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Philippine Economic Zone Authority exporters are set to benefit from the United Kingdom’s new trade preference scheme that is set to be implemented this year
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The UK Developing Countries Trading Scheme, together with PEZA’s fiscal and non-fiscal incentives, will benefit PEZA exporters from duty-free exports to the UK on more than 80% of eligible products
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These schemes would help them save up to £21 million a year as it will remove taxes on over 150 Philippine-made products
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PEZA looks forward to pronouncements of the UK that it will invest in the Philippines, specifically on green energy, ahead of the visit of President Ferdinand Marcos, Jr.
Philippine Economic Zone Authority (PEZA) exporters are set to benefit from the United Kingdom’s (UK) new trade preference scheme set to be implemented this year, according to PEZA director general Tereso Panga.
The UK Developing Countries Trading Scheme (DCTS) aims to lower or remove tariffs on additional 156 products for developing countries, including the Philippines, in addition to more than 6,000 tariff lines covered by the European Union’s (EU) Generalised Scheme of Preferences Plus (GSP+).
Prospectively, under the DCTS and PEZA’s fiscal and non-fiscal incentives, PEZA said exporters will benefit from duty-free exports to the UK on more than 80% of eligible products, helping them save up to £21 million a year as it will remove taxes on over 150 Philippine-made products.
Following the UK’s official departure from the EU in 2020, it has introduced a new, simpler, and more generous trade preferences scheme to improve access to the UK market for developing countries. The DCTS will replace the UK’s Generalised Scheme of Preferences in early 2023.
The Department of Trade and Industry earlier said the country is awaiting the UK’s full regulation for the implementation of the DCTS, which will set out the complete details on the final product coverage, rules of origin, eligibility criteria, and monitoring procedures, among others.
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Aside from the DCTS, PEZA looks forward to the pronouncements of the UK that it will invest in the Philippines, specifically on green energy, ahead of the visit of President Ferdinand Marcos, Jr. Marcos is visiting the UK to attend the coronation of King Charles III on May 6 and will also meet UK Prime Minister Rishi Sunak.
“The UK visit of the President will strengthen further the investment interest in the Philippines as well as open up the British market to Filipino exporters,” Panga said in a statement.
PEZA noted that the total commitment of British investment for the Association of South East Asian Nations is £500 million for the next five years.
“The trip of the President to the UK will potentially ascertain the amount that will be carved out for Philippines from the £500 Million commitment,” PEZA said.
PEZA noted that as of December 2022, there are a total of 93 UK companies registered in PEZA which generates P185.947 billion investments, US$137.430 million exports, and creates 88,108 jobs for Filipinos.
In 2022, bilateral trade between the UK and the Philippines reached £2.1 billion. PEZA said this resulted in British retail brands like Tesco & Woolworth being exposed to the Philippine market.
