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Philippine Trade and Industry Secretary Fred Pascual committed to establish strong trade and investment ties with the European Union before the EU Parliament Committee on International Trade late last month.
He made this vow to the Parliament in Brussels, during this critical last month of the monitoring process, for the renewal of the Philippines GSP+ preferential status.
Manifesting willingness to work closely with the EU, Secretary Pascual highlighted EU-GSP+ support in improving bilateral relations and socio-economic development in the Philippines.
This is in conjunction with the policies and programs of the new administration, which reaffirms the Philippines’ compliance with international conventions.
The Generalized Scheme of Preferences Plus or the GSP+ is an incentive arrangement that grants the Philippines zero tariffs on 6,274 products or 66% of all EU tariff lines.
This preferential trade is maintained, while the country upholds its commitments under the GSP+ select 27 international conventions on human rights, labor, good governance and environment.
Mr. Pascual described the Philippines as an attractive investment destination, given its solid macroeconomic fundamentals, enabling policy environment and young and trainable workforce.
He said he foresees that with a stable and predictable political regime, the country is well-positioned in the Indo-Pacific to become a regional hub for manufacturing, innovation, training, and education.
Since the Philippines’ successful application to the GSP+ in 2014, the country has benefited from increased market access to the EU.
Philippine exports to the EU climbed from EUR5.3 billion in 2014 (under the standard GSP) to EUR7.77 billion in 2021.
In 2021, the Philippines recorded its highest utilization rate at 76% of total eligible exports, including tuna, processed fruits, and spectacle lenses.
The GSP+ has benefited EU companies as well, as they invest in manufacturing facilities in the Philippines, to take advantage of the country’s extensive and expanding domestic market as well as its network of FTAs. This includes those with ASEAN. They have also gained from relatively lower cost of raw materials.
He added the Philippine government is ready to work toward the resumption of negotiations of the Philippine-EU Free Trade Agreement (FTA).