DTI: European Commission seeking 4-year extension of GSP+ scheme for PH

The European Commission has proposed to extend the Philippines’ Generalized System of Preference Plus (GSP+) trade deal with the European Union (EU) for another four years, Trade Secretary Alfredo Pascual said Wednesday.

In a statement, Pascual, who was in Brussels, Belgium last week for the Board of Investments’ (BOI) Europe Investment Roadshow, welcomed the European Commission’s proposal to extend the GSP+ scheme for the Philippines until 2027.

The EU GSP+ agreement —which is set to expire in December 2023— grants the Philippines zero duties on 6,274 locally-made products, as long as the country meets the requirements regarding human and labor rights, the environment, and good governance.

The European Commission, an executive arm of the EU, is responsible for making proposals for the European Parliament.

It is now up for the European Parliament, the EU’s legislative arm, to decide on the proposal to extend the GSP+ scheme for the Philippines.

Pascual said he met with key EU officials during his stay in Brussels to discuss the renewal of the country’s GSP+ scheme.

“The GSP extension is a significant boost for our exporters. It will enable them to maintain their competitive edge in the EU market and expand their trade volumes. This development reinforces our commitment to strengthen our trade relations with the European Union,” Pascual said.

The EU is one of the Philippines’ largest trading partners, and the GSP+ scheme plays a crucial role in facilitating trade between the two regions, according to the Trade chief.

Latest data available from the Philippine Statistics Authority (PSA) show that Philippine exports to the EU stood at $667.05 million in December 2022, or 11.8% of the total, while imports from the 27-nation bloc stood at $640.53 million, or 6.2% of the total.

This brought the total export receipts to $9.242 billion and imports to $8.566 billion for the full year 2022.

Data from the European Commission indicate that trade in goods between the Philippines and the EU totaled €15.2 billion, while bilateral trade in services between the two parties hit €4.9 billion in 2019.

“With the extension of the GSP, it opens up tremendous opportunities for the Philippines to strengthen trade relations with the EU. We will seize this opportunity and work toward maximizing the benefits for our exporters and the overall economic development of our country,” Pascual said.

With the proposed extension of the GSP, the Trade chief said the Philippines is poised to tap into new opportunities, expand its export capabilities, and further enhance its economic ties with the European Union. — RSJ, GMA Integrated News