The Department of Trade and Industry (DTI) will file its application to join the European Union’s new duty-free scheme by month’s end after Philippine agencies completed documentary requirements.
Trade Undersecretary Adrian S. Cristobal Jr. last week told reporters that Secretary Gregory L. Domingo will sign the formal application for the EU Generalized System of Preferences Plus (GSP+) in behalf of President Benigno Aquino III.
Cristobal said government agencies that need to comply with the 27 international conventions covering the environment, governance, human and labor rights, and sustainable development—a criterion for EU GSP+ eligibility—have completed their requirements.
Upon submission, it may take the EU about half a year to evaluate the Philippines’ application.
Cristobal is optimistic that Philippine exports will enjoy the expanded duty-free perks to the EU by next year.
The Philippines is eyeing to qualify for the GSP+ in the next 10-year cycle that runs from 2014 to 2023, as the existing GSP cycle ends in December.
The country is a beneficiary of the regular EU GSP, under which 2,442 products enter Europe duty-free while 3,767 are slapped lower tariffs. Last year, 1.076-billion euros or roughly P63-billion worth of Philippine goods enjoyed duty-free entry to the EU, mainly chemicals, live animals and animal products, vegetables products, wood and articles of wood, and jewelry.
If the country qualifies for GSP+, 6,274 products would be slapped zero tariff, allowing Philippine exports to the EU to grow by 12 percent alongside the creation of 270,000 new jobs.
A DTI study showed that an additional 611.8-million euros or almost P36-billion worth of Philippine exports can enter duty-free under the EU GSP+.
Philippine exports of tuna, garments, leather and travel goods, among other products are expected to jump significantly through the EU GSP+.
As for widening access to non-EU countries in Europe, the Philippine government has begun impact studies for a free trade agreement (FTA) with the European Free Trade Association (EFTA), which is composed of Iceland, Liechtenstein, Norway and Switzerland.
Source: Business Mirror, October 21, 2013
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