Philexport urges gov’t to plan for optimization of EU GSP+ benefits

MANILA, Philippines - Exporters are calling on the government to come up with strategies that would allow the country to take advantage of the European Union’s (EU) Generalized System of Preferences Plus (GSP+) scheme.

According to Philippine Exporters Confederation Inc. (Philexport) president Sergio Ortiz-Luis Jr., the country needs to have strategies to address impediments to exports in order to take advantage of the EUGSP+.

“PPP (public-private partnership) is a good strategy to address export constraints. If we are able to maximize market access from this GSP, it will help push export targets in the PEDP (Philippine Export Development Plan),” he said.

The PEDP for 2014 to 2016 submitted to President Aquino by the Export Development Council sets a growth target range of eight to 9.3 percent for total exports this year from last year’s $78.5 billion.

For 2015, the plan has set a nine-to 10.1-percent goal for total exports growth, while total exports are targeted to increase by a range of 10.1 to 11 percent in 2016.

The EU Parliament approved the Philippines’ application to qualify for EU GSP+ status during its plenary meeting on Dec. 18.

The GSP+ would allow the Philippines to enjoy zero duty for 6,274 products exported to the EU for a period of 10 years.

Prior to the approval of the Philippines’ application for EU GSP+ status, the country was a beneficiary of the regular GSP program which covers 6,209 products, with 2,442 products subject to zero duty and the rest subject to lower tariffs.

The Philippines is the only country in Southeast Asia which has been granted the GSP+ benefits by the EU.

“Considering the close competition with our neighbors, especially with the ASEAN (Association of Southeast Asian Nations) economic integration (next year), we now have a little advantage in the EU market because over 6,000 items are zero tariff. This effectively will give our garments, textiles, agriculture and marine products a special boost to be able to increase exports to the EU,” Ortiz-Luis said.

Meanwhile, the Foreign Buyers Association of the Philippines (FOBAP) is encouraging its member principals and buyers to plan for an increased volume of exports to the EU given the approval of the Philippines’ application to the GSP+.

FOBAP president Robert Young that some factories plan to expand their operations by 20 to 40 percent in order to meet the projected 15-percent increase in export orders as a result of the grant of GSP+ status to the Philippines.

To be able to take advantage of the GSP+ status, the Department of Trade and Industry is set to conduct information sessions through its

Doing Business in Free Trade Areas (DBFTA) program to allow exporters and other businesses to learn about the benefits of utilizing the scheme.

Trade undersecretary Adrian Cristobal Jr. said last week five information sessions focused on doing business in the EU using GSP+would be held in January in Metro Manila, Cebu, Davao, General Santos City and Angeles City in Pampanga.

Outbound business missions would also be conducted to Germany, Netherlands and United Kingdom next year as part of efforts to promote the utilization of the EU GSP+.

The DTI likewise intends to work on assisting exporters to meet high standards set by the EU for exports.