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The European Commission proposes a four-year extension of the European Union Generalised Scheme of Preferences Plus coverage for the Philippines
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Trade Secretary Alfredo Pascual says the proposed extension is a big boost to Philippine exporters
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Exporters will continue to benefit from duty-free entry of 6,274 eligible products to the EU market
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The EU GSP+ coverage of the Philippines is set to expire on December 31, 2023
The European Commission has proposed a four-year extension of the European Union Generalised Scheme of Preferences Plus (GSP+) coverage for the Philippines until December 2027, according to Trade Secretary Alfredo Pascual.
Pascual welcomed the proposed extension which, he said, came at “an opportune time.”
The trade secretary recently met with key EU officials in Brussels, the capital of Belgium and administrative centre of the European Union, during a recent investment roadshow to discuss the renewal of the GSP+ scheme.
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The EU GSP+ coverage of the Philippines is set to expire on December 31, 2023. The Department of Trade and Industry (DTI) said the proposed extension will enable Philippine exporters to continue to benefit from enhanced market access and fewer trade barriers for their products in EU states.
“The GSP extension is a significant boost for our exporters. It will enable them to maintain their competitive edge in the EU market and expand their trade volumes. This development reinforces our commitment to strengthen our trade relations with the European Union,” Pascual said in a statement.
GSP+ is an EU program that allows 65% of a beneficiary countries’ products duty-free access into the European market.
The Philippines received beneficiary country status under the EU GSP+ in December 2014. Under this, the country may export 6,274 eligible products duty-free to the EU market. Before December 2014, the country was covered by the regular EU GSP, which provides zero duty to only 2,442 products and reduced tariffs to 3,767 products.
About 26% of total Philippine exports to the EU valued at EUR 1.6 billion (P27.2 billion at today’s exchange rate) enjoyed preferential treatment under this scheme in 2020.
The EU is one of the Philippines’ largest trading partners, and the GSP+ plays a crucial role in facilitating trade between the two regions.
DTI said the extension of the GSP+ will give for Philippine businesses stability and predictability, allowing them to plan and invest for the long term. It also serves as an incentive for European companies to explore partnerships and invest in the Philippine market, fostering economic growth and facilitating employment generation.
DTI, in collaboration with other relevant government agencies, said it will engage actively with Philippine exporters and provide support in maximizing the benefits of the GSP+ extension.
Pascual also emphasized the importance of raising local businesses’ awareness of the GSP+ scheme and its potential advantages. Furthermore, he said that DTI will work closely with the EU to ensure a smooth transition and effective implementation of the extended GSP+.
“With the extension of the GSP, it opens up tremendous opportunity for the Philippines to strengthen trade relations with the EU. We will seize this opportunity and work towards maximizing the benefits for our exporters and the overall economic development of our country,” Pascual said.
