TRADE Secretary Ramon Lopez will seek audience with the British trade minister to secure the Philippines’ existing preferential trade arrangement with the United Kingdom.
This was in anticipation of the possible impact of Britain’s vote to leave the European Union (Brexit) on the Philippines’ trade arrangements with the 28-member bloc, particularly the generalized system of preferences (EU GSP+).
“We will have to review the impact of Brexit on Philippine trade in terms of what are our arrangement with UK will be as soon as that (exit) gets implemented in two years or less. Our existing agreement is with the EU, so we will have to have separate discussions (with the UK),” Lopez said in an interview with the Inquirer on Friday.
“Right now we have very good communication line with British Ambassador Asif Ahmad. We just have to find out what can we work out with them so we can maintain the GSP+ status with the UK,” he said.
The EU GSP+ currently allows the zero-duty entry into the 28-member bloc of 6,200 product lines from the Philippines for 10 years, which started in December 2014. With the Brexit, however, there is a likelihood that Philippine exports to the UK, which were previously covered by the GSP+ scheme, may no longer enjoy preferential treatment.
“We want to be able to enter their market, and for them to continue to trade with us under similar arrangements, even if they are no longer under the EU,” he said.
The plan, according to Lopez, was to start initial discussions this year, as soon as both sides are ready to sit down and tackle the issue of trade preferences. Total bilateral trade between the Philippines and the UK was estimated to have grown by 30 percent to some $2.6 billion last year. Amy R. Remo