UK to continue GSP+ scheme even with Brexit
Even as the UK has exited from the 28member EU bloc, there is greater chances of it maintaining the GSP plus privileges that the EU granted to other trade partners including the Philippines.
British Ambassador Asif Anwar Ahmad said this even as he discounted any disruptions in the economic relations between the two countries because of UK’s decision to leave the European Union.
The Ambassador explained that the Generalized System of Preferences (GSP) plus is something that UK does under the WTO rule and being a member of this multilateral institution. As such, Ahmad said UK has the option to carry on with the GSP plus commitment.
The Philippines is among countries currently enjoying duty free status on its various exports to the EU, including UK. The EU-GSP+ grants duty-free entry of major Philippine export products under the generalized scheme of preferences (GSP) covering 6,200 tariff lines including processed fruit and foodstuffs, coconut oil, footwear, fish and textiles. This scheme has already led to a marked increase of Philippine exports covered under the GSP+ scheme to the EU in the first half of 2015 (+27%). The EU grants GSP+ status to countries committed to ratifying and implementing core UN Conventions on human rights, environmental protection and good governance.
Ahmad also discounted of drastic moves by the British government to stop things that are working adding there were fundamental reasons for offering the Philippines the special duty-free treatment on its exports to the EU countries.
He said that engaging with the world through preferential treatment of exports from developing countries will help improve lives in country beneficiaries.
Ahmad, however, said there are processes to follow with the UK’s withdrawal from the EU, including the processes in the ongoing PH-EU negotiations for a free trade agreement. With UK out in EU, there will be some adjustments.
Trade and Industry Undersecretary Ceferino S. Rodolfo, who is also the government’s chief trade negotiator, already discounted in an earlier interview of possible delays in negotiations for the PH-EU FTA because of “Brexit”.
There will be no delay in the negotiations for the proposed Philippines-EU bilateral free trade agreement despite the decision of UK, EU’s second largest economy, to leave Europe’s 28-member country economic and political bloc, said Rodolfo.
In fact, he said, the second round of negotiation will push through as scheduled in October this year in Manila.
Rodolfo even noted that there had been no substantial discussions yet during the first round of negotiations in Brussels.
While there are still processes for UK to undergo before it can fully leave EU, the Philippines may also look at possible avenues to continue doing business with UK outside of the EU. In the future, he said, the Philippines might also consider forging bilateral FTA with UK to secure both EU and UK.