Philippine exports under the Generalized Scheme of Preference (GSP) will continue to enter the United Kingdom tariff-free this year through its own GSP, the Department of Trade and Industry (DTI) said.
The UK GSP replicates the market access and benefits provided by the European Union’s GSP+. The Philippines is included in the UK GSP’s Enhanced Framework, its counterpart of EU GSP+.
“The Philippines considers the United Kingdom as one of its major trading partners. We appreciate the inclusion of our country in the UK GSP and we are looking forward to resuming trade under this system,” said Trade Undersecretary Abdulgani Macatoman.
While the UK voted to leave the EU bloc in 2016, the country officially left in January 2020.
Citing a recent briefing held by UK’s Foreign Commonwealth and Development Office, DTI said the Philippines has a 75-percent utilization rate of its GSP+ benefits in 2019, with nuclear machinery and appliances as the top export products to the UK.
The Philippines is one of the beneficiaries of the EU GSP+, providing zero tariff for more than 6,000 products or two-thirds of its tariff lines. Zero-tariff products include bananas, tuna, pineapple and footwear.
On the other hand, under the UK’s Enhanced Framework, the Philippines still receives zero tariffs on two-thirds of its product lines. The UK GSP also requires compliance to the same 27 international conventions as the EU GSP+.