Marcos appeals for expedited reauthorization of US GSP

WASHINGTON, D.C. — President Ferdinand “Bongbong” Marcos Jr. appealed to the United States to expedite the reauthorization of the Generalized System of Preference (US GSP), which provides preferential, duty-free entry of select Philippine products to the American market.

Speaking before a business forum co-hosted by the US-ASEAN Business Council and the US Chamber of Commerce on Friday evening, Marcos cited the need for the GSP, as he said this would impact the country’s future with the United States.

“Our future with the US will be sustained not only through security and defense alliances, which is ironclad, but also through closer economic integration,” he said.

“For this reason, we appeal to the US Congress to fast-track the reauthorization of the US GSP program, which has benefited beneficiary countries such as the Philippines,” he added.

According to the Office of the United States Trade Representative, the GSP is its largest and oldest trade preference program, promoting sustainable development in beneficiary countries by helping partner countries boost their trade with the US.

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.

In the same speech, Marcos also cited private sector demand for a free trade agreement (FTA) with the United States.

“The benefits for concluding an FTA together with a Critical Minerals Agreement between our countries will be transformative and will create new jobs, strengthen supply chains, establish new businesses, and upskill our workforce,” he said.

“The renewed alliance between the Philippines and the United States also underpins close people-to-people ties. The mutual understanding and admiration of both our peoples for each other, anchored on our own unique yet quite familiar cultures, binds us deeper. To further bridge our countries and connect our industries, the Philippines will continue to open its skies,” he added.

Before the Trilateral Leaders’ Summit by the leaders of the three countries, Philippine envoy to Washington Jose Manuel Romualdez said the country hoped to have a free trade agreement (FTA) with Japan and the United States.

US Trade Representative Ambassador Katherine Tai said in April 2023, however, that a bilateral FTA with the Philippines was not on the negotiating table as the administration was more focused on the Indo-Pacific Economic Framework (IPEF).

The latest data available from the Philippine Statistics Authority (PSA) showed that the United States 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%.

In terms of imports, Japan was the second-biggest supplier of imported goods to the Philippines with $845.23 million or 8.8% of the total, behind China with $2.18 billion or 22.8%. Meanwhile, the United States came in sixth with $550.16 million.

Manila is also set to host the 6th Indo-Pacific Business Forum in May, expected to bring together some 500 business leaders, project developers, government officials, and financing sources. — DVM, GMA Integrated News