EU recognizes Phl’s progress in GSP Report

The European Union’s Fourth GSP Report, released recently, recognized the important strides made by the Philippines’ current administration and its commitment to GSP+ compliance. Department of Trade and Industry (DTI) Secretary Fred Pascual emphasized that the constructive dialogues within the GSP+ framework paved the way for the Philippines to address points of concerns. 

“The EU GSP+ is beneficial both for the Philippines and the EU in driving inclusive growth and sustainable development. In 2022, PH products worth EUR 2.93 billion were exported to the EU using GSP+ rates, achieving a utilization rate of 77%, the highest recorded by the Philippines,” Secretary Pascual said. 

The DTI chief also stressed that the EU GSP promotes good governance and sustainable development by facilitating trade. He added that it provides the Philippines with zero-rated or preferential tariffs on nearly 66% of tariff lines, significantly enhancing the country’s export capabilities to the EU market. 

The Philippines is the largest GSP+ country by gross domestic product (GDP), and the second largest exporter to the EU among the GSP+ beneficiary countries. 

The trade and industry chief highlighted that key Philippine exports, such as processed tuna, coconut products, canned pineapples, garments and footwear, benefit from GSP+ concessions, enabling wider access to the EU market. He also welcomed the recent decision by the European Parliament and the Council to extend the current Generalized System of Preferences (GSP) for an additional four years, or until 2027. 

Further, Secretary Pascual recognized the evident impact of GSP+ on Philippines-EU bilateral trade. He shared that the country’s exports to the EU reached a total trade volume of EUR 15.231 billion in 2022. 

The resumption of PH-EU FTA negotiations was also endorsed by EU Commission President Ursula Von Der Leyen during her visit to the Philippines in July as well as key business sectors such as the EU-ASEAN Business Council (ABC), European Chamber of Commerce of the Philippines (ECCP), and other industry associations. 

The DTI chief also lauded the Philippine authorities at various levels who have actively contributed to this dialogue. He cited that the Philippine Trade and Investment Center in Brussels facilitated the DTI’s engagements with the three pillars of the European Union— Commission, Council, and Parliament. He also added that these subsequent interactions in June this year were aimed to enhance engagements with the European business sector and international organizations. 

Recognizing the need for urgency in resuming PH-EU Free Trade Agreement (FTA) negotiations, Secretary Pascual said, “It is high time for the Philippines and the EU to resume FTA negotiations to maintain the strong economic relations with the EU. Through our enabling business environment, we are confidently encouraging foreign investments towards the Philippines.” 

The GSP Report monitors the progress of eight GSP+ beneficiary countries, including the Philippines, in effectively implementing the 27 international core conventions under the GSP+ scheme. These conventions, covering human rights, labor rights, environmental standards, and good governance, were evaluated for the period 2020 to 2022. The report underscores areas of progress and highlights where more effort is needed. To date, four biennial reviews have been concluded under the current GSP scheme.