NextGen Day

While seeking a possible free trade agreement (FTA) with the bloc to strengthen bilateral trade relations, a trade official is pressing for the extension of the European Union’s (EU) trade preferences program.

The EU Generalised Scheme of Preferences Plus (GSP+) should be renewed, according to Angelo Salvador Benedictos, director of the Department of Trade and Industry’s Bureau of International Trade Relations. “It benefits a lot of industries, a lot of areas in the Philippines,” he added.

According to a news release issued on Saturday, the existing EU GSP+ system, which permits duty-free entry of 6,274 Philippine products into Europe, will expire at the end of 2023.

“As a result, we gain from it and make use of it.” It is beneficial to both us and Europe. In the near term, we must be able to renew and extend, and in the long run, please allow us to consider a better method to trade between Europe and the Philippines, including the FTA that we have been talking about,” he stated in a recent webinar.

According to Benedictos, there have already been two rounds of FTA negotiations between the Philippines and the EU.

The Philippine strategic objectives in engaging the EU in an FTA, according to the BITR-Bilateral Relations Division, include securing additional duty-free market access beyond those covered under the GSP+ scheme on a permanent basis, providing a conducive framework for attracting greater investments from the EU, and being on par with other ASEAN member states that are aggressively pursuing FTAs with the EU.

Because the current GSP regulation will expire on December 31, 2023, Kristiyana Kalcheva, policy officer for bilateral relations in trade and sustainable development and the EU GSP in the European Commission’s directorate-general for trade, said the EC proposed a new regulation on September 22 last year, which the European Parliament and Council are currently debating.

“To ensure certainty and a smooth transition, the goal is to have the new GSP rule enacted by 2022, with application beginning January 1, 2024,” she stated.

One key issue, according to Kalcheva, is the Commission’s proposal for GSP+ beneficiaries to reapply for the program.

“This is because there are additional conditions such as conventions and also an aspect that entails a plan of action for the implementation of conventions,” she explained, “so a reapplication is the best method to verify that beneficiaries adhere by the new proposed conditions for entering the GSP+.”

Meanwhile, the country is being pressed once again to enhance its use of the EU GSP+.

The Philippines’ utilization rate of EU GSP+ preferences reached 75% in 2020, according to Luc Veron, EU ambassador and head of the EU delegation to the Philippines.

“We have seen the importance of GSP+ in supporting the overall EU-Philippines trade-in products during the last two years, although the economic system and international trade experienced many obstacles owing to the pandemic.” That is why the EU collaborates closely with its Philippine partner to ensure that the potential trade gain is realized. “We can certainly boost the utilization rate closer to 100 percent and increase the overall value of Philippine exports to the EU if we work together,” he said.

Agriculture commodities, such as processed foods and fishery products, as well as manufactured goods, gain greatly from GSP+, according to Veron.

Sergio Ortiz-Luis Jr., president of the Philippine Exporters Confederation, Inc. (Philexport), claimed in a separate interview that at least 500 of his members export to the European Union.

“The EU GSP+ extension and an EU FTA will bode well for the development and growth of this supply chain as well as real export performance,” he said. “To qualify more finished products, we simply need to address concerns like high transportation costs and raw material availability.”

Save/Share this story with QR CODE

---

Disclaimer

This article is for informational purposes only and does not constitute endorsement of any specific technologies or methodologies and financial advice or endorsement of any specific products or services.

Need to get in touch?

Feel free to Contact NextGenDay.com for comments, suggestions, reviews, or anything else.

---

We appreciate your reading. Simple Ways To Say Thanks & Support Us:
1.) GIVE A TIP. Send a small donation thru Paypal
Your DONATION will be used to fund and maintain NEXTGENDAY.com
Subscribers in the Philippines can make donations to mobile number 0917 906 3081, thru GCash.
3.) BUY or SIGN UP to our AFFILIATE PARTNERS.
4.) Give this news article a THUMBS UP, and Leave a Comment (at Least Five Words).

---

AFFILIATE PARTNERS

World Class Nutritional Supplements - Buy Highest Quality Products, Purest Most Healthy Ingredients, Direct to your Door! Up to 90% OFF.
Join LiveGood Today - A company created to satisfy the world's most demanding leaders and entrepreneurs, with the best compensation plan today.

---