With the extension, Trade and Industry Undersecretary Thomas Aquino urged Philippine exporters to take advantage of the extension as it is an opportunity to increase their export earnings and at the same time promote Philippine industrialization and diversification of markets.
The EU GSP offers lower tariffs or completely duty-free access to products from about 180 developing countries and territories.
It benefits around 7,000 products from developing countries with tariff rates radically reduced up to zero for some 1,200 products.
The EU GSP operates on a 10-year cycle. The last one started in 1995 and is scheduled to end this year.
However, the current cycle was extended for another cycle to ensure that exporters in developing countries get the maximum information and assistance in tackling the EU market.
Products that qualify for tariff reductions under the EU GSP scheme include specific commodities in the categories of edible products of animal origin, edible vegetables and nuts, oils and waxes, certain clothing and footwear, glass, and ceramic handicrafts.
The extension of the EU GSP also provides for additional special incentive arrangements for countries that incorporate International Labor Organization (ILO) standards on forced labor, freedom of association and the right of collective bargaining in its legislation.
Aquino pointed out that the Philippines has yet to maximize the benefits in tariff reductions since the availment rate of the country’s exporters of the EU GSP amounts to only 43 percent in 2002.
Specifically, the Philippines exported about 7.324 billion euros worth of products to the EU market in 2002, of which 1.394 billion euros were eligible for the EU GSP.