USTR closes review of PH labor condition

The office of the United States Trade Representative (USTR) formally closed on Wednesday its review of the Philippines with respect to labor rights, a precondition to the granting of the preferential duties under the US generalized system of preferences (GSP).

In a statement, the Department of Trade and Industry said the USTR found that workers’ rights issues in the Philippines were adequately addressed by the government.

The Philippines was found to have implemented needed reforms in labor laws and regulations to address workers’ concerns, it added.

“The US acknowledges our initiatives toward creating decent jobs and upholding workers’ rights. The closing of the GSP review on the Philippines is a major milestone for Philippine trade and labor,” Trade Undersecretary Adrian Cristobal Jr. said yesterday.

The US GSP aims to promote economic growth and development in developing countries through preferential and duty-free entry to the US market of products from 122 designated beneficiary countries (DBCs) and territories, including the Philippines.

The trade benefits, however, were tied to various conditions, including intellectual property rights protection, upholding of workers’ rights and protection against child labor.

The list of GSP eligible countries and articles may be modified in response to petitions and based on the findings of the annual review.

The GSP country review on Philippine labor standards and practices, which began in 2008, focused on monitoring the country’s progress on labor-related issues and labor reform legislation.

The US GSP program covers 5,000 products or tariff lines or about 47 percent of the 10,600 total US tariff lines. It includes most dutiable manufactures and semi-manufactures, and selected agricultural, fishery, and primary industrial products.

However, other products are prohibited by law from receiving GSP treatment. These include most textiles, watches, footwear, handbags, luggage, flat goods, work gloves and leather apparel. Other articles deemed import-sensitive cannot be made eligible for GSP.

In 2013, Philippine exports under the US GSP reached $1.256 billion, making the country the fifth largest beneficiary of the program. Major Philippine exports under the US GSP included measuring and checking instruments, appliances and machines ($78.2 million); cane sugar
($74.8 million); telescopic sights for rifles not designed for use with infrared light ($61.9 million) and insulated electric conductors ($60 million).