MAP: EU sanc­tion to hurt econ­omy

Such sanc­tion will in­crease the num­ber of the un­em­ployed among our coun­try­men at the time when they most need jobs

Daily Tribune (Philippines) - - BUSINESS - BY RAFFY AYENG @tri­bunephl_raffy

The Man­age­ment As­so­ci­a­tion of the Philip­pines (MAP) aired its con­cern on the im­mi­nent re­vo­ca­tion of the Philip­pine ex­port tar­iff in­cen­tives by the Euro­pean Union (EU), say­ing such sanc­tion will se­ri­ously hurt many en­ter­prises, es­pe­cially in this try­ing times.

MAP pres­i­dent Fran­cis Lim said they are hop­ing that the re­moval of the Gen­er­al­ized Scheme of Pref­er­ences Plus (GSP+) by the EU coun­tries will not ma­te­ri­al­ize.

“It will make our prod­ucts less com­pet­i­tive and will se­ri­ously im­pact sev­eral in­dus­tries. Such sanc­tion will in­crease the num­ber of the un­em­ployed among our coun­try­men at the time when they most need jobs,” Lim said in a state­ment sent to the Daily Tri­bune.

Last week, the EU Par­lia­ment voted over­whelm­ingly 626 against seven, with 52 ab­sten­tions, to ap­prove a res­o­lu­tion to re­move the Philip­pines’ trade ben­e­fits, due to the “se­ri­ous­ness of the hu­man rights vi­o­la­tions in the coun­try.”

Lim noted that the Philip­pine econ­omy is at stake if the EU will con­tinue to im­pose its sanc­tion.

“Our econ­omy will suf­fer more dam­age, es­pe­cially given the con­trac­tion we are al­ready ex­pe­ri­enc­ing with the pan­demic,” Lim said, as he calls on the gov­ern­ment “not to take the mat­ter lightly for the sake of our peo­ple.”

“We hope it will be dis­cussed and ad­dressed by both par­ties in a mu­tu­ally sat­is­fac­tory man­ner,” Lim noted, who heads 1,051 MAP mem­bers.

MAP is a 70-year old man­age­ment or­ga­ni­za­tion whose mem­bers rep­re­sent a cross-sec­tion of CEO, COO and other top man­age­ment prac­ti­tion­ers from the largest lo­cal and multi­na­tional com­pa­nies op­er­at­ing in the Philip­pines.

Just re­cently, the Euro­pean Cham­ber of Com­merce of the Philip­pines also aired un­cer­tainty, as the mulled sanc­tion will ag­gra­vate the sit­u­a­tion for the low-in­come sec­tors, its mem­bers, and the coun­try’s eco­nomic sit­u­a­tion.

While the Philip­pine Ex­porters Con­fed­er­a­tion, Inc. also raised alarm as the loom­ing sanc­tion might af­fect up to 20 per­cent of its ex­ports to the EU, in­clud­ing the in­dus­tries on co­conut, marine prod­ucts, semi­con­duc­tors, leather goods and tuna.

Our econ­omy will suf­fer more dam­age, es­pe­cially given the con­trac­tion we are al­ready ex­pe­ri­enc­ing with the pan­demic.

The GSP+ sta­tus priv­i­lege of the Philip­pines was en­joyed by 6,274 lo­cally-made prod­ucts, in­clud­ing those man­u­fac­tured by the mi­cro, small and medium en­ter­prises.

PHO­TO­GRAPH COUR­TESY OF IRISH­TIMES

THE Philip­pine Ex­porters Con­fed­er­a­tion Inc. raised ap­pre­hen­sions as the loom­ing sanc­tion might af­fect up to 20 per­cent of its ex­ports to the Euro­pean Union, which in­clude lo­cal in­dus­tries on co­conut, marine prod­ucts, semi­con­duc­tors, leather goods and tuna.

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