Philippines may lose zero tariffs with EU due to EJKs

MANILA, Philippines — The continuation of the government's war on drugs may have consequences on the Philippines' trade with the European Union (EU).

The European Parliament recently adopted a resolution urging the EU to persuade the Philippines to stop the extrajudicial killings related to the anti-drug campaign.

"In the absence of any substantive improvements in the next few months, procedural steps with a view to the possible removal of GSP+ preferences," the adopted resolution read.

The GSP+ or the Generalized System of Preferences Plus mean full removal of tariffs on two thirds of all product categories.

It is a component of the EU's GSP which allows developing countries to pay less or no duties on their exports to the EU.

"This gives them vital access to EU markets and contributes to their economic growth," the European Commission said in its website.

The Department of Trade and Industry (DTI) earlier said that Philippine exports can withstand the impact of possibly losing GSP+ privileges with the EU.

DTI export marketing bureau director Senen Peralda said that the country's exports growth target will not be affected.

“I think we can cope in the sense they are not necessarily the biggest exports we have to the EU. But there will be very specific items that will be affected,” Perlada said.

The Philippines will still have the regular EU-GSP wherein there would be less products covered with zero duties, Perlada said.

In December 2014, the Philippines was granted beneficiary country status under the GSP+, allowing the country to export 6,274 products duty-free to the EU market.

The European Parliament has called on the EU to support the establishment of an independent international investigation into unlawful killings and other violations of the Philippines amid the war on drugs.