US Congress seen approving GSP scheme revival this year —Amb. Romualdez

WASHINGTON, DC — The bill that will renew the United States’ Generalized Scheme of Preferences (GSP), which provided duty-free entry of exports to the American market from select countries such as the Philippines, will likely be approved by the US Congress this year.

At a meeting with Filipino journalist-participants of the Friends, Allies, Partners Program here on Thursday (Manila time), Philippine Ambassador to the US Jose Manuel Romualdez said that “actually there is already a move from the US Congress to approve it.”

The GSP is the US government’s largest and oldest trade preference program that allows beneficiary-partner countries to boost trade with the US through duty-free entry of select products.

The GSP program was instituted in January 1976 under the US Trade Act of 1974 for 10 years, and has been renewed periodically since then by the US Congress.

For the Philippines, the GSP scheme allowed the country duty-free entry to the US market of some 3,500 eligible products. Manila’s eligibility for the US GSP expired on December 31, 2020.

Romualdez told reporters that a bill renewing the GSP scheme has already been filed by US lawmakers.

Relatedly, US House Ways and Means Committee chairman Adrian Smith filed last week the GSP Reform Act, which seeks to modify and reauthorize the GSP scheme.

Romualdez said several US lawmakers have told him that renewing the GSP is already part of the US Congress’ agenda.

Asked if the reauthorization of the GSP will be passed this year, Romualdez said, “I think so, because it’s already been filed… we’re confident it’s going to be passed.”

President Ferdinand "Bongbong" Marcos Jr., speaking before a forum co-hosted by the US-ASEAN Business Council and the US Chamber of Commerce early this month, appealed to the US to expedite the reauthorization of the GSP scheme. 

As of 2020, the Philippines had utilized 74% of its US GSP privileges, valued at $1,557,286.918.

Philippine exports under the US GSP scheme include rubber tires, handbags, insulated electronic conductors, cane sugar, and non-alcoholic beverages, among others. 

“The GSP will even benefit some of the manufacturing companies in the Philippines that are US companies. We are talking about leather goods, for instance, leather items that are being [made] in the Philippines by American companies,” Romualdez said, adding that American companies “have been asking us to lobby for the renewal of the GSP.

The latest data available from the Philippine Statistics Authority (PSA) showed that the US was the biggest recipient of Philippine exports in February with $947.83 million or 16.0% of the total, followed by Japan with $849.17 million or 14.4%. —KBK, GMA Integrated News