MANILA, Philippines - The Philippines is studying the possibility of applying to the European Union’s Generalized Scheme of Preferences Plus (GSP+), an arrangement that will allow the country to get more tariff reductions, the Department of Trade and Industry (DTI) said.
“The DTI’s Bureaus (of) Export Trade Promotion (BETP) and International Trade Relations (BITR) are currently coordinating with concerned government agencies to discuss and assess the possibility of the Philippines applying to the GSP+,†the DTI said yesterday.
“Consultations are also being conducted with the private sector to gather inputs and issues on the GSP+ scheme,†it said further.
The BETP is the DTI’s export promotions arm.
The BITR, meanwhile, engages and represents the country in bilateral and multilateral trade and investment negotiations.
The EU GSP is a trade agreement in which the EU grants trade preferences through reduced tariffs to exports of 176 beneficiary countries part of the scheme under three arrangements: general GSP, GSP+ and the everything but arms (EBA).
Under the EU GSP general arrangement, duties on non-sensitive products shall be suspended entirely, while the tariff for products considered to be sensitive shall be reduced by 3.5 percentage points.
Non-sensitive products are mostly industrial goods, while those classified as sensitive products include agricultural produce and some semi-conductors.
The Philippines is currently a beneficiary of the GSP general arrangement which covers 6,209 products, with 2,442 subject to zero duty and the rest slapped with lower tariffs.
The GSP+ meanwhile, is a special incentive arrangement which has a larger coverage of 6,274 products which are all subject to zero duty.
To avail of the GSP+, a country must meet two conditions which are: non-diversification of exports and low proportions of EU import, and the ratification of 27 international conventions on human and labor rights, environment and governance principles as well as the effective implementation of these conventions.
The EU has indicated that the Philippines meets the first criterion.
For the country to meet the second requirement, a detailed submission to the EU of domestic laws, regulations and measures relative to the implementation of the conventions will be needed.
The country will also have to provide a statement of commitment to accept regular EU monitoring and review of implementation.
The DTI said it is currently in the process of consolidating documentary evidence on the country’s ratification and implementation of the 27 conventions on human rights and sustainable development.