More investments in export sectors pushed

THE Philippines needs to continue its efforts to attract more investments particularly in export industries to prepare for the country’s expected increase in exports to European Union (EU) with the granting of a preferential tariff scheme under the Generalized System of Preference (GSP)+.

Walter van Hattum, head of the economic and trade section of the EU delegation to the Philippines, said the GSP+ scheme will immediately provide tariff advantages to the Philippines, resulting in lower product costs into the European markets.

“Meaning there would probably be more demand for Filipino products because it becomes cheaper than the products of your neighboring countries. I think the dynamic effect is on the investments,” he said on the sidelines of the 39th anniversary of the Foreign Buyers Association of the Philippines (Fobap).

To take advantage of the GSP+ scheme, Van Hattum said the Philippines should produce more products with high local value contents such

as footwear, garments, processed foods and fruit jellies.

“The industries are here already. That one can expand but you can also use it for foreigners or for Filipinos to attract more capital into the Philippines to start new businesses. So the idea is to help the Philippines build more manufacturing capacity, create jobs,” he said.

Van Hattum believed that there are some manufacturers now looking at the Philippines as a potential new investment destination to produce such export products which were produced before in neighboring countries belonging to upper middle income class.

He s ai d the GSP+ scheme has reduced the total list of beneficiaries from 177 countries to 90 countries, thus excluding nations belonging to upper middle income class such as Singapore and Malaysia.

To attract more investments for these export products, Van Hattum underscored the need for the country to establish a business conducive climate.

“The main reason why investors are deciding to go to a country is not only because of the tariffs. It is because of the business climate, flexibility (where you) can you do business easily,” he said.