The recent proclamation of the US to expand the coverage of its GSP program, the DTI pointed out, presents an opportunity for the country, especially Mindanao to penetrate the US market.
The US GSP program grants duty-free treatment to specified products imported from more than 140 designated developing countries and territories.
Currently, approximately 5,500 products or product categories are eligible for duty-free entry from some or all GSP beneficiary countries.
On July 1 this year, following an annual review of the GSP program, the US expanded the program’s product coverage.
Major Philippine exports to the US include semi-conductor devices; portable digital automatic data processing machines; storage units; finished electrical and electronic machinery and women’s wear.
Unfortunately, over the past few years, Philippine exports to the US has been declining.
The DTI cited the fact that the decrease in exports from 2000 to 2002 reflects the performance of GSP-listed products exported to the US.
Based on the statistics of the US Department of Commerce, the Philippines has not fully used its duty-free access as provided by the US GSP program.
On the other hand, the DTI noted that in 2001, exports to the US from Mindanao grossed a volume of 967 million kilogram worth $252 million.
These products include coconut products; bananas; pineapples; tuna; iron and nickel ores agglomerates; fruits and other edible parts of plants; portland cement; shrimps and prawns; activated carbon and cetyle and stearyl alcohols.