The Department of Trade and Industry (DTI) has welcomed the proposal of the European Commission to extend the generalized tariff preferences, including the Generalized Scheme of Preferences Plus (GSP+) for the Philippines, for another four years. In a statement Wednesday, DTI Secretary Alfredo Pascual said ‘The GSP extension is a significant boost for our exports. It will enable them to maintain their competitive edge in the EU market and expand their trade volumes. This development reinforces our commitment to strengthen our trade relations with the European Union.’ He said the Philippines will work toward maximizing the benefits of the extension for the GSP+ to help exporters and the whole economy grow. Pascual was in Brussels, EU’s headquarters, last week as part of DTI’s European Investment Roadshow. Apart from pitching the Philippines as an investment hub for EU companies, the trade chief also asked the support of EU countries to support the extension of GSP+ for the country. The proposal of the European Commission said, ‘Given the prevailing uncertainties about the time it will take to complete the legislative process on the new GSP Regulation, it is proposed to extend the validity of the current GSP Regulation until 31 December 2027.’ The Philippines has been benefitting from zero tariff on two-thirds of all product categories entering the European Union (EU) market under the GSP+ since December 2014. The current scheme based on Regulation (EU) No. 978/2012 is set to expire by the end of 2023. The European Commission said discontinuity of the current scheme beyond 2023 may have significant economic shocks to companies in the EU and in beneficiary countries, as all imports will revert to the standard most-favored nation (MFN) rate. Aside from the Philippines, the EU grants GSP+ to seven other countries including Armenia, Bolivia, Cape Verde, Kyrgyz Republic, Mongolia, Pakistan and Sri Lanka
Source: Philippines News Agency
