Renewal of GSP scheme, nuclear power explored by Romualdez

SPEAKER Ferdinand Martin G. Romualdez on Wednesday highlighted the importance of renewing the Generalized System of Preferences (GSP) program, which expired on December 31, 2020, to further boost trade between the Philippines and the US.

Following his meeting with Rep. Gary Palmer of Alabama’s 6th District at Capitol Hill, Washington, DC, on April 16 (Tuesday afternoon US time), Romualdez said that the GSP scheme has been instrumental in enhancing trade between the Philippines and the US.

The GSP program offers nonreciprocal, duty-free treatment to numerous developing nations, thereby fostering economic growth through increased trade.

“Before the GSP program lapsed, the Philippines exported more than $2 billion worth of goods tax-free to the US annually through the program,” Romualdez said. “The program has been instrumental in creating jobs and investments in export manufacturing, benefiting both economies.”

The Speaker believes US buyers of Filipino GSP products would benefit from the duty-free status of Philippine exports.

“This will lead to decreased prices in the US for these products and commodities, thereby easing inflation,” he said.

In exploring future trade arrangements, Romualdez proposed the potential for a free trade agreement.

“We need to leverage Philippine resources and US technologies and investments, particularly in critical minerals, to support the electric vehicle industry and the broader transition to clean energy, including nuclear energy,” he said.

Palmer, a member of the US House Committee on Energy and Commerce and the Committee on Oversight and Accountability, engaged in discussions with Romualdez regarding the significance of the 123 Agreement.

This civil nuclear deal, inked by Washington and Manila in November last year, facilitates the transfer of nuclear energyrelated materials and components between the two nations.

“The 123 Agreement lays the legal framework for potential nuclear power projects with US providers, paving the way for streamlining the licensing requirements for the private sector with respect to investments in nuclear-related intangible transfers of technology,” Romualdez said.