EU allows Phl to export more goods at zero tariff

MANILA, Philippines - The European Union Parliament has approved the Philippines’ application for the Generalized System of Preferences Plus (GSP+), a program that will allow the country to export more goods at zero tariff to the bloc.

In a statement yesterday, the EU Delegation to the Philippines said the EU Parliament decided to grant GSP+ status to the Philippines during its plenary meeting.

“This is very good news for the Philippines as it will bring tariffs to zero percent for two thirds of tariff lines, including strategic products that the Philippines is already exporting to the EU. This will immediately translate into savings of tens of millions of euros per year in foregone customs duties,” EU Ambassador Guy Ledoux said.

Apart from giving advantage to Philippine exports, Ledoux said the EU concession also improves the attractiveness of the Philippines as a destination for new agricultural and manufacturing facilities for products that will enjoy duty-free access to the EU.

“This gives the Philippines a comparative advantage and represents very tangible EU support to the Philippine strategy to increase exports and investments, and diversify its industry,” he added.

With the GSP+ status, the Philippines could enjoy zero duty for 6,274 products entering the EU.

Prior to the approval, the country was a beneficiary of the regular GSP, which covers 6,209 products, with 2,442 products subject to zero duty and the rest slapped with lower tariffs.

Initial estimates made by the Department of Trade and Industry showed that the GSP+ could increase Philippine exports to the EU by 611.8 million euros.

The increase is expected to come from product sectors including animal or vegetable fats and oils, prepared foodstuffs, textiles and garments, footwear, headwear, umbrellas and chemical products.

Philippine GSP exports to the EU reached 1.076 billion euros in 2012.

Trade Undersecretary Adrian Cristobal Jr. had said the Philippines’ EU GSP+ status would also lead to more employment opportunities.

“We have the momentum for sustained economic growth that can substantially reduce poverty in the country. A critical element for sustained growth is boosting trade with the rest of the world, and the GSP+ can create over 200,000 new jobs in the agriculture and manufacturing sectors in its early years of implementation. Most of these jobs will be in rural areas outside the major cities where they are needed the most,” he said.

Thirteen other countries have been granted GSP+ privileges by the EU.

Apart from the EU GSP+, the Philippines is also looking at entering into a free trade agreement with the bloc.