
According to earlier projections, once the country’s application for the GSP+ has been approved, product sectors with the highest projected increases are animal or vegetable fats and oils (231.2 million euros); prepared foodstuffs (151.2 million euros); textiles and garments (79.7 mullion euros); footwear, headwear, umbrellas (28.5 million euros); and chemical products (17.1 million euros).
These projections are also expected to generate 267,587 additional jobs in the agriculture and manufacturing sectors.