MANILA, Philippines (Xinhua) - By Dec. 25, 2014, the Philippines will start exporting at least 4,000 tariff lines under zero duties after its petition to the European Parliament got approved, officials said today.
Trade Secretary Gregory L. Domingo said in a press briefing that the country is now part of European Union (EU) Generalized System of the Preferences Plus (GSP+) that will benefit the Philippines for the next ten years.
"This a very good Christmas gift for the Philippines. At the very least, we stand to potentially gain an added 611.8 million euros in exports to the EU during the first year that this arrangement will take effect," said Domingo.
This programs could create over 200,000 news jobs in the country specifically in agriculture and manufacturing sectors.
Trade Undersecretary Adrian Cristobal said Philippines is the only country in Association of Southeast Asian Nation (ASEAN) that is a recipient of EU GPS+. This is a good strategy for the Philippines to expand its presence in Europe.
"With the GSP+ in place, our exporters will have better access and comparative advantage in the EU market. We expect foreign investors to turn their attention to the Philippines and consider the country as their manufacturing hub for the ASEAN region," he said.
Philippines is already a recipient of the EU's Regular GSP that offers reduced tariffs or zero tariffs on a limited number of products. But receiving GSP+ provides more generous scheme of preferences and has a larger coverage of 6,274 products.
Total exports to the EU that were eligible under GSP in 2013 amounted to 1.69 billion euros or 33 percent of total exports to the EU. Actual utilization was around 64 percent or 1.08 billion euros but this figure is set to rise as a result of GSP+.