"Made in the Philippines" gets boost from EU-GSP+; DTI conducts info sessions for exporters
Philippine producers can now export more than 6,000 products to any of the 28 member countries of the European Union (EU) at zero tariff using the Generalized System of Preferences Plus (GSP+). Products that may avail of the duty free access include coconut and marine products, processed fruit, prepared food, animal and vegetable fats and oils, textiles, garments, headwear, footwear, furniture, umbrellas, and chemicals.
The Philippines, currently the only country in ASEAN to be accepted in the scheme, applied for the scheme last year and was accepted formally into the EU-GSP+ on December 19, 2014.
What is the GSP+
The GSP+ is a special incentive trade arrangement for the Implementation of 27 international conventions on labor and human rights, environmental protection and good governance. This comes in the form of zero duties and offers a more generous scheme of preferences compared to the regular GSP.
It has a larger coverage of 6,274 products, compared to the 6,209 products under the regular GSP, of which, only 2,442 are subject to zero duty while 3,767 have reduced tariffs.
Benefits of the GSP+ on the Philippines
Philippine exports to the EU is expected to increase within the first year of implementation of the GSP+ scheme, as more products will be accorded zero duty. According to a study made by the Department of Trade and Industry (DTI), Philippine exports under GSP+ will increase by ?611.8M during the first three years of availment.
The products expected to benefit most from zero tariff are:
|Product?||Regular GSP?||GSP Plus?|
|Textiles and garments||9.6%||0%|
|Footwear, headwear, umbrellas||9.6%||0%|
The projected increase in exports will translate to more than 200,000 new jobs generated in both the agriculture and manufacturing sectors. Many of these new jobs will be created in the rural areas.
Published: 09 February 2015