DTI pushes Phl bid to qualify for EU GSP

MANILA, Philippines - The Trade department is expediting its application to the European Union’s (EU) generalized system of preferences plus (GSP+) which will allow the country to get additional tariff reductions.

Trade undersecretary Adrian Cristobal, Jr. said in a statement yesterday the department has met with industry groups and multinational companies in Europe on news that the country may qualify for the GSP+.

“We are determined to take advantage of this opportunity and have instructed our trade office to work closely and coordinate with the GSP desk of the EU Commission Directorate General for Trade to expedite our application,” he said.

The Trade department said the Philippines, Pakistan, and Ukraine may qualify for GSP+ which grants additional preferences or tariff reductions being applied under the EU GSP General Arrangement.

Under the EU GSP General Arrangement, duties on non-sensitive products will be suspended entirely, while the tariff for products considered to be sensitive will be reduced by 3.5 percentage points.

Non-sensitive products are mostly industrial products like mineral products, chemicals, imitation jewelry, selected electrical and electronic products, furniture, toys and games and selected agriculture products like canned pineapples.

Agriculture products like coffee, vegetable fats and oils like coconut oil, preserved or prepared food like shrimps and prawns and canned tuna, tobacco products, plastic products, garments, travel goods, footwear, and some semi-conductor devices meanwhile are considered sensitive products.

The DTI said Filipino exporters continue to benefit from the updated GSP of the EU which was approved recently and takes effect on 2014 until 2023.

Philippine products that enjoy EU GSP include crude coconut oil, pneumatic tires, spectacle lenses, canned tuna, and prepared fruits like canned pineapples and edible parts of plant, activated carbon and imitation jewelry, tennis balls and dried or prepared pasta.

The updated EU GSP has removed high and upper middle income countries from the list of beneficiary countries under the general arrangement.

Among the countries that have graduated from the scheme are Russia, Brazil, and Saudi Arabia which are considered capable of competing on equal footing with the EU.

Countries which benefit from a preferential market access arrangement like a free trade agreement (FTA) with the EU have also been removed from the list of eligible countries under the general arrangement.

While the Philippines is engaged with the EU through the GSP scheme, it is also looking to come up with a possible FTA with the region to further enhance trade.