EU’s GSP+ raised competitiveness of small firms, communities — DTI

THE SURGE in 2017 exports to the European Union (EU), led by agricultural products, was aided by the bloc’s Generalized Scheme of Preferences Plus (GSP+) import scheme, which helped Filipino communities and small businesses raise their competitiveness, officials said

Trade Secretary Ramon M. Lopez in a statement on Sunday said that the Department of Trade and Industry (DTI) welcomes the 31% increase in 2017 Philippine exports to the EU to €2 billion, which came even as Brussels and Manila engaged in highprofile spats over human rights.

Specifically, the exports include fish and other marine products, prepared food and fruits. Apart from produce, it said automotive parts, leather, textile and footwear also rose considerably due to the GSP+.

“This trade preference has benefitted several communities in the Philippines and opened opportunities for our Micro, Small, and Medium Enterprises (MSME). In the same manner, it has allowed our MSMEs to be more competitive in the local and foreign market,” Mr. Lopez said.

The Philippines has been part of the GSP+ since December 2014 and is expected to retain the benefits for eight years. Mr. Lopez has said it usually takes three years before the effects of the GSP+ are felt in trade.

An EU Commission report issued Friday, “The second report on the effects of GSP and the special incentive arrangement for sustainable development and good governance (GSP+) covering 2016-2017,” evaluates the progress of the GSP scheme and the implementation of the 27 conventions which cover human rights, labor rights, environment and good governance.

It noted that the Philippines achieved considerable progress in gender equality.

Among the 10 countries in the GSP+ program, apparel and clothing make up the bulk of imports that the EU receives at 53% or €4 billion, with Pakistan as the top exporter to the bloc, followed by the Philippines.

The EU Commission in its report clarified that countries that violate human and labor rights, environmental and good governance conventions will have their GSP+ status withdrawn, but this will not necessarily extend to the standard GSP. It is up to the EU Parliament if the country maintains its GSP+ status.

In the case of the Philippines, there were concerns last year over human rights and labor issues raised by parties within the EU which were addressed by Mr. Lopez and special envoy to the EU Edgardo J. Angara in September.

The report noted improved socioeconomic development, education and health. In the field of good governance, the report said the Philippines is addressing red tape and corruption.

Likewise, improvements were noted in the juvenile justice system but the Commission expressed concern about the lowering of the age for criminal responsibility, the possible reintroduction of the death penalty and the campaign against illegal drugs.

“Together with statements by the President that can be seen as incitement to killings and fostering a culture of impunity, the conduct of the ‘war on drugs’ raises serious questions about the Government’s commitment to human rights,” the EC said.—