EC to endorse Phl bid for GSP Plus

MANILA, Philippines - The European Commission (EC) is set to endorse the Philippines’ application to qualify for the Generalized System of Preferences Plus (GSP+), a scheme that would allow more goods to enter the bloc at zero tariff.

“We just received a note verbale from the EC stating that they will favorably endorse to the EU Parliament our application for GSP+. We have passed the first hurdle in getting GSP+ status with the EU,” Trade Undersecretary Adrian Cristobal Jr. said in a briefing.

 Should the Philippines qualify for EU GSP+ status, the country’s exports to the region are expected to rise as more products are allowed to enter the bloc at zero duty.

At present, the Philippines is a beneficiary of the regular GSP which covers 6,209 products, with 2,442 products subject to zero duty and the rest subject to with lower tariffs.

The EU GSP+ covers 6,274 products which could enter the EU at zero duty. Initial estimates from the DTI show that the GSP+ could increase Philippine exports to the EU by as much as 611.8 million euros, representing an 11.96 percent increase from Philippine exports to the bloc in 2012.

Product sectors with the highest projected increases are animal or vegetable fats and oils; prepared foodstuffs; textiles and garments; footwear and umbrellas; and chemical products.

Cristobal said the Philippines expects to get approval for its application by December this year which would allow exporters to enjoy the preferential tariffs by early next year.

“It is feasible to get approval by December. We just have to work hard to make sure it is on the agenda of the EU Parliament in the fourth quarter,” he said.

While waiting for the approval of its application, the DTI is holding workshops to prepare exporters.

“We are organizing a series of workshops so that once we get access, we can start exporting duty-free of more than 6,000 products. We have convened a Philippine task force internally to advance preparations to access this market in cooperation with the EU delegation in Manila through the TRTA (Trade Related Technical Assistance) project. We are requesting experts from the EU on rules of origin and other technical matters to assist our exporters,” Cristobal said.

But while exports to the EU are seen to increase once the Philippines gains across GSP+ status, Cristobal  said the government’s inability to address the trade bloc’s concerns on illegal, unreported and unregulated fishing (IUUF) may still prevent the country from enjoying the GSP+ benefits.

The EU has raised concerns over the Philippines’ shortcomings in the fight against illegal fishing, warning that the country’s fish exports could be banned from the bloc.

“It is urgent that we implement those reforms or adjustments that were enumerated by the EU. We have until September to do that and the Department of Agriculture and BFAR (Bureau of Fisheries and Aquatic Resources) of course have the full support of DTI to meet those. We may be able to gain market access, but if our fish, tuna (and) sardines are prevented from entering the EU market because of the IUUF, then it will be for naught,” Cristobal warned.