Fact Check: Did the EU retain trade perks for Philippines?

MANILA, Philippines — Did the European Union retain the Philippines’ duty-free privileges for most of its exports to the bloc?

In 2014, the Philippines was granted beneficiary country status under the General System of Preference (GSP+) — a preferential trade deal that allows 6,200 of its products to enter the EU market duty free.

However, the alleged cases of extralegal killings in the country as part of President Rodrigo Duterte’s drug war have put at risk the country’s GSP+ privileges.

The country’s beneficiary status under the GSP+ necessitates the implementation of 27 international treaties and conventions on human rights, labor rights, environment and governance.

Last week, the second biennial GSP report—which reviewed the compliance of beneficiary countries with its obligations—was released by the European Commission and the European External Action Service.

EU concluded in its report that the Philippines had made progress on labor rights, environmental protection, gender equality, people trafficking, health, education, social-economic rights and fight against corruption.

However, the bloc said “extrajudicial killings, in particular in the fights against illegal drugs, and related impunity continue to be a serious concern, as well as the possible reintroduction of the death penalty and the lowering of the age of criminal responsibility.”

In a report by Agence France-Press, presidential spokesperson Harry Roque said: "We are elated that GSP+ was retained.”

READ: Palace hails retention of EU trade perks despite concerns on EJKs

Pass or fail

According to the EU, the biennial GSP report does not constitute a “pass or fail” test.

“Instead it assesses, in a factual and objective manner, the progress being made (or lack thereof) by each beneficiary country in implementing the 27 conventions,” the EU explained.

“If needed, the GSP report is taken into account by the Commission when considering if there are sufficient grounds for initiating the procedures for temporarily withdrawing GSP+,” it added.

“This could happen if a GSP+ beneficiary does not make progress (without legitimate and objective reasons) or if there is serious backtracking on commitments.”

In a statement issued on the day the EU Commission adopted the latest GSP+ report, Europe’s envoy to Manila Franz Jessen said European officials here and their Filipino counterparts “have an ongoing dialogue” and “frank discussion” on the Philippines’ compliance with its international obligations.

“The EU will continue to work closely with the Philippines through the ongoing GSP+ monitoring process, seeking to provide support to ensure that continued and tangible progress is made on implementing the 27 international conventions,” he remarked.

Won’t beg

Ahead of the report’s release, Trade Secretary Ramon Lopez said that while the Philippines wants to continue enjoying GSP+, the country won’t press the EU to keep the said trade perks.

“Of course we don’t want to lose it but it’s unilateral. What if they decide rightly or wrongly? So we cannot do anything about that,” Lopez said in a television interview last January 10.

READ: Philippines in good position to enjoy GSP+ with EU

Duterte, who is sensitive to criticisms of his human rights record, had repeatedly berated the EU and accused the bloc of hypocrisy and interference for expressing concern over the spate of killings under his fierce war on drugs.

Thanks to GSP+, the Philippines' exports to the EU grew by over 21 percent since last year, the bloc said.

Meanwhile, an estimated P120 billion worth of Philippine exports to EU were benefiting from duty-free products, especially in the food and agricultural sector. 

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