Philippine exports to the European Union (EU) increased 27% in the first half of 2015 as more exporters took advantage of the duty-free access to the European market after the country’s acceptance into the Generalized System of Preferences Plus (EU-GSP+) program, according to the Department of Trade and Industry (DTI).
During the first six months of 2015, total Philippine exports to the EU under the GSP+ amounted to EUR743 million (US$831 million). This compares with EUR584 million in total exports booked in the previous year under the regular EU-GSP program, according to the first EU-GSP+ monitoring report endorsed by the European Commission (EC).
The Philippines was granted beneficiary country status under the EU-GSP+ in December 2014. Under the EU-GSP+, the Philippines may export 6,274 eligible products duty-free to the EU market. Prior to December 2014, the Philippines was covered by the regular EU-GSP which provides zero duty to only 2,442 products and reduced tariffs to 3,767 products.
Trade Secretary Adrian Cristobal, Jr. lauded stakeholders for their efforts to fully utilize opportunities opened by the EU-GSP+. “The country’s beneficiary status under the EU-GSP+ is a result of what was a fruitful collaboration among government, the private and labor sectors, and industries. We urge local businesses to continue expanding their market presence and establish a stronger foothold in the EU market,” Cristobal said in a statement.
According to the EC report, in the three quarters of 2015 alone, exports of electronic products to the EU increased by EUR42.7 million; aircraft and spacecraft parts by EUR6.9 million; and optical, photo and medical equipment by EUR9.6 million. Meanwhile, exports of animal/vegetable fats and oil rose to EUR7.3 million in the first three quarters of 2015 compared to the same period in 2014.
Since the country entered the preferential tariff scheme, DTI has been conducting stakeholder consultations and information sessions around the country to equip local firms with technical knowledge on rules of origin and greater know-how on export product standards under the EU-GSP+. This includes more than 180 information sessions of “Doing Business with the European Union Using the GSP+” held in major export cities of the Philippines such as Cebu, Davao, General Santos City, and Angeles City.
Trade Undersecretary Dr. Ceferino Rodolfo said that the country’s becoming a beneficiary of the EU-GSP+ program is an essential achievement of the Philippines’ strategy to sustain and nurture trade and investment relations with Europe.
According to the EU’s monitoring report, the Philippines has been making good progress in pursuing its commitments under the EU-GSP+. The country’s beneficiary status under the GSP+ requires it to ratify and implement the 27 international treaties and conventions on human rights, labor rights, environment, and governance.
“While we are making headway on our commitments under the GSP+, we will continue to build competitiveness locally while encouraging foreign companies to invest or consider investing in the Philippines,” Rodolfo said.
Cristobal, meanwhile, emphasized that “competitiveness builds confidence and the capacity to innovate, pursue leads, seal deals, and deliver.”
The DTI has been working with the Department of Labor and Employment in conducting tripartite consultations with labor unions in the tuna industry to improve workers’ rights and working conditions in order to meet the stringent requirements of the EU. Both government agencies are also working on creating a Certification and Decertification Workers’ Rights Review Board for garments exporters that will facilitate the accreditation of manufacturers before they avail of preferential tariffs.
The EU is ranked as the Philippines’ fourth largest trading partner, third largest import source, and fourth largest export market. Major exports of the Philippines under the EU-GSP scheme include crude coconut oil, canned tuna, pneumatic tires, spectacle lenses, relays, preserved fruits, board and similar cabinets for electric control or the distribution of electricity, and ballasts for discharge lamps.
Image courtesy of Sujin Jetkasettakorn at FreeDigitalPhotos.net
